Buying a car from a US dealer

A US dealer is usually a safer bet than an auction, but selling to a UK buyer is a different kind of sale. Here is how to find the right dealer, avoid paying tax twice and get the paperwork right.

Buying from an American dealer feels safer than bidding at auction, and usually it is. You get a named business, a car you can ask questions about and a seller who has done the paperwork before. The catch is that most US dealers sell to people who live down the road. Selling to someone in the UK, who will never drive the car on an American road, is a different kind of sale, and it pays to know how it works before you agree a price.

Shipping from the USA
From £1,450, shipping only
Time at sea
Around 2 to 4 weeks
Import tax
10% duty + 20% VAT
Key document
The original title

Finding a dealer who will sell for export

Plenty of US dealers have sold cars to overseas buyers, and plenty never have. The ones that have will usually say so quickly, know what a bill of sale for export looks like and be happy to hand the car to a transport company rather than a driver. Specialist and classic dealers tend to be the most used to it, as a lot of their buyers are out of state anyway.

A few questions on the first call will tell you a lot. Have they sold a car for export before? Do they have the title in hand? Will they release the car to a carrier you send? If the answers are vague, that is useful to know before you pay anything.

Brand new cars

New cars are harder. Some dealers will not sell a new car for export at all, and some ask buyers to sign an agreement that they will not export it for a set time. A new car also has no title yet, so the export paperwork is the Manufacturer's Statement of Origin instead. Ask about both before you get attached to a particular car.

Dealer or auction?

Both routes end at the same port, but the buying is very different.

Shipping, UK tax and testing are the same either way.
FeatureUS dealerUS auction
Who you deal withA named business you can callThe auction, often through a broker
Seeing the carPhotos, video and an inspection on requestListing photos and the yard notes
TitleUsually clean, held by the dealerOften salvage or rebuilt
PriceHigher, with room to negotiateLower, with buyer and broker fees on top
CollectionUsually some time to arrange itStorage charges start quickly

If you are still weighing up an auction car, our guide to buying a car from a US auction covers Copart, IAAI and brokers in detail.

US sales tax on an export sale

There is no national sales tax in the USA. Each state sets its own, and some counties and cities add to it. Many states have rules that let a dealer sell a car without sales tax when it is leaving the state or the country, but how that works and what proof the dealer needs varies a great deal.

It matters because you pay 10% duty and 20% VAT when the car arrives in the UK whatever happens. If US sales tax is left in the price as well, you are paying tax twice, and you will not get it back here. Ask the dealer before you agree a price whether they charge sales tax on an export sale, what paperwork they need from you, and whether any tax they take is refundable once the car has left. Get the answer in writing.

Check the invoice before you pay. Sales tax, dealer fees and any registration or plate fees should all be shown on their own lines. A car going for export should not need US plates or registration, so query anything that looks like a fee for those.

Title and paperwork

The title is the document that lets the car leave. US Customs and Border Protection asks for the original title, or a certified copy, plus two complete copies, presented at the port at least 72 hours before the car sails. Every used car also has to be filed in the US export system, which our agents in the US handle for you.

With a dealer sale, the question is when you will have the title in your hands. Some dealers hold it and sign it over on the day. Others have to wait for it to come back from a lender, or send it to the state to be put in your name, which can take weeks. Ask which it is, because the car cannot sail without it. Our guide to US export rules explains the full process, including the letter needed if there is a lien on the title.

From the dealer

0 of 6 done

Keep the invoice safe. UK import VAT is worked out on what you paid, and HMRC will want to see it. The full list for the UK end is in documents to ship a car to the UK.

Checking the car

A good dealer will send a walk-round video, a cold start and photos of the underside without fuss. Ask for the VIN and run a history report from Carfax or AutoCheck, then check it against the title itself. Our guide to history checks for imported cars explains what each one shows.

On anything worth more than a few thousand pounds, an independent pre-purchase inspection is money well spent. Choose the inspector yourself rather than taking the dealer's suggestion, and ask for photos of rust, leaks and any repair work. If the car has been in the northern states, the underside matters more than the paint. Our guide to buying a car abroad safely has the full condition list.

Paying safely

Most dealers want a bank transfer, often with a deposit first. Pay only into a business account in the dealer's own name, and confirm the bank details by phone on a number you found yourself, not one in an email. Payment details that change at the last minute are a warning sign, whatever the reason given.

Be wary of a dealer you cannot speak to, a price well below every other similar car, or a request to pay a third party or a holding service you have never heard of. Our guide to car shipping scams covers the patterns to watch for.

Getting it to the port

You do not need to fly out. We collect from anywhere in the USA, including dealer forecourts, and truck the car to the port. The usual ports are New York, Savannah, Houston and Oakland. Allow about 2 weeks for paperwork and loading, then around 2 weeks at sea from the East Coast or around 4 from the West Coast.

As a guide, built from a year of real jobs, shipping a car from the USA starts from £1,450, shipping only. A dealer near the coast costs less to reach than one in the middle of the country. The car can go in a shared container or by RoRo, and our guide to the cost of shipping a car from the USA explains what moves the price.

A car from the USA pays 10% import duty and 20% import VAT, worked out on the price plus the shipping, with the VAT charged on top of the duty. A car over 30 years old pays 5% VAT and no duty, which today means one built before October 1996. The import tax calculator runs your own numbers.

American cars usually need amber rear indicators, side markers, a rear fog light and headlights set up for driving on the left. A car under 10 years old then takes an IVA test, and an older one takes an MOT. We run one of only seven privately operated IVA centres in Great Britain, and our dealer-level DVLA account lets us register imported cars within 10 working days once they pass. See converting an American car for UK roads for the detail.

Questions people ask

Will a US dealer sell a car to someone in the UK?

Many will, especially specialist and classic dealers. Ask early whether they have sold for export before and whether they will release the car to a carrier you send.

Do I pay US sales tax if the car is being exported?

It depends on the state and the dealer. Many states let a dealer sell without sales tax when the car leaves, but the rules and proof needed vary. Ask before you agree a price and get the answer in writing.

Do I need to go to the USA to collect the car?

No. We collect from anywhere in the USA, including dealers, and truck the car to the port for you.

What paperwork do I need from the dealer?

The original title signed over to you, or a certified copy, and a bill of sale showing the price and VIN. US Customs needs the title at the port at least 72 hours before the car sails.

Can I buy a brand new car from a US dealer?

Sometimes, but some dealers will not sell new cars for export or ask you to sign an agreement not to export them. A new car is exported on its Manufacturer's Statement of Origin rather than a title.

Found a car at a US dealer? Send us the listing on the quote form and we will price the collection, shipping and registration before you pay.

Shipping is half the job

Then My Car Import puts it on UK plates.

Shipping a Car is part of My Car Import, so when the container is unloaded the car is already where it needs to be. It goes straight into testing and registration on the same site, with no extra transport and no waiting for a test slot somewhere else.

  • One of only seven privately operated IVA centres in Great Britain
  • The only privately owned MSVA test centre in Great Britain
  • A dealer-level DVLA account, so we register imported cars within 10 working days
  • In-house conversions and test preparation, from lights to speedos

Tell us about your car

Where it is, what it is and when you need it here. We will price the whole import, from collection abroad to UK registration with My Car Import, not just the boat.

Free and no obligation. A real person writes every quote.

Rather talk it through? Call 01332 810442

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