The Ins And Outs Of Cars In Japan

[m3gtr]

It may be a repost but i dont remember seeing the answer to the question im about to ask elsewhere.

Im about to buy a Merc worth roughly 3.5 million Yen. It will be kept here as per the usual rules concerning personal imports for a year and then shipped out. Thats only scratching the surface i know so if you can help me out, im all ears.

Im concerned on a number of levels.

Firstly, suppose i do pay 3.5 million on the car. What kind of taxes would i have to pay on this, if any, come tax time next year?

Is there an export tax or some such tax that i may not be aware of? Will the Japanese govt. tax the crap out of me for exporting this car? Any ideas or experiences?

Secondly, concerning the LCT. If i purchase the car for 3.5 mil, do i still have to pay LCT? What price does the Australian government go by when determining this amount? Here or there? If the threshold is around 56K AUD, then i wouldnt have to pay any LCT tax, right?

Thirdly, How much is good coverage for a vehicle like this in Japan? Where are there organizations that can cover the vehicle, national or private? Any suggestions?

Figures if you can supply them would be great!

If i decide to go through a dealer, i have seen them advertise cars at lets say 3.5 million Yen. What is the ACTUAL price i would end up paying to get it on the road? I have a suspicion its more than that. Taxes from dealers maybe?

Also, ballpark figure if you know, of what it will cost here for a year and then, what id need to pay to get it on Australian roads.

If you can point me towards a good carrier and insurer that would help a lot too.

Importantly, ive heard a great deal about wanker wharfies wreaking havoc on cars at the docks. What kind of risk am i taking with these animals? Do they respect mercs more than they usually would a different make? How high is the chance theyll try to rip out the navi or something else thats easily removed?

How can i protect against this?

The car will be more than likely purchased from a dealer. I am sure at least that this will be easiest when it comes to handling paperwork and all associated headaches.

It will also have shaken for at least a year.

Sorry for the 20 questions but if any of you guys and gals have anything to tell me please be my guest and let me know anything that may help me in organizing this transition.

The car im looking at purchasing is a 2001-2002 CL 500.

Tanks in advance!

[m3gtr]

here is a perfect example of the car i am eying.

http://www.wintel.co.jp/mercedesbenz-cars/415-1_300.html

[m3gtr]

33 views and not one reply? What gives?

[Beer Baron]

1. Is there an export tax or some such tax that i may not be aware of?

2. Will the Japanese govt. tax the crap out of me for exporting this car?

3. Secondly, concerning the LCT. If i purchase the car for 3.5 mil, do i still have to pay LCT? What price does the Australian government go by when determining this amount? Here or there? If the threshold is around 56K AUD, then i wouldnt have to pay any LCT tax, right?

4. what id need to pay to get it on Australian roads.

5. If you can point me towards a good carrier and insurer that would help a lot too.

6. Importantly, ive heard a great deal about wanker wharfies wreaking havoc on cars at the docks. What kind of risk am i taking with these animals? Do they respect mercs more than they usually would a different make? How high is the chance theyll try to rip out the navi or something else thats easily removed?

7. How can i protect against this?

8. The car im looking at purchasing is a 2001-2002 CL 500.

1. no export tax

2. no they wont. the australian government will for importing it though.

3. you wont need to pay LCT on a 3.5m car. pretty much anything under about 4.5m will be beneath the LCT threshold.

4. you will need to have the VIAs filled out and have it engineer inspected and blue slipped. Hard to say what if anything will need to be changed (most likely nothing). That will cost about $500-$600. then in NSW you have greenslip at about $450, rego at $250 and stamp duty at 3% of the value of the car.

5. Mitsui OSK line is good. NYK line is also good. in fact really the only line i've had trouble with is kiwi car carriers. they couldn't organise a root in a brothel.

6. I wouldn't stress about it too much. yes it can be a problem at some ports but it's not as big a deal as some people will make out. no they won't respect the merc any more than anything else. unlikely they will pinch the navi or anything for that matter but yes there is a small risk. wharf security is generally tighter these days (result of world terrorist threats) and a side effect of this is decreased theft too.

7. you can't. I mean don't leave obvious easily stealable stuff in place. that's about it.

8. i'm still not convinced it's the best choice if you are buying purely for export. I would reccomend just buy a car you want to own and drive. then after a year is up export it back. rinse, repeat, enjoy.

[m3gtr]

Thanks Richard,

Very useful information. Its going to be a Merc. That much i am sure of.

Im tossing up between a few different models. CLK, E series, CL500 or an S if i can get one with a 5 liter - all around 2001 - 2003. I can understand when you say i should buy for enjoyment and that is ofcourse one of the primary reasons but the other is to make enough coin to put back into the next one.

Surely a merc worth 3.5mil here is worth at least 60k there?

Yes, yes, enjoy, rinse and repeat.

Thanks again.

