Costs

What importing an American car actually costs

There is no single number — it moves with the vehicle, the port and the date. What does not move is how the costs are built up, so here is every line, and how the taxes are calculated.

Why we do not publish a headline price

Plenty of importers advertise a figure like "from £1,995". It is technically true and practically useless: it covers the shipping leg only, and the taxes — which are usually the biggest line — depend entirely on what you paid for the car. We would rather quote your actual vehicle than advertise a number you will never pay.

Every line on an American import

Cost How it is worked out Notes
The vehicle Purchase price What you pay the seller or the auction, plus any auction fees.
US inland haulage Varies by distance Collection from the seller or auction yard to the export port. The further inland, the more it costs — which is why we ask for the ZIP.
Ocean freight Varies by port and method Container or roll-on roll-off. Container is more protective and usually dearer; RoRo is cheaper but the vehicle must be driveable.
Marine insurance Percentage of value Cover for the crossing. Quoted against the declared value of the vehicle.
Import duty 10% of vehicle value The standard rate for a vehicle from the USA. Nil where a vehicle over 30 years old qualifies as historic (and import VAT drops to an effective 5%).
Import VAT 20% Charged on the vehicle value plus shipping plus the duty combined — not on the purchase price alone.
Customs clearance & NOVA Fixed fee The customs entry and the NOVA notification to HMRC, without which the DVLA will not register the vehicle.
IVA or MOT Fixed fee IVA for vehicles under ten years old, MOT for those over. We have our own IVA lane, so this is not subcontracted.
Modifications Varies by vehicle Headlights, speedometer and rear fog lamp are the usual ones. Newer vehicles tend to cost more to convert than older ones.
DVLA registration Fixed fee + first registration The registration application, the V5C and UK plates.

How duty and VAT stack

The order matters, and it is where most estimates go wrong. Duty is worked out first, on the vehicle value. VAT is then charged on the value, the shipping and the duty — so you pay VAT on top of the duty, not alongside it.

An illustration of the method on a £20,000 vehicle with £1,500 of shipping. These are not our rates — they show how the two taxes combine.

  1. Vehicle value £20,000
  2. Import duty at 10% of the value £2,000
  3. VAT is charged on value + shipping + duty £20,000 + £1,500 + £2,000 = £23,500
  4. Import VAT at 20% of that figure £4,700
  5. Total duty and VAT £6,700

Note that £6,700 is more than 30% of the £20,000 purchase price. That is the compounding at work, and it is why a flat "30%" rule of thumb under-estimates the bill. Shipping, clearance, IVA, modifications and registration sit on top of this.

When you pay less

The 30-year historic vehicle rate

A vehicle over 30 years old that meets HMRC's historic criteria — broadly, original specification with no major modification to the engine, chassis or bodywork — may qualify as a collectors' item. That means no import duty at all instead of the standard 10%, and import VAT at an effective 5% instead of 20%.

It is assessed vehicle by vehicle, not by age alone. We check eligibility before you commit to a purchase, because a modified classic can fail the test.

Transfer of Residence

Moving to the UK with a vehicle you already own can remove duty and VAT entirely, provided you have lived outside the UK for more than 12 months and owned the vehicle for more than six months. It is claimed through a Transfer of Residence application to HMRC.

It is a relief on a move, not on a purchase — buying a car shortly before relocating will not qualify.

Returned-goods relief

A car that was previously registered and used in the UK, taken abroad and now coming back within the qualifying period can have duty and VAT waived, provided you can show it is returning in the same state it left.

This is why the quote form asks whether the vehicle was ever UK-registered. We handle the HMRC evidence trail.

Common questions about cost

How much is import duty on a car from America?

Import duty is normally 10% of the vehicle value for a car coming from the USA. A vehicle over 30 years old in original specification may qualify as a historic vehicle instead: no import duty, and import VAT at an effective 5%. It is assessed vehicle by vehicle against HMRC criteria.

Is VAT charged on top of the duty?

Yes. VAT at 20% is charged on the vehicle value plus shipping plus the duty combined, so it is calculated on top of the duty rather than alongside it. This is why the total tax is more than a flat 30% of the purchase price.

Can I avoid duty and VAT altogether?

In two situations. Transfer of Residence relief can remove duty and VAT if you are moving to the UK, have lived outside the UK for more than 12 months and have owned the vehicle for more than six months. Returned-goods relief can apply to a car that was previously UK-registered and is coming back in the same state it left. We check both before you commit.

Want the real number for your car?

Send us the vehicle, the price and where it is. You get an itemised quote with every line above filled in — usually the same working day.

Get my quote Call 01332 810442