When it comes to shipping anything internationally, the cost is a crucial factor in determining the viability of the decision. That is particularly true when it comes to the car shipping cost or any vehicle for that matter. 

Shipping budgets can be blown out of control if you’re not aware of all the costs involved in the process. That is why we decided to write this article highlighting some of the most common hidden costs in vehicle shipping. 

The most common hidden costs that private importers are unaware of are import taxes, cleaning fees, and dimensions. No two quotes are the same so it’s also important to understand what is included and what’s not when comparing. 

Whether you want to import JDM cars or caravan imports, here are a few tips to avoid unexpected costs. 

The Incomplete Quote

You’ve heard of the saying ‘comparing apples to oranges’ right? That is often the case when you’re after a car shipping quote. Because there are many factors at play in international car shipping, no two quotes will be the same. 

That may be partly because a freight agent may hide costs in order to present an irresistible offer. However, it can also be because the freight agent doesn’t provide the full range of services required for importing cars to Australia for example. Therefore, you would need to find other providers to complete the process of car shipping Australia. That realisation can happen once your vehicle is already in the water and you have no other choice.

Lucky for you, there is a simple question you must always ask when presented with a quote. It doesn’t matter if you want to import cars from Japan to Australia or car shipping UK Australia. You must always ask what is included and what is excluded from the quote to complete the full process. 

Luckily for you, Phoenix Shipping is set up to provide a complete door-to-door service if you wish to do so. Regardless, we’ll have a list of inclusions and exclusions from our quote in order to give you a full picture. We’re happy to answer any questions and point you in the right direction for further clarification if asked. 

Import Taxes

Most countries have import taxes on goods being imported into the country. Australia is no different and has a combination of GST, Duty, and Luxury Car Tax (if applicable) payable per vehicle.

Based on the value, you must pay 10% GST, 5% Duty, and 33% Luxury Car Tax if applicable. There is a value threshold for being charged Luxury Car Tax that is currently above $84,916 for fuel-efficient vehicles and $71,849 for other vehicles. 

This charge is paid directly to the Australian Government and it’s understandable that freight forwarders exclude it from the quote. However, you should still be aware of it as it can often be more costly than the cost of transportation. 

Let’s take a look at two scenarios and calculate the import taxes for each movement. 

Scenario 1: Billy is wanting to import car from NZ to Australia that is valued at $50,000. He is also paying $2500 for car shipping NZ to Australia. 

Billy is due to pay $5,500 in GST (10% of GST Taxable Value) and $2,500 in Duty (5% of vehicle value). Thus, costing him a total of $10,000 including taxes when shipping car from NZ to Australia. 

Scenario 2: Grace wants to import car UK to Australia that is valued at $100,000. She is also paying $5000 for car shipping UK to Australia.

Grace is due to pay $11,000 in GST (10% of GST Taxable Value), $5,000 in Duty (5% of vehicle value), and $16,042.50 in Luxury Car Tax (33% on the amount above the luxury car threshold). This means Grace has to pay a total of $37,042.50 including taxes as the cost of shipping a car from UK to Australia. 

Cleaning Fees

One thing that is out of the freight forwarder’s hands is the cleaning fees. The Department of Agriculture is very strict on ensuring no foreign biosecurity threats are imported into the country. That can be things like dirt, weeds, insects, and other foreign substances. The same can be said for people car shipping Australia to NZ and having to deal with MPI over there.  

If the vehicle fails inspection, it must go through biosecurity cleaning with an approved provider. That can cost hundreds and in some rare cases, thousands of dollars in cleaning fees. 

That is why we always recommend to our clients to ensure the vehicle is clean prior to shipping. Whether you import cars from Japan regularly or are shipping a car from Australia to New Zealand, same rules apply. 

Try to leave no rubbish or personal belongings in the car prior to export. In addition, ensure there is no dirt in the tyres or anywhere in the vehicle. It’s best to arrange a professional cleaning service ahead of export to increase the chances of passing the biosecurity inspection. Phoenix Shipping can help arrange one on your behalf, particularly on our most common routes, like vehicle import from Japan.

Dimensions

This is particularly relevant to heavy machinery transport and motorhome importers Australia wide. As is often the case with larger vehicles, freight is charged at a cubic meter rate. 

Costs can skyrocket, the bigger the vehicle is. Thus, in the case of shipping machinery to Australia, costs can go into hundreds of thousands of dollars. 

That is why you must make your vehicle as compact as possible when exporting or importing vehicles into Australia. That antenna on your caravan; best to remove it and avoid thousands  of dollars added to your caravan shipping bill. 

The same goes for break bulk cargo and heavy machinery transport. In some cases, it may be worthwhile to take machinery apart and put it back together at the import location. There are specialised companies who provide this service and Phoenix Shipping can help find a suitable option if necessary. 

Even 1cm can make a significant difference in importing and exporting vehicles from Australia. In one particular case, when importing motorhomes into Australia, shipping via container may be cheaper than RoRo. Thus even 1cm may be the difference between fitting into a container or not.

Conclusion

No one likes hidden fees and unexpected costs. When you are exporting or importing vehicles to Australia, those costs can be in the thousands if not careful. 

From import taxes, failed biosecurity inspections, and dimension-based pricing, costs can add up very quickly. That’s why the first question you ask when getting a vehicle shipping Australia quote, is what is and isn’t included. 

For example, the most common pitfalls we see when someone is shipping car from Australia to NZ are cleaning fees. The same goes for someone importing a car from Japan without being present to inspect it prior to export. On the other hand, when importing classic cars to Australia, many fail to include taxes as part of their decision-making. 

Before engaging in international car shipping Australia to anywhere in the world, it’s best you speak with a professional. Get in touch with Phoenix Shipping, and we’ll gladly be able to help answer any questions.