CAR

If you are a car driver, you will doubtless wish to have your own private transport in your overseas location. There are various options open to you.

Take your present car out with you

This is a good idea if you are relocating to somewhere in Europe which is a driveable distance from the UK. However, you need to consider the age of the car: if it is several years old, it will cost more to maintain, and obtaining spare parts could be a problem. You will also need to make sure that it complies with regulations in the country where you plan to reside, since modification could prove expensive, and check whether any taxes or import duties will be payable. The embassy or consulate of the country in question should be able to give you the latest information.

The Department of Transport leaflet V526 gives details of how to export a car you already own. If you are taking it out for more than a year, when you actually leave you should complete Section 2 on the back of the Vehicle Registration Document and send it to the Driver Vehicle and Licensing Centre in Swansea. You may be lucky enough to get a refund of excess duty paid.

Buy a new car in the UK

If you have sufficient ready cash there is much to be said for purchasing a new car which is more in line with your needs (eg has right-hand drive for continental motoring, is more economical, is more environmentally friendly). It is possible to buy a car in the UK free of VAT provided you export it within six months; your car dealer can provide you with the necessary VAT Form 410.

You should specify where you intend to use the car and the agent will ensure that you get a model which complies with the legal requirements of the country in question. You also need to ensure that there are local agents for the car and that spare parts are easily obtainable.

Buy a new car in the country where you intend to live

This is an option well worth considering, especially if you are planning to live a long way from the UK (eg in Australia or South Africa). Indeed, you may find this works out cheaper than buying in the UK and paying transport costs.

In the past the UK has been one of the more expensive countries in Europe for car purchase, and you may find that you can buy more cheaply in the country of retirement or in a third country, such as Holland or Belgium. Clearly it pays to shop around paying regard to the different pricing arrangements and tax rates.