Buying an overseas car online? Ten reasons why it could be a bad idea

AUSSIES will soon be able to buy a bargain new car online from overseas, but experts warn it carries risks. Here’s what you need to know before you start clicking.

Rear view of SUV's new cars

THE Federal government is thinking of letting Aussies hunt for a bargain new car online from overseas. Sounds great right? Here are 10 reasons that could be a very bad idea.

1. Shipping and handling fees at each end can add up to $12,000 in addition to the purchase price.

2. Your new car may not be covered under warranty - so any repairs will come out of your hip pocket.

3. Your new car may not be eligible for capped price servicing deals which are subsidised by local distributors, so routine servicing could cost more.

4. The resale value of your privately imported new car could be much lower than a new car bought locally.

5. Insurance may cost more because the equipment levels and some parts may vary compared to what’s available locally.

6. You may have to pay extra for equipment that is standard on new cars sold locally.

7. You may have to pay extra to change the tyres to suit Australian road conditions.

8. You may have to pay more for replacement parts if they are not stocked locally.

9. You may be off the road for weeks while waiting for those replacement parts that are not stocked locally.

10. You may not be able to get finance — or a competitive finance rate — on a new car imported privately.

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