Does it work to import a car yourself?

Cars can cost twice the price in Australia than the US, even when you factor in exchange rates and state taxes.

For example, a 2019 Porsche Panamera GTS costs just under AUD$400,000 to purchase here in Australia today, while it’s less than AUD$200,000* in the US at the current exchange rate.

Importing a car yourself, although a long and complex process, can theoretically save you some serious cash.

Here’s what you need to do and how much it might cost.

Start with the import-ant steps (see what we did there?)

First, confirm you can in fact import your dream machine then apply for vehicle import approval. Once that’s approved, arrange customs clearance and transportation—this is when you’ll have to cough up the custom duty, GST and the Luxury Car Tax (LCT) if applicable.

If it’s an older model, make sure it’s free from asbestos. You’ll also need to arrange a quarantine inspection for the import once the car arrives (bureaucracy, huh?).  

After all that’s said and done, get your car approved for Australian roads, register the thing and drive off into the sunset.

So what are the costs?

Like a greedy onlooker at Antiques Roadshow, here’s the hard numbers you’ve been waiting for.

If the car doesn’t incur LCT, but is younger than 30 years old, you’ll incur a five percent duty, while classic collectors are exempt.

The LCT currently stings buyers 33 per cent on new cars valued over $66,331, and $75,526 for fuel-efficient models.

The total cost to import a luxury car, for example, is the sum of LCT + GST + Duties and other costs including transport.

To calculate the LCT when you’re importing a new luxury car: (LCT value − LCT threshold) × 10 ÷ 11 × 33 percent. The LCT value is the customs value, transport costs, insurance, customs duties, and any payable GST.

So, a 2019 Porsche Panamera GTS from the US valued at around AUD$200,000* before GST would cost to import:

LCT Value:$200,000 (value of the car) + $20,000 (GST) + $13,000 (estimated transport costs and 5 per cent import duty) = $233,000

LCT: $233,000 (LCT Value) − $66,331 (LCT Threshold) × 10 ÷ 11 × 33 per cent = AUD$50,000.69.

Plus, there is a $50 import application fee for all vehicle imports.

So, this would inch the total cost of the car closer to AUD$283,050.

By these calculations, importing the model from US yourself is some AUD$100,000 cheaper than the current driveaway price of a 2019 Panamera GTS sitting in your local dealer.

That’s plenty of wiggle room for any modifications and permits you might need to get your prize road-worthy.

Of course, drive-away prices and incidental costs are subject to change. When importing a car it’s not worth cutting corners, so dotting your I’s and crossing your T’s are imperative if you go down this path. The red tape process can get convoluted, so seek out expert advice—but be wary of any broker fees that might jack up the overall spend.

*Rate as of 13/5/2019