Parallel Import – justification to ask for price reduction?

Snubber · 17 Mar 2014 at 12:16

Hi,

We currently have our 02 plate VW Golf GT TDI (130bhp) up for sale. Bought it new via an import company – came in via Holland. It is full UK specification, the only difference from the UK model is that a few of the original stamps in the log book are Dutch. Everything else mechanically and cosmetically are the same as one bought through a UK dealer.

Had quite a bit of interest but several people have said that they want a reduction in price because it’s an import. We are talking a 20% reduction in price against what we are asking for.

I can see no justification for this argument and have so far refused to move the price on these grounds. Am I being reasonable? I cannot see how it being an import but with full UK spec would affect anything for the new owner eg insurance, 3rd party warranty etc. The only issue I know about is that a main dealer will not take it as a trade-in – once again for reasons I can’t really fathom out since it is exactly the same as a UK model.

Any thoughts, feelings?

Cheers,

ScoobyDoo69 · 17 Mar 2014 at 12:19

Well it would have been bought as an import because it was cheaper, right?

Therefore you have a car that is now worth less in comparison to full UK cars.

p1RATE · 17 Mar 2014 at 12:20

insurance is often more expensive on imported cars. I have a lot of trouble insuring mine with many insurers just refusing to insure it on the basis of it being an import.

tom_e · 17 Mar 2014 at 12:21

Snubber said:
The only issue I know about is that a main dealer will not take it as a trade-in – once again for reasons I can’t really fathom out since it is exactly the same as a UK model.

Any thoughts, feelings?

Cheers,

That alone seems like a good enough reason as the people that are looking may want a nice simple trade in for a new car in the future but instead will have the extra hassle of selling it off privately.

Jez · 17 Mar 2014 at 12:22

It is surely not actually a UK car even though it is in UK spec? A lot of insurers ask if your car is a UK car and i am not sure that you can say yes to this can you?

Personally, i wouldnt want it at full market value, it will cause hassle come sale time.

rodenal · 17 Mar 2014 at 12:33

I came close to buying a dutch import Mk5 Gti recently - it was up for sale at about 15% less (asking) than a uk equivalent and the guy was still struggling to sell it.

As above insurance treat it as an import, not that it made any difference in my case but this will differ from buyer to buyer. Traders won't touch it and sometimes even dealers can be funny about ordering parts etc, even with the Chasis number.

You paid less for it, so it'll be worth less now even without the hassle factor, which definitely exists.

Think you'll need to accept that it's worth less. The why doesn't really matter tbh

Jez · 17 Mar 2014 at 12:35

Its obvious as to why, i would definitely not pay full market value for an import, UK spec or not. Its a hassle which a used car buyer of a common car doesnt need, and the price needs to reflect that.

rodenal · 17 Mar 2014 at 12:38

Completely agree, all i meant was the actual reason doesn't matter - the market tells you how the price should be set

Jez · 17 Mar 2014 at 12:39

Yep indeed

[TW]Fox · 17 Mar 2014 at 12:39

I'm going to go against the grain here and argue that it has the same value as any other 2002 Golf provided it's as I describe below.

Between 1999 and 2002 it was very common to buy new cars in this way. They were UK spec, RHD cars which were supplied by European dealers. They were declared 'New at first registration' when registered in the UK. Often the only way to tell it was purchased in this way is that the pre delivery inspection stamp in the service book is from a European dealer.

If this is the case with the Golf, it's exactly the same as any other 2002 Golf GT TDI and arguably should command the same value. There are no insurance complications, etc etc.

Where it becomes tricky is if it wasn't declared new at first registration in the UK and was used overseas first. If thats the case, then the posts in this thread are right. If it isn't, then I don't beleive they are.

All Golfs are, of course, imports - they don't make them in the UK!

99% of people buying a 12 year old Golf wont even notice let alone care. This guy obviously has noticed and thinks its a handy bargaining chip. You can't blame him for trying it, i guess.

The V5 will have nothing on it to indicate that it was bought in Holland. If it does, then it's not a conventional new-import.

Haggisman · 17 Mar 2014 at 13:14

[TW]Fox;26017202 said:
99% of people buying a 12 year old Golf wont even notice let alone care. This guy obviously has noticed and thinks its a handy bargaining chip. You can't blame him for trying it, i guess.

*cough*

Snubber said:
Had quite a bit of interest but several people have said that they want a reduction in price because it’s an import. We are talking a 20% reduction in price against what we are asking for.

Clearly it's a bit more obvious than that...

Whether it's a "conventional new-import." is moot; if the insurance costs are higher (as with most imports) and dealers aren't interested in it, then I would say it's a reasonable argument for a price reduction.

[TW]Fox · 17 Mar 2014 at 13:19

Perhaps he is pointing it out, if it was done properly I cant see how your average 2 grand Golf buyer would even know or care.

Main dealers will take them.

Snubber · 17 Mar 2014 at 13:19

[TW]Fox;26017202 said:
Between 1999 and 2002 it was very common to buy new cars in this way. They were UK spec, RHD cars which were supplied by European dealers. They were declared 'New at first registration' when registered in the UK. Often the only way to tell it was purchased in this way is that the pre delivery inspection stamp in the service book is from a European dealer.

If this is the case with the Golf, it's exactly the same as any other 2002 Golf GT TDI and arguably should command the same value. There are no insurance complications, etc etc.

The above is exactly what I have...the Golf arrived on the back of a car transporter with 6 miles on the clock with just the Dutch pre-delivery inspection stamp.

I can totally understand re-sale issues attached with the sale of grey imports...but with parallel imports where the cars come off the same assembly line as the UK models I just can't see the justification.

We did save approx. 20% against the OTR price from a UK dealer back in 2002. However I really struggle to see how this would influence the re-sale value now

Snubber · 17 Mar 2014 at 13:21

It's obvious that its an import because we stated it in the advert! Full disclosure etc etc

[TW]Fox · 17 Mar 2014 at 13:24

That's your problem then. I think it's sufficiently long ago to render it irrelevant. Mention it in passing when showing them round if it bothers you that much.

EddScott · 17 Mar 2014 at 13:55

My first Impreza was from Dublin and classed as a parallel import.

Made no difference at all. Those that have mentioned the import issue probably think it will have all the issues of a "grey" import which is probably not the case.

GhostWKD · 17 Mar 2014 at 13:58

[TW]Fox;26017545 said:
That's your problem then. I think it's sufficiently long ago to render it irrelevant. Mention it in passing when showing them round if it bothers you that much.

Or people are just looking for something to knock you down on price on as you always do when buying a car. Is your response a ground-standing no or a token small amount off the price? If the former can see why it may seem like it's a stopping point.

No idea on the price of a golf these days but as a basic example if you're after say £2000 and they're saying it's an import hence they'll offer £1600 then doesn't seem unrealistic as a ground testing first offer someone may try to open negotiations with?

mjt · 17 Mar 2014 at 15:32

Remove it from the ad!

I can't see how it's relevant at all. Now you have everyone trying it on because they think it's a funny foreign one.

Take it out of the ad and wait for people to comment on it if they see the Dutch inspection stamp.

Dr Who · 17 Mar 2014 at 15:39

Grey Imports are one thing, an EU parallel import, first registered in this country of that age shouldn't need any price reduction.

There is sometimes a premium on imported cars for insurance, but I am pretty sure that is down to the cost of repairing a car that doesn't have UK parts and won't apply to your car. I could be wrong mind

Ev0 · 17 Mar 2014 at 16:10

My old Impreza was also a parallel import (first owner bought it through litchfields, it was actually from Cyprus).

Never made any difference to anything really.