Avoiding Common Pitfalls in Malaysia Luxury Car Exporting | GVE London – Blog

Exporting luxury cars from the UK to Malaysia is a rewarding but extremely complex procedure. It should come as little surprise to anyone that shipping a motor vehicle across countries on a ship wouldn’t be a piece of cake. Mistakes can happen, and they can lead to delays, fines, or the vehicle becoming a £200k paperweight stuck in customs limbo. So, in this blog post, we’ll discuss these common pitfalls and how you can skip around this.

The Malaysian Luxury Car Market

Malaysia’s car culture is vibrant, and they’re huge fans of automobiles, with a boom in the supercar scene. However, a major straw in the jaw to a full-blown expansion in the market is largely due to the complicated import rules and duties. Luxury cars are not given any leeway and are subject to hefty taxes.

Here’s a breakdown:

Import Duty: Varies based on engine capacity. For instance:

• Up to 1,799cc: 30%
• 1,800cc – 1,999cc: 30%
• 2,000cc – 2,499cc: 30%
• Above 2,500cc: 30%

Excise Duty: Also depends on engine size:

• Up to 1,799cc: 75%
• 1,800cc – 1,999cc: 80%
• 2,000cc – 2,499cc: 90%
• Above 2,500cc: 105%

Sales Tax: A flat rate of 10% applies to all vehicles.

As one can assume by looking at these numbers, these taxes make the cost of a car essentially double in nothing but taxes, which makes a challenge in luxury car export in terms of finding clients willing to bear the extra costs.

That was mistake number one, essentially—tying up with a buyer that doesn’t understand the taxation system.

Read Also: Maximising Profit: Strategies for Successfully Exporting Luxury Cars

Securing the Necessary Approved Permits (AP)

The second mistake we often see individuals making is not researching enough about how a car gets qualified to enter the country. Every country has its own rules regarding which cars are considered safe enough to be driven on public roads and how much they can pollute the environment. These organisations are usually government-regulated. For example, before importing vehicles into Malaysia, you must have an Approved Permit (AP) from the Ministry of Investment, Trade and Industry (MITI). This permit ensures that all imported cars comply with Malaysian regulations. If a vehicle isn’t meeting the standards, it might require modifications to be made at a supercar showroom like GVE London to get clearance.

Assuming All Cars Will Sell

Before you export luxury cars to Malaysia, it is best to do some research on what people want. It is entirely possible that your special edition Aston Martin, which is highly in demand in Europe, might not be as appealing to those in Malaysia. The market is far from stagnant—interests and demands change all the time.

Avoiding Insurance During Transit

The what could go wrong? mentality is exactly what keeps people from getting insurance, but it’s also the main reason why they should. More often than not, things don’t go wrong. If you’ve chosen a reliable shipping company, the chances of your super or luxury car getting damaged are indeed slim—but never zero.

To avoid having to pay the entire bill from your own pocket, in case things do go wrong, it is best to opt for insurance beforehand and not skimp on it. It’s one of those things you don’t need until you do.

Conclusion

Whilst it isn’t the easiest thing in the world, exporting luxury cars from the UK to Malaysia can be hugely beneficial for both personal and financial reasons. We here at GVE London are a supercar showroom that deals with luxury car export. From handling the paperwork to ensuring the car is legally allowed to enter the destination country, we take the entire struggle out of the equation. Give us a call today to learn more about our services. Furthermore, being enthusiasts, we not only perform the usual repairs and service but can work on customisation, modifications and detailing as well. To know more, hop on a call with us today!