An imported JDM car can make an excellent first car, but not every teenager or young adult has the money in their savings account to cover the import tax and other fees that come with buying and shipping a car from Japan.
Fortunately, there are ways to finance your purchase to get behind the wheel of your dream JDM without going into major debt. Here’s how to finance an imported JDM car and still have money left for gas!
Sourcing the car
When you have a car in mind that is being sold by a private seller, your best bet for buying jdm cars for sale will be to source it yourself. You might have heard of people paying more than $10,000 for their first car! These are usually cars imported from Japan or Australia.
The most common ones are Mitsubishi, Nissan, and Toyota, but there are other brands. The key reason you should purchase these is that they offer more value than they cost.
This means if you’re looking to buy cheap jdm classics from JDM Sport Classics, then it will not be a problem because, after some work, it can turn out as something good and worth the money.
Figuring out your Budget
Before buying any car, it’s important to consider both fixed and variable costs. For example, you can calculate depreciation by dividing your purchase price by 36.6% (the average number of years vehicles are kept before being sold).
But other things like gas, insurance, and repairs are variable and dependent on how much you drive or race your car. To finance a jdm car for sale accurately and adequately, determine how much you can spend every month.
Finding a bank for financing
Lending in America is not a straightforward process, and neither is obtaining financing for a car imported from Japan. Different banks have different lending policies and may be hesitant to finance foreign vehicles; others may view them too risky.
In either case, it’s best to find a bank that has previously financed imports. If you can’t get approved by any local lenders, your next-best option is an online bank or credit union that offers to lend nationwide.
These institutions tend to have looser lending requirements, so they’re an excellent place to start looking for financing options if you’re unable or unwilling to borrow money locally.
Preparing for Insurance
If you have already purchased a car that is now sitting in your driveway, you will want to look into buying auto insurance for it. A used car can be expensive and hard to insure, depending on where you live.
Many people opt for insuring their vehicle with their existing car insurance policy. However, if your current insurer does not cover classic cars or requires an excessive premium, shop around for better coverage and terms.
Importing the Vehicle
Before you can even consider importing a vehicle, you have to be sure it’s legal for sale in your state. Each state has its own rules and regulations on vehicle imports. In some cases, if you don’t live near one of the major ports of entry (such as Washington State or California), you may have to rely on a dealership that specializes in import vehicles.
However, generally speaking, any dealer can help you with imported cars so long as they’re legal for sale in your home state. Once you find a dealership that has what you want available, they’ll submit all of your necessary paperwork directly to customs agents so they can issue a ruling on whether or not your car is eligible for importation into America.
Hiring Shipping Companies (Freight Forwarders)
If you have a lot of money and don’t mind doing all of your work, or if you want to do something completely DIY, then shipping your car can be as easy as hopping on a plane and driving it home. (Hint: This probably isn’t going to happen.
It is also probably not legal.) On top of that, there are many things you need to know about shipping a car between countries. The first step is finding someone who does it for a living and can take care of everything from beginning to end; these people are Freight Forwarders or Shipping Companies specializing in shipping items internationally.
Shipping your Vehicle
This step in importing a car is one of the most exciting! The vehicle will be picked up from its origin country, shipped across seas, and hopefully arrive on your driveway. While you’re waiting for your car, it’s important to ensure that it has been properly stored and insured while in transit.
Unpacking and Inspecting your Vehicle
It’s possible you received your vehicle already unpacked from its crate, which means it’s ready for inspection. However, in many cases (especially with older vehicles), customers will receive their car in a wooden or cardboard crate that protects it during shipping.
Unpacking your vehicle can be a time-consuming process, and depending on how often you intend to drive your new car, you may decide not to do it yourself. This is especially true if you have limited access to power tools or experience working with cars.
We recommend paying a local mechanic $200-$300 per day (depending on where you live) and having them unpack, inspect and ensure your car before driving off in it.
Application Process & Requirements
The application process for financing is nearly identical whether you are trying to purchase a new or used car. The first step is getting approved for a loan, which requires providing some basic information about your financial situation and employment history.
However, once you’ve gone through that process, your next step may vary depending on whether you are purchasing a new or used vehicle. If you are purchasing a used car, it will likely be financed by a bank or credit union rather than through an auto dealer; in general, it may be easier to secure financing from these sources than through dealerships, but keep in mind that most banks do not have significant experience with importing cars.
Eligibility Criteria for Car Loans in Singapore
There are many car financing institutions that you can choose from. The criteria for qualifying for a car loan will vary from one company to another. These factors include your income, employment status, and past credit history. Some other important factors include:
- Whether you own or rent your home.
- Your existing debt obligations and any delinquencies on your existing credit accounts.
- Length of time in the U.S.
- Your financial assets.
- Whether you have any guarantors who can cosign on loan with you.
Ready to Pay your First Loan Payment?
When importing a used car from Japan, you can finance with little or no credit history using Japanese banks like TD Bank or SunTrust. Once you receive your loan amount, get your checkbook ready.
After all of your payments are made on time and in full. You’ll be in good standing with these two banks specializing in financing jdm cars for sale.
It’s very rare for a U.S.-based bank to offer such loans, so having both TD Bank and SunTrust as viable options makes it much easier to get started importing an older Japanese vehicle.
As long as you have sufficient income verified from your employer plus enough personal funds to pay at least five monthly payments upfront. You can expect financing options from these banks that aren’t available anywhere else.
