Table of Content
1.What is a Grey Import Car?
2. What are the regulations for Grey Import Vehicles?
3.Characteristics of Grey Import cars.
4. Why do People buy Grey imports?
5. Challenges and considerations of Grey Imports
6. Grey Import Cars Buying Tips
7.Frequently Asked Questions
1.What is a Grey Import Car?
Imported vehicles in the UK fall under two categories, Parallel and Grey. A parallel import car is a brand new vehicle sourced from Europe, that meets UK government vehicle standards and regulations. However, not all vehicles are imported from Europe. Vehicles sourced from outside Europe mostly Japan, South Korea, Australia and so on are categorised as Grey Imports. Contrary to parallel imports, because they are manufactured outside Europe, they do not automatically meet UK standards, nor their technical specifications equate with exact UK regulations. Their entry into the UK market is subject to additional checks. In this blog, we will discuss in detail Grey Import Vehicles in the UK.
2. What are the regulations for Grey Import Vehicles?
It is important to know the key regulations regarding Grey Import vehicles. Importers must comply with the regulations, in order to resale their imported vehicles in the UK market. Some key regulations are outlined below,
Vehicle Type Approval ( VTA): The imported vehicles must obtain individual vehicle approval (Iva) or Single Vehicle Approval ( SVA) to be considered legal in the UK.
Emission Standard: The emission standard for vehicles is set by the UK government. Every vehicle must meet that standard. Grey Imports are not different to it. All Grey Imports must meet UK emission standards.
Right-hand Driving ( RHD): Grey Import cars must be right-hand drive ( RHD) as long as this is a requirement of the UK government. However, in a few cases, left hand drive may be allowed under certain circumstances. VehicleS such as vintage cars are a good example.
Speedometer display: In the UK vehicle mileage is counted and displayed as miles per hour. Therefore if the Grey Import vehicle has to convert the display method from kilometer to mile per hour. Lighting and Signaling: Grey Imports must have appropriate lighting and signaling systems that meet UK requirements.
Documentation and Fees: Importing a Grey car not only requires compliance with the customs requirements but also proper documentation. Apart from custom clearance, and paying VAT, vehicles must be registered with DVLA to get V5C.
3. Characteristics of Grey Import cars.
A Grey Import car means it was manufactured outside Europe. Therefore their characteristics are distinguishing. They may have unique designs, exotic materials, unconventional engine configurations, often advanced technologies and features. In order to comply with UK standards and regulations, these vehicles are significantly modified from their original model. Such a modification is necessary due to tougher emissions and safety regulations in the UK. Importing these vehicles in the UK is not simple. Apart from meeting UK regulations, the importer has to pay excise duty, and shipping costs and follow other procedures to register the vehicle in the UK.
4. Why do People buy Grey imports?
Financial reasons : although not all Grey Imports are cheap, often they offer cheaper options for the same model sold locally. Despite importers spending a considerable amount for modifications, excise duty, shipment cost and legal procedures, they can afford to sell it at a cheaper price than those of the local market and make a reasonable profit. It is possible because they were bought at a significantly lower price. Adding other costs does not affect the business.
Uniqueness: Grey imports offer customers unique models and features, which are not available in the UK market via local dealers. Some drivers find the imports superior to the locals in terms of performance and build quality.
Customisation: Some consumers give it a second thought as they want to customise specifications, which is not possible with local channels.
5. Challenges and considerations of Grey Imports.
5.1). Lack of manufacturer warranty and support: Grey Imported vehicles are initially manufactured for the local market. Therefore, their technical specifications and emission standards do not comply with their local authorities’ regulations and manufacturers. When such a vehicle is selected for exporting in the UK, buyers are unlikely to enjoy the manufacturer’s warranty and support.
5.2). Availability of spare parts and servicing: Lack of spare parts and repairs is another issue with Grey Imports. Since these cars were not made for the UK market initially, their spare parts are frequently available in the UK market, same about their services and repairs.
5.3). Insurance and resale value implications: The Grey imported cars do not always meet UK safety regulations and carbon emissions standards. Due to high emissions, these vehicles suffer high road taxes and insurance. Which also affects their resale value.
6. Grey Import Cars Buying Tips.
Potential buyers should exercise caution and undertake a rigorous inspection Before buying a Grey Import car. The following tips are crucial for a potential buyer while buying such a car.
6.1). A thorough research of the vehicle and its specification is highly recommended. Emission standards and technical specifications of a vehicle made for the original market may differ in the UK. Therefore the buyer has to enquire, and differences are resolved.
6.2). Even if a vehicle is facilitated up to UK standard, an imported vehicle does not attain the automatic right to drive on UK streets. Imported vehicles have to be registered with DVLA. The buyer has to verify all documents. It is important to check the vehicle is imported following the laws, and regulations and paying accurate taxes of the UK.
6.3). Buyers also need to consider potential servicing and maintenance costs. Being a Grey Import , the vehicle already put the keeper in jeopardy of spending more money for repairs and parts than those of locals.
6.4). Another important issue to bear in mind, buyers should check the possible insurance cost of the vehicle. A Grey Import car undergoes several modifications in order to meet UK standards, which brings an adverse effect on insurance costs. Insurers are less likely to offer cheap insurance compared to local cars.
6.5). Seeking advice from an expert is a great option.
Frequently Asked Questions:
How do I know my car is a Grey Import?
You can check it from your V5C log book . You can also find it by checking the vehicle history.
Is it wise to buy a Grey Import car?
Depends on the buyer’s demand . If the vehicle meets the individual’s requirements then it should be fine.
How can I find better insurance for my Grey import car?
It is important to shop around and compare insurance quotes from different providers, as the cost of insuring a Grey Import car can vary widely. Additionally, it is also important to provide accurate information to the insurance company, including the car’s history, service records and any other relevant information, this will help to get a better and more accurate insurance.