How to safely pay for a car overseas

zak · 16th July 2012, 08:28 PM

Hello, I am currently in the U.S. and in the process of putting down a deposit for a car being built in the UK. Although it is not a gt40, I thought there might be a few members with experience buying a kit from overseas. I have looked at a couple of options, but a bond seems like the safest route. I would pay in installments as the car is completed. Does anyone here have experience with this kind of thing? Thanks.

Bill Musarra · 17th July 2012, 06:45 AM

I bought mine from Australia to the U S. Use an escrow account. You both imput financial info, banks etc. Buyer puts money in, selleer then ships, buyer has X number of days for inspection, Satisfied the buyer releases funds to seller, all happy. If dispute arises, can go several ways, arbitration or agreement. I discovered water damage in the engine and he forfited $1500 which came back to me. Both have to agree on the transfer of money at the end or no one gets anything until arbitration. Things are agreed on prior to shipping, like who pays for return if not satisfied etc. etc. Fool proof, safe, and no one has the advantage. Protects seller and buyer. Good luck!!

Bill

Julian · 17th July 2012, 12:39 PM

Are the factory supplying the kit, building it to or is it a separate shop? I would think you are safer with the first scenario, but as Bill suggests Escrow is the best way.

Finding or paying a third party that side of the pond in close proximity to check on physical progress etc. is not a bad idea either.

I assume you are having a roller (minus engine and transmission) built and not a complete car?

Good luck,

zak · 17th July 2012, 12:41 PM

Thanks for the reply, can I ask what financial institution you used to hold escrow? I am not sure if that would be a bank or a more of a specialist group?

Pat · 17th July 2012, 01:46 PM

Why not talk to your bank about a letter of credit. They are common in international trade because the bank acts as an uninterested party between buyer and seller. For example, importers and exporters might use letters of credit to protect themselves. In addition, communication can be difficult across thousands of miles and different time zones. A letter of credit spells out the details so that everybody's on the same page.

Bill Musarra · 17th July 2012, 03:13 PM

Zak,
My response was rather short as I was just leaving for work. I used Excrow.com. They are an online company. Go here to read all about it. https://www.escrow.com/index.asp They spell it out in simple english. It is a simple process and you can't go wrong. They might even remember me as I had one of the longest holds they had encountered at that time. It took several months. You can get your car as fast as you want if you use air freight. I used the slow boat because it was cheaper. I picked mine up at the P.O.E. and saved shipping cost to my door. Good friend had a trailer and we drove down to Savannah and picked it up.(Pick one close to you)
Be sure you read ALL the documentation in the web site. They will answer every question there is about your transaction(a lot of stuff on car buying). They spell out what you need to do from setting the account up to finalizing the deal and what happens if there are problems. They spell out just about every possible problem and how to handle them.
The nice thing about them is that they are impartial and show no bias one way or the other. They represent both of you, and they work to resolve any issues. I highly recommend them.

Bill

zak · 17th July 2012, 09:11 PM

As a matter of fact Lister Bell is making the kit. It will be a roller only. I will also talk to them about this, but it does not hurt to be educated up front. Your ideas have been helpful, thanks. I will let you know how it goes so the thread can be useful to a many as possible.