Buying an engine from USA

[ChrisL]

I’m in Australia and am in the process of ordering a new crate engine from the USA. The seller, I am told, is reputable, but I am finding the whole process all a bit daunting given the distance and the time difference.

I’d like some opinions if I may from the local USA people.

Firstly, the sorts of prices that I am being quoted to ship to California is about $400. Does this sound correct? To ship it the rest of the way to Australia will cost me $275!!!

Secondly, I am told that if I (or my shipping agent) collect the engine directly from their warehouse, I will be required to pay a state tax. Is this correct, and if so then why isn’t it payable if I ship to California? How much is the state tax in Ohio on a $3,200 motor?

Thirdly, although I’ve asked a few times, I haven’t been able to get a straight answer about payment at the point of delivery. What experience have others had? Am I taking a chance by paying for it before delivery?

Any advice will be gratefully accepted.

[ June 13, 2002: Message edited by: Chris Liokos ]

 

[Ian K]

Chris,

I can only attempt to explain the tax issue.
If you purchase something in state, you must
pay sales tax. If you pick it up in state,
the sale is considered to be in state.
Having it delivered out of state (or even out
of country) exempts you from paying sales tax.
Sales tax is a state tax. Note - most US states
are like this. Some states have agreements
with other states regarding charging sales
tax regardless of destination.

I'm not 100% certain of the Ohio sales tax,
but I expect somewhere around 8%. On $3200,
that's $256. So, unless shipping direct
from Ohio to Australia will run you $420,
it's probably cheaper to have them ship to
California.

HTH,

Ian

 

[Neal]

Chris,

The interstate freight charge seems a bit high at $400. If you pick up the motor within the state you may be subject to local sales tax, even if you are not a resident. That is why we love mail order speed shops as we can order from out of state and have things shipped to use without paying local sales tax.

There are any number of reputable US shops that sell these motors and ship internationally. Companies such as www.jegs.com and www.summitracing.com may be a better source. They will match prices too. Perhaps a phone call to one of these sources would we worthwhile.

Which crate motor,345HP - 302?

 

[Guest]

I just purchased a motor from Downs Ford Motorsports, there was no tax or freight involved. Its been shipped to me from another state. Total cost for this crate engine was $3095. Im sure if you called them they would ship it to your shipping agent with no tax or freight. The engine I bought was a 345hp crate motor part # m-6007-xe3, this is for a gt40. Their phone # 732-3492240, tell them its for export. You can find this engine at the following link:
http://www.thefordsource.com/store/motorsports/motorsports.htm

Check it out.

 

[Guest]

Chris,
I have shipped a lot of different items to europe and have used a container that are twenty feet or forty feet. This you can not do for just one engine, you have to find a good shipping agent that consolidates different things to make up a full load in a container. I would not be afraid to pay a Company like Downs Ford when you order the engine, you have to have your shipper (agent)lined up to give them the address. Pay for it on your credit card, this is the best way to pay and you get the best exchange rate.

 

[ChrisL]

Thanks for everyone’s input. Feel free to give me more advice if you think it’s appropriate.

Malcolm, I tried emailing The Ford Source about a month ago and got a reply three weeks later telling me that they were the accessories department and couldn’t help me. That didn’t fill me with confidence! I could just see myself opening my new $3000 crate from the USA, having arrived 3 months late, and finding a T-shirt with a picture of an engine inside.

Since you’ve given me a phone number though, I might give them a second chance.

 

[Jim Rosenthal]

There has been a fair amount of discussion about the Ford crate engines on this forum. Although it may be more money (not tons but a bit more) you would be better off getting a motor from Gordon Levy or one of the other shops that handbuild motors. There is some evidence that the Ford crate engines are a way for them to get rid of excess parts and that frequently you end up having to change out all the accessories on the engine to get it to fit and work. Good luck.

 

[Steve Toner]

States are only allowed to collect sales tax on in-state sales, so that explains why there is no tax if they ship it out of state. Even if its ultimate destination is out of state (or out of the country!) they will have to collect the tax if you show up at their door...

I found a website that says the sales tax rate is 5% in Ohio, so that would be $160 tax on a $3200 purchase.

As far as shipping cost, it will most likely go by truck on a pallet from Ohio to California. I had an engine shipped from New Jersey to Utah and I don't remember the exact shipping cost, but I think it was more in the $300 range. However, it's going to be based on weight and distance (whereas going from CA to Australia is probably going by ship and there I think the volume is more of a factor than the weight)... I just did a check on the con-way trucking website: they would charge approximately $500 to ship 400 pounds from Cleveland, OH to Los Angeles, CA. So $400 is not outrageous.

 

[Jim Glickenhaus]

FedEX,UPS, and DHL and all ship this directly from Ohio to anywhere in the world and I think if it's shipped out of the US there is no sales tax due. Gordon Levy may be a better bet for an engine and he probably has experience with shipping.

 

[Steve Toner]

Don't FedEx and UPS have weight limits?

 

[Jim Glickenhaus]

FedEX shipped my P4 engine (there's a picture of this engine on the P4 photo thread.

 

[Ron Earp]

<BLOCKQUOTE><font size="1" face="Verdana, Helvetica, sans-serif">quote:</font><HR> States are only allowed to collect sales tax on in-state sales, so that explains why there is no tax if they ship it out of state. Even if its ultimate destination is out of state (or out of the country!) they will have to collect the tax if you show up at their door...<HR></BLOCKQUOTE>

Bot true in all cicumstances. Only if they do not have representatives or sales people in other states. My company is in NC, but we have to collect sales tax in a few others states because I have reps there.

Ron

 

[Steve Toner]

Hmmm... Just checked their website. Normal domestic weight limit is 150 lbs. However, they do ship heavier items overseas.

FedEx International Economy to Australia would be US$3.63 per pound. That's $1452 for a 400 pound package

 

[Steve Toner]

Ron, that's correct. If you have a presence there, they consider it an in-state sale.

I still can't figure out why when I buy something from the Barnes & Noble website, they don't charge me sales tax - have they set it up so bn.com is a separate company from the brick & mortar Barnes & Noble?

 

[ChrisL]

Thanks for the advice Jim.

The main reason that I am going with the crate motor is that it has emissions approval from our authorities here in Australia, whereas the more desirable motors do not. Although there are some tricky little ways that you can get around these regulations they are either risky, ugly, or just plain expensive. I've looked at all the option, but all arguments always seem to bring me back to the crate motor.

Ironicaly, I can quite legaly install one of Gordon's engines the day after registration, but till then... anybody got a good used B50 crate motor they want to sell???

Hmmmmm... for that matter, does anyone want to buy a good crate motor in a few months time... "Little use, Started once only"

[ June 14, 2002: Message edited by: Chris Liokos ]

 

[Guest]

Chris,
I will let you know if all I receive is a t-shirt. Why dont you build your own engine, Im sure Australia has some good machine shops.
Over the last Forty years I have built my own engines for different applications, and also bought engines from GM and Ford with no problems. I look at it as a case by case decision and for me not a hard one to make. However I dont think it is a good idea to spread rumours that are not backed up by facts. GM, Ford and Chrysler have had after market programs going for many years now. At my age I am only interest in engines that are suitable for road use. I dont need the rumble or the stumble at the traffic light.

 

[ChrisL]

To whom it may concern, the comment about the T-shirt was meant as a joke. No malicious intent should be read into it.