can you ship a financed car overseas

Taking Your Ride Global: Can You Ship a Financed Car Overseas?

So, you’ve fallen head over heels for a new adventure across the pond, but there’s one hitch – your beloved car is still under finance. The question burning in your mind: can you ship it overseas while those monthly payments are ticking away? Good news! It’s often possible to ship a financed car, but there are some crucial steps and considerations to make sure everything runs smoothly.

Understanding the Basics:

A financed car means you haven’t fully paid for it yet; you’re making installments to your lender (usually a bank or credit union). Since they technically hold partial ownership of the vehicle, you need their permission before shipping it overseas. Think of it like getting the green light from a co-pilot on this exciting journey.

Steps to Shipping Success:

1. Talk to Your Lender: This is the first and most important step! Contact your lender and explain your plans. Be transparent about your destination, the shipping method, and the intended duration of your stay abroad. Some lenders might have specific clauses in your loan agreement regarding international relocation, so understanding those terms beforehand is crucial.

2. Get Written Permission: Don’t rely on verbal agreements. Get written consent from your lender stating they approve the overseas shipment. This document will be invaluable during customs clearance and other logistical processes.

3. Insurance Matters: Ensure your car insurance policy covers international transportation. You might need to adjust or acquire a specialized policy that protects your vehicle during shipping and in its new location.

4. Shipping Logistics: Choose a reputable international auto shipping company with experience handling financed vehicles. They’ll guide you through the documentation process, customs requirements, and ensure safe transportation of your car.

5. Consider Temporary Exportation: If your overseas stay is temporary, explore “temporary exportation” options. This allows you to ship your vehicle abroad for a specific period while maintaining ownership in your home country. Consult with your lender and shipping company about the feasibility of this option.

Factors to Weigh:

* Loan Terms: Review your loan agreement carefully. Some lenders may have restrictions on exporting financed vehicles or require a minimum amount of equity before approving international shipments.
* Shipping Costs: Factor in the cost of international shipping, insurance, customs fees, and potential modifications required for compliance with foreign regulations.
* Taxes & Duties: Research the taxes and import duties applicable to your destination country. These costs can vary significantly depending on the vehicle’s value and make/model.

Alternatives to Consider:

If your lender isn’t comfortable with overseas shipping, consider these alternatives:

* Selling Your Car: Sell your financed car before departing and use the proceeds towards purchasing a new vehicle at your destination.
* Short-Term Lease: Opt for a short-term lease in your destination country while you’re abroad.

The Bottom Line:

Shipping a financed car overseas is achievable, but it requires careful planning and communication with all parties involved – your lender, insurance provider, and shipping company. By understanding the process, weighing the factors, and exploring alternative options if necessary, you can make an informed decision that aligns with your adventure goals.

So, buckle up, gather your information, and embark on this exciting journey! Remember, a little research and preparation go a long way in making your international move smoother and more enjoyable.