Car Import costs - are our local cars for sale overpriced?

[Mustang Sally]

And then also keep in mind that the USA car is essentially bought "unseen".
I brought my Coupe in from Richmond after having a family member check it inside out and still found a couple of unexpected surprises.
A fairly reliable (unfortunately!) Rule of Thumb is to double the price - $30k equates to $60k and @ R15 that evens out around the R900k mark.

If it was much cheaper, many more would have been brought in.

At the end of the day, the value debate is purely academic. A car is worth what somebody else is willing to pay for it. If it is very cheap then the seller is either desperate or more likely - One should be olfactoring a rodent!

[brennan67]

And then also keep in mind that the USA car is essentially bought "unseen".
I brought my Coupe in from Richmond after having a family member check it inside out and still found a couple of unexpected surprises.
A fairly reliable (unfortunately!) Rule of Thumb is to double the price - $30k equates to $60k and @ R15 that evens out around the R900k mark.

If it was much cheaper, many more would have been brought in.

At the end of the day, the value debate is purely academic. A car is worth what somebody else is willing to pay for it. If it is very cheap then the seller is either desperate or more likely - One should be olfactoring a rodent!

I think what I was trying to achieve with the spreadsheet and calculations was to give a bit more of a accurate costing and showing of costs vs rule of thumb. As shown there are some interesting factors such as Ad Valorem tax which is not a fixed % and hits high value cars but at the same time low value cars have low Ad Valorem costs but high fixed costs like transport land and sea which makes them effectively expensive as well..

These cars at the price points of $20k to $30k are mint you are not going to find much wrong with them at this level let me assure you if you know what you are looking at and after all as I said a +-R20k trip to the US of A will sort that problem out.

There are a lot of cars been imported that we dont just realise. I think the dynamic of forum members here is that of enthusiasts and DIY's. I know I am.. But there are many people who dont want the hassle of restoring a car and would rather buy turnkey and are importing cars.

My motivation is that I am busy with a factory restoration on my 67 fastback which I love doing just as much as driving the car. I have done 3 cars in the space of 3 years one after the next with the 3rd been a complete ground off restoration no expense spared. It gets tiring and was thinking is there a better way.. My next project will be a 63 or 64 T- Bird. They are hard to find in SA and I really really dont want to do a big resto on it when I get round to buying one. I want a good runner with good interior, paint, engine etc that I could drive to cape town without a worry the day it arrives. But I then want to paint it my colour knowing body is good and put air bags on it. For $20k I can get a mint one from the USA which as per my calculations would be cheaper than what I could pay in SA thats if I could find one.

[brennan67]

hi there.lets look at that 67 fastback at 32900 us dollars at our rate of 15.9 and lets say its in california.out going rate is higher than incoming.fact.so it will work out at 16.5.you pay 542850 rands.ship to port will be approx 2000 us and agency fee will be 3000 us dollars.you will pay 4.95 percent card and forex charges.approx 1665 us.to ship will cost approx 3000 us depends on line and sharing etc. you have 42561 us dollars. approx R702225.

UPON ARRIVAL
you will pay customs 29 percent on value of car 157426

Pls let me know how you come by 29% duty as per my search its 20% duty plus Ad Valorem which is on a sliding scale. On this price point 9% so is that how you are working your 29% ?

you will pay vat 14 percent 75999
you will pay clearing agent 12500 approx
if customs inspect 12500 per day demurrage 25000 for 2 days itacand loa permit which can take up to 3 months 6000

yeah this can happen I know but more the exception vs the rule

storage in usa while permits obtained 250 us a month 12000

ways around this cost

u need to buy car first to get permits etc.

total 288925 plus 702225
R991150 south african rand

that is now the figure you will pay realistically for that 32900 fastback
those are actual costs that you will pay leaving out all the hidden costs that creep up like sudden hyster use,sudden offloading charges,use of their offloading area if u dont have one etc etc

i hope this sheds more light on this very debatable topic
tim

Thanks Tim for your input and calculations they are valid no doubt !

[Buckaroo]

I know from experience that the shipping costs in the figures bandied about are a bit light - with the current exchange rate we work on R100k shipping cost per vehicle because most cars are miles away from the port and the inland travel costs are very steep - we've paid up to R70 000 on inland transport for a vehicle and you also pay VAT at the end of all the costs - ie all the freight - not early on as per the spreadsheet.That alters the end cost a huge amount.
The biggest issue that is ignored here is that very real fact that at present irrespective whether you have an ITAC permit, the NRCS will not issue you with an LOA to register - no LOA - no papers!.
And of course what is also ignored in the numbers is that the imported vehicle has to RIGHT HAND DRIVE - factor in that cost.
Suddenly those ridiculous local Mustang prices aren't so ridiculous after all.
And of course it is sight unseen.
Remember and with the greatest of respect - most of you - save Tim - are theorising about something you have never done recently in practice - so the old adage applies - great in theory but never works in practice. Note all the points Tim made about all the hidden costs which really add up and are never normally factored in. Look at what he says a $32k car will land you at plus the LOA ISSUE AND OF COURSE EXTRA COST TO CONVERT TO RHD.
But forgetting all this - look at the $20 00O Coupe in the example - Bryce has a coupe for sale here registered etc and you can look at it before you buy for almost the same as as the understated price ( as I have said above) that the speadsheet gives you so.... ????
PS Brennan - we have a 57 T-bird under resto in the shop just along the road from you!!:)

[TIMOTHY MUDALI]

totally agree

guys cant seem to register their vehicle easily

[ZA Perana]

Suddenly those ridiculous local Mustang prices aren't so ridiculous after all.

Well that's for another debate.

[Burnthosetyres]

I haven't imported a car yet, might give it a bash one day. What I can tell you is my Chevelle is a local car, was on e Natis. Car has been finished a year, and still eating for paperwork. My bus was on e Natis, but license fees behind 10 years, and previous owner lost logbook, eventually got license sorted out last week after about 11 months of headaches.... In future I will not buy another car with no papers. I will also pay a bit more for the right car where all the legal boxes are ticked. It is such a ball ache dealing with our inept government departments. One has to add serious value to ones time wasted!

I can only imagine the joys of registering an imported car ....

[johan wepener]

I have said it a long time ago,here on this Forum--- experience have dictated that I will never

ever buy a vehicle without papers. I will also advise others against it.

Johan

[Buckaroo]

Len, you don't want to know - I could fill a book with the stories - the latest from Traffic is that the original USA Certificate of Title is "not the logbook" and is therefore not proof of previous foreign registration .....eishh .... now try to argue that with somebody who can barely speak English.....this has been going on for weeks....

[brennan67]

Interesting comments guys...

What I would say however is that its been done and Buckaroo whilst you do say its hard and impossible you are indeed doing it yourself as a business right ? So it can be done and you are doing it so surely its not impossible to do...

I fully understand and respect that its your business and business is there to make money so whilst not easy and you have the know how it is indeed possible..??

The biggest issue that is ignored here is that very real fact that at present irrespective whether you have an ITAC permit, the NRCS will not issue you with an LOA to register - no LOA - no papers!.

But are you not importing cars and getting LOA ?