Hurricane Sandy has been largely featured on our news screens over the past few days, and it is now thought to cause a significant rise in the price of used cars in America.
Not only has the storm destroyed homes and livelihoods on the east coast of America, but thousands of new and used cars too. The number is thought to be around 250,000 used vehicles alone in the most affected areas, according to the National Automobile Dealers Association, with further tens of thousands of new vehicles destroyed at dealerships and storage facilities. The full extent of this is yet to be heard.
This is set to cause a rise in used car prices across seas from around $700 to $1000 in upcoming months. For those looking to ship their dream car across from the US – perhaps a rare model or a classic car – or to get a cheap deal on American made cars, this can be disheartening. When importing a car from the US there are a few things that you need to do for the car to be legally allowed into the country and to ensure the car is road worthy and insured in the UK.
Firstly if the car is over 10 years old it needs to undergo a Single Vehicle Approval Inspection and an MOT to make sure everything is working properly and it is up to the UK’s driving standards. Further modifications will need to be made to the car before it can be driven on UK roads and classed as road legal. Any relevant tax, duty or VAT must be paid for the vehicle as well as specialist insurance for your imported car. Taking into account the current exchange rate of £1 to $1.50 the savings you would make on buying a car overseas would be negligible after the cost of importing the car have been taken into account. This teamed with the increase in American car prices because of their recent disaster suggests it would be more beneficial to purchase your car from the UK.