How to Buy Cars from Japan to Ghana at a Cheaper Price

For many Ghanaians, owning a reliable and affordable car is a significant goal. Japanese used cars are a popular choice due to their renowned durability, fuel efficiency, and wide range of models. While importing can seem daunting, with careful planning and smart choices, you can secure a great deal.

Here’s a guide to navigating the process and maximizing your savings when buying a car from Japan to Ghana:

1. Research and Set a Realistic Budget:

Before you even start Browse, define your needs and budget. Consider:

• Car Type: Sedan, SUV, hatchback, commercial vehicle?
• Engine Size (CC): This significantly impacts import duties in Ghana. Smaller engines generally mean lower duties.
• Age of Vehicle: Ghana has an age restriction. Vehicles older than 10 years attract graduated duties and penalties, making them more expensive. Aim for cars under 10 years old if possible to avoid these extra costs.
• Condition: Are you looking for a nearly new vehicle or something with a few more miles? A higher grade (e.g., 4.0 or 4.5) in Japanese auctions indicates better condition.
• Total Cost: Remember to factor in not just the car’s price, but also shipping, insurance, import duties, port handling fees, and local clearing charges.

2. Choose Reputable Japanese Car Exporters:

This is arguably the most crucial step. Stick to well-established and transparent online platforms and exporters. Some popular options include:

• BE FORWARD: A very popular choice with a wide selection and local agents in Ghana.
• SBT Japan: Another large and reputable exporter with a good track record.
• Japan Partner: Offers a range of vehicles and shipping options.
• Autocraft Japan: Specializes in cheap used cars for Ghana.
• SAT Japan: Focuses on transparency and affordability.

Tips for choosing an exporter:

• Read reviews and testimonials.
• Check their customer service: Do they respond promptly to inquiries?
• Look for transparency: Do they provide clear pricing, vehicle history reports, and high-quality photos/videos? Avoid those with hidden fees.
• Confirm their export experience to Ghana.

3. Select Your Car and Understand its Details:

Once you’ve chosen an exporter, browse their inventory. Pay close attention to:

• Vehicle Grade: Japanese auction sheets use a grading system (e.g., 4.5, 4.0, R, 3.5). Higher numbers indicate better condition.
• Mileage: Lower mileage generally means a longer lifespan for the vehicle.
• Chassis and Engine Numbers: Ensure these are clearly provided for future reference.
• Year of Manufacture: Crucial for calculating import duties in Ghana.
• Auction Sheet (if applicable): This provides detailed information about the car’s condition, any damages, and service history.

4. Consider the Cheapest Shipping Methods:

Shipping costs are a significant portion of the total price.

• Roll-on/Roll-off (RoRo): This is generally the most cost-effective method for shipping cars. Your vehicle is driven onto a specialized cargo ship and secured. It’s ideal for operational vehicles.
• Container Shipping (Shared): If you can share a container with other vehicles, it can be more economical than a dedicated container. This offers more security but is typically more expensive than RoRo.

Key Shipping Considerations:

• Port of Entry in Ghana: Tema and Takoradi are the main ports.
• Transit Time: Be aware that shipping can take several weeks (e.g., 4-8 weeks from Japan to Ghana).
• Marine Insurance: Always opt for marine insurance to protect your investment during transit.

5. Understand and Budget for Ghanaian Import Duties and Taxes:

Ghana has specific regulations and duties for imported vehicles. These vary based on the car’s age, engine capacity, and value.

Common duties and taxes include (but are subject to change, so always verify with the Ghana Revenue Authority – GRA):

• Import Duty: Can range from 5% to 20% of the CIF (Cost, Insurance, Freight) value.
• Value Added Tax (VAT): Around 15% of the CIF value.
• National Health Insurance Levy (NHIL): Around 2.5% of the CIF value.
• GETFund Levy, COVID-19 Levy, AU Levy, ECOWAS Levy, Exim Levy, Examination Fee, Processing Fee, Special Import Levy: These are additional levies that add to the total cost.
• Overage Penalties: If the car is older than 10 years, significant penalties apply, ranging from 5% to 100% of the CIF value depending on the age bracket.

Tips for minimizing duty costs:

• Choose a car under 10 years old. This is the most impactful way to save.
• Opt for smaller engine sizes.
• Work with a reliable clearing agent in Ghana. They can provide accurate duty estimates and guide you through the customs process.

6. The Import Process – Step-by-Step:

1. Purchase and Proforma Invoice: Once you select your car, the exporter will provide a Proforma Invoice detailing the car’s price and shipping costs.
2. Payment: Make the payment to the exporter. Reputable exporters offer secure payment methods.
3. Shipping Arrangement: The exporter arranges shipping. You’ll receive a Bill of Lading (B/L), which is a crucial document for customs clearance.
4. Arrival Notification: You will be notified when your car arrives at the Ghanaian port (Tema or Takoradi).
5. Hire a Clearing Agent: Unless you are highly experienced with customs procedures, it’s strongly recommended to hire a reputable clearing agent in Ghana. They will handle the complex paperwork, duty calculations, and interactions with the Ghana Revenue Authority (GRA) and Ghana Ports and Harbours Authority (GPHA).
6. Customs Clearance and Duty Payment: Your clearing agent will present the necessary documents (Bill of Lading, Purchase Invoice, ID, etc.) to customs. You will then pay the assessed import duties and taxes to the GRA.
7. Port Handling and Other Fees: Pay any port charges, demurrages (if there are delays), and other local fees.
8. Vehicle Inspection: Your car will undergo an inspection at the port to ensure it meets Ghanaian road safety requirements.
9. Driver and Vehicle Licensing Authority (DVLA) Registration: Once cleared from customs, you’ll proceed to the DVLA with your customs clearance documents, roadworthiness certificate (if applicable), and other paperwork to register the vehicle and obtain your license plates.

Key Documents You’ll Need:

• Original Bill of Lading
• Original Purchase Invoice
• Your Identification (Passport/National ID)
• Customs Declaration Form (C-12/SAD)
• Roadworthiness Certificate (may be issued after inspection)
• Insurance Certificate (mandatory)

To get the cheapest price, remember these core principles:

• Buy younger used cars (under 10 years old).
• Choose cars with smaller engine capacities.
• Opt for RoRo shipping.
• Thoroughly research and compare prices from multiple reputable exporters.
• Factor in ALL costs from the start.
• Engage a reliable and efficient clearing agent in Ghana.

By following these steps and staying informed about regulations and costs, you can successfully import a quality Japanese used car to Ghana without breaking the bank.

Source: http://thepressradio.com