For years, importing cars from the UK to Ireland was the go-to choice for Irish dealers. Before Brexit, the process was straightforward: purchase a car, drive it across the border, pay Vehicle Registration Tax (VRT), and have it on your forecourt within days. This simplicity meant that sourcing cars from Japan was rarely considered.
However, Brexit introduced significant challenges to this once straight forward reclaim system. Customs clearance, duties, VAT, and additional bureaucracy have made UK imports more complex and less appealing. In response, many Irish dealers have turned their attention to Japan as a potential alternative.
At MHH International, we’ve been selling cars globally since 2009 and sourcing directly from Japan since 2014. Our experience has revealed both the advantages and frustrations of importing Japanese vehicles. Four years into post-Brexit challenges, many Irish dealers are now re-evaluating their buying routes. Should they persist with Japanese imports or revisit the UK market? Here’s a comprehensive look at the factors to consider.
Time to Receive the Car
UK Imports: With UK purchases, cars can be on your forecourt in as little as 2 to 10 days, depending on transport methods. This speed allows for rapid restocking and better responsiveness to customer demands.
Japanese Imports: In contrast, importing from Japan can take up to 4 to 6 months due to shipping times, customs clearance, and logistics. This extended timeline makes stock planning more challenging, and forecasting sales over such a long period becomes much harder.
Price of the Car
Japan: For older or “cheap and cheerful” models, Japan often offers better pricing. For example, a 7-year-old Range Rover or Mercedes is likely cheaper to source from Japan.
UK: However, for newer European brands like BMWs or Range Rovers, Japan is often more expensive. A 2-year-old BMW or Range Rover will likely cost less in the UK than in Japan.
Car Condition
Japan: Japanese cars typically have lower mileage, with many vehicles showing minimal use. However, they are often purchased through wholesale or auction markets, where cars are sold in their pre-prepared condition.
UK: UK cars, on the other hand, are usually prepped to a retail-ready condition before sale, saving dealers the additional cost of preparing the car themselves.
Car Specification
Japan: Japanese cars often come with incomplete specification details. While auction sheets and mechanical reports provide some information, they lack the clarity and precision of UK spec sheets, leaving some room for interpretation.
UK: Cars from the UK are supplied with detailed and transparent specifications, making it easier for dealers to understand what they’re buying.
Language and Controls
Japan: Japanese vehicles are often fitted with controls and software in Japanese, which can be partially but not entirely converted to English. These can pose challenges for both dealers and customers.
UK: This issue does not exist with UK imports, as all cars come with English settings by default.
Availability of Parts
Japan: Finding parts for Japanese cars can be tricky. Many forums highlight difficulties in identifying the correct parts using a Japanese car’s chassis number. This is a potential challenge when servicing or maintaining the car before sale and can lead to frustrations for your customers post-sale.
UK: Parts for UK cars are readily available, and their identification is straightforward, making servicing and customer support much easier.
Market Demand in Ireland
Understanding your local market is key:
*UK Cars: UK imports tend to align more closely with Irish buyer preferences in terms of trims, specs, and brands
*Japanese Cars: Unique or niche Japanese models might appeal to urban customers or younger buyers looking for affordable, compact options.
Hidden Costs
Japan: Importing from Japan often involves auction fees, shipping insurance, and currency exchange fluctuations, which can increase the overall cost and fluctuate over time. This makes operational costs harder to manage and track when the buying and import takes several months from start to finish.
UK: Post-Brexit duties, customs clearance fees, and VAT add their own financial burdens, but these costs may still be easier to calculate than Japan’s layered expenses.
Warranty
Japan: Japanese cars are unlikely to come with any warranty, which can be a dealbreaker for some customers.
UK: Cars supplied within the EU typically retain their European warranty coverage, whether it’s a 3-, 5-, or 7-year warranty, giving peace of mind to both dealers and buyers.
Resale Value
UK: UK cars often retain higher resale value in Ireland due to their familiarity, specifications, and warranty coverage.
Japan: While unique or low-mileage Japanese models may fetch premium prices, others might struggle in the Irish market due to concerns over parts availability or unfamiliarity.
Logistics and Freight Risks
Japan: Shipping cars from Japan involves risks like port congestion, delays, and potential damage during transport. These issues can disrupt timelines and increase costs.
UK: Proximity to Ireland reduces handling risks and ensures faster delivery with minimal logistical challenges.
Insurance Implications and Finance
Japan: Japanese imports may carry higher insurance premiums due to potential difficulties in servicing and parts sourcing.
UK: UK cars are less likely to face such hurdles, often resulting in more affordable insurance for buyers.
Keys
Japan: It’s common for Japanese imports to arrive with only one key, which can be inconvenient for dealers and buyers alike.
UK: UK cars are typically supplied with two keys, reducing potential costs and hassle for dealers.
Post-Sale Support
Japan: Dealers importing from Japan must be prepared to provide additional post-sale support, such as assisting with parts sourcing or retrofitting features to meet customer preferences.
UK: Post-sale concerns are often easier to address with UK imports due to familiar specifications and an established supply chain.
Conclusion
Both markets have their strengths and challenges. The decision to source from the UK or Japan depends on your dealership’s priorities. If speed, transparency, and customer support are key, the UK might be the better choice, even with Brexit hurdles. On the other hand, if you’re looking to save on older models and can manage longer timelines, Japan could be a worthwhile alternative.
Ready to take the next step? Contact us today to explore tailored solutions that make your importing process smoother, faster, and more profitable. Think of us as your hassle free import partner.