[Edge]

Whats with the rinse repeat, don't you have to live there as a resident for 12 months not just own the car there for 12 months to qualify for private import?

you can get insurance against the ship sinking

[m3gtr]

Whats with the rinse repeat, don't you have to live there as a resident for 12 months not just own the car there for 12 months to qualify for private import?

you can get insurance against the ship sinking

You may not have known it but Richard was saying that because ive been here for more than 3 years i should have done it 3 times already!

1 car every year if i play my cards right each time.

Thanks for the tip on shipping insurance.

[Beer Baron]

yeah, my point is from here on in you may as well do 1 per year. just buy cars you enjoy then send them back after a year. I would aim to recoup your money every time (that way you have a free car all the time) and if you make a profit, it's a bonus. if the car is purely for the profit then start looking into something special/rare. one of those 22B WRXs would be a winner for sure.

yes, you can take out what is called general average insurance. this will pay out if the ship sinks with your car on it, and will also cover your share of the salvage cost. if a ship sinks with your car on it, not only will you lose the car, but you are also liable for a share of the salvage operation. general average protects you against that, but to be honest I wouldn't bother unless it's very cheap. not very often that car carriers go down. and the only shipping insurance I've had the displeasure of dealing with was not worth the paper it was written on.

[m3gtr]

Thanks for the heads up Richard. A 22B huh? hmm. I see a grey one parked near my house almost every day. I wonder if the owner would be willing to part with it?

Id have to be a negotiating pro to pry it out of his hands im sure. Ive got my heart set on a merc though. 5 liter, leather everything, solid build, great resale and ofcourse brand recognition...

I know its not a hard core drift or track or strip warrior but itll do the job very well for a year, without a doubt.

[m3gtr]

S204? not a 22B but its similar..

http://page10.auctions.yahoo.co.jp/jp/auction/m49868006

[m3gtr]

found one!

22b with 30 odd Kays on the clock...

http://www.goo-net.com/used/spread/goo/19/...0070627003.html

its 45 Thousand though... I cant even imagine what it would fetch in Oz.. But it would be the rarest Subaru on the road without a doubt. Just the thing i need...a thief magnet. It would probably get flogged within a week. Maybe not flogged but keyed or dented or egged..or a combo of the above...

[Beer Baron]

yeah it's hard to say what it would be worth. there were only 3 or 5 in aus to begin with, and I think at the time none could be road registered. since then I think one or two have come in as personal imports or possibly race use only. very collectible car for sure.

[HOSTILE]

I reckon Autostyle has had a 22B for sale here in aus for some time at around 100k aussie.

[m3gtr]

these wouldnt happen to be the ones you are talking about?

one is road registered and the other doesnt have VIN numbers...

http://endeca.carsguide.com.au/w6.0-search...080001%20200000

[m3gtr]

i dunno...its a bigger risk, isnt it? Not to mention stretching 10 thousand more for it..

Dont know how the wife will react to this one...

[Beer Baron]

yeah, definitely a risk. I wasn't saying definitely buy one, it was just the first example that popped into my head of a desirable car that cannot be imported by another means for road use (ie not pre 89, not SEVS elligible, not imported in full volume). I know NSX has been a successful one for other personal importers.

[m3gtr]

I can see the appeal in it but if its rarer it will be harder to get rid of.

Im not considering an NSX. Ive heard some bad stories from people who have imported them but you seem to have heard good ones.

I believe the merc is a safe bet. A solid idea and they can be had very cheaply and hold an excellent resale value and most importantly, very often with under 30 thousand kays on the clock..

Even taking into account that after i pay 40 k to keep it here and another 5 to 6k to get it there, plus another 5 k to be sure, then market the thing according to current values - and then lopping off another 5 to 10 because its a grey import, i should still be way ahead...at least 10 - 15k...

something thats achievable with a car like a 2002 E500 or a 2004 CLK 320 ( convertible preferred ), id argue.

Edited March 11, 2008 by m3gtr

[Blitz]

found one!

22b with 30 odd Kays on the clock...

http://www.goo-net.com/used/spread/goo/19/...0070627003.html

its 45 Thousand though... I cant even imagine what it would fetch in Oz.. But it would be the rarest Subaru on the road without a doubt. Just the thing i need...a thief magnet. It would probably get flogged within a week. Maybe not flogged but keyed or dented or egged..or a combo of the above...

There is a 22B on carsales at the moment for over $100k.

While unique, and collectable, I don't think it would be a very easy car to sell in Aus to be honest Adam.

[m3gtr]

There is a 22B on carsales at the moment for over $100k.

While unique, and collectable, I don't think it would be a very easy car to sell in Aus to be honest Adam.

I like the idea of having a car that rare but id be struggling to disagree with you on that point Nick. I wonder how long the current owners have been trying to sell... but... what if it was priced right??

[tbag]

autostyle have had that 22b for a while, maybe bout a year now.