Secure car finance for an imported car from abroad
27.04.2025
10
Minutes
Katrin Straub
Managing Director at nextsure
Found a particular vehicle model abroad? The dream of an imported car often falls at an unexpected hurdle: financing. We show you how to find a car loan for an imported vehicle from abroad and which strategic steps lead to success.
The topic in brief and concise terms
The main problem when financing an imported car is the lack of the German registration certificate Part II as collateral for the bank.
An unsecured instalment loan is often the best alternative, as it is not tied to the vehicle as collateral and speeds up the purchase process.
Import costs differ significantly: for imports from the EU, only VAT (19%) applies; for non-EU imports, customs duty (10%) is also charged.
Understanding the financing gap for imported vehicles
Financing an imported car presents banks with a particular challenge. Unlike a vehicle purchased in Germany, there is initially no German registration certificate part II. This document serves as the bank’s primary security for the loan. Without this security, the risk for the lending institution rises significantly. The bank cannot simply transfer the vehicle into its ownership by way of security transfer while it is still abroad. This gap in collateralisation leads to immediate rejection in over fifty per cent of enquiries by traditional car financiers. Banks therefore have to resort to alternative valuation and security methods, which complicates the process. Understanding this core problem is the first step towards a successful financing strategy.
Strategically assess cost factors for EU and non-EU imports
The origin of the vehicle has a significant impact on the total cost. An import from an EU member state is usually the most cost-effective option. There are no customs duties, and only the German value-added tax of nineteen percent is charged on the net purchase price. When buying a vehicle in the USA or Japan, the calculation is different. In addition to the purchase price and transport costs, which often exceed 2,000 euros, you must also factor in ten percent customs duty and nineteen percent import turnover tax. These charges are calculated on the vehicle value plus transport costs, which quickly increases the final price by thirty percent. A careful comparison of the total costs is therefore essential before you decide on a vehicle. The choice of import country therefore has a direct effect on the amount of credit required.
The bank’s perspective: minimising the risk of security transfer of ownership
For a bank, car financing is a business based on solid security. The standard procedure is the transfer of ownership by way of security, whereby the registration certificate, Part II (vehicle registration document) is deposited with the bank as collateral. In the case of an imported car, this document is initially not available. The bank therefore has no legal leverage if the borrower does not pay the instalments before the car is registered in Germany. This increased risk leads to stricter checks and higher requirements for the buyer’s creditworthiness. A few specialised institutions do offer import financing, but often require additional collateral or higher interest rates of at least two percentage points above the market average. The lack of physical security in the form of the vehicle registration document is the central obstacle that must be overcome.
Unlock alternative financing options for imported vehicles
If an earmarked car loan falls through, an unsecured instalment loan offers a flexible alternative. As this loan is available for you to use as you wish, the bank only checks your general creditworthiness and does not require vehicle collateral. You receive the loan amount directly and can handle the car purchase like a cash buyer. This makes negotiations with the overseas seller much easier. The drawback is often slightly higher interest rates, as the bank’s risk rises by around one to three percentage points without asset-backed security. However, this option gives you full control over the purchase process. You can complete the import and registration without having to rely on approval from a financing bank. For successful used-car financing from abroad, this is often the most pragmatic route.
Required documents for a smooth loan processing
Complete documentation is the key to speeding up the financing and import process. Banks and registration authorities require a number of documents to verify the legality and value of the vehicle. Have the following documents ready:
A detailed and legally valid purchase agreement with the seller.
The complete foreign vehicle documents (e.g. Title in the USA).
The CoC documents (Certificate of Conformity) for vehicles manufactured in the EU, which confirm compliance with EU standards.
The customs clearance certificate from the customs office as proof of duties paid (for non-EU imports).
A valuation report from a recognised expert, especially for classic cars or rare models.
Your personal credit documents, typically your payslips for the last three months.
Missing even one of these documents can lead to delays of several weeks.
Step-by-step guide: From dream car to German registration
The process of importing a vehicle with German registration can be broken down into seven clear steps. A systematic approach prevents costly mistakes and saves time. Follow this order for a smooth process:
Set the financial framework: Clarify your budget and secure financing, ideally through an instalment loan for unrestricted use.
Vehicle selection and purchase processing: Draw up a detailed purchase agreement and check the vehicle history.
Organise transport: Commission a freight forwarder and clarify insurance for the transport route, which can cost up to 3,000 euros.
Complete customs clearance: Register the vehicle with German customs and pay all applicable fees (customs duty and import sales tax).
Technical conversion and full TÜV inspection: Have necessary modifications (e.g. to headlights) carried out and the main inspection in accordance with § 21 StVZO performed.
Ensure insurance cover: Apply for an electronic insurance confirmation (eVB number) from your motor insurer. Information about the Green Insurance Card is also relevant here.
Registration in Germany: Submit all documents to the registration authority to obtain German number plates and the registration certificates.
Only once these steps have been completed has the vehicle legally arrived in Germany in full.
Even with careful planning, unforeseen costs can increase import costs by up to twenty per cent. Our expert tip: always allow a financial buffer of at least fifteen per cent of the total costs for unexpected repairs, rework or fees. Also, have an independent valuation report prepared before purchase. Although this costs between 200 and 500 euros, it protects you from overpriced offers and serves the bank as an important point of reference. When selecting the vehicle, make sure it has a complete service history. Missing service records can reduce the resale value by more than ten per cent. A well-considered three-way financing could also be an option for managing the monthly burden. These measures significantly minimise your financial risk.
Conclusion: With the right strategy to a financed imported car
The path to car finance for an imported vehicle from abroad is more complex, but with the right preparation it is absolutely achievable. The key lies in understanding the bank’s perspective and proactively closing the financing gap. An unsecured instalment loan is often the most efficient solution for decoupling the purchase process and presenting yourself as a cash buyer. A precise calculation of all costs, from taxes to transport and technical conversion, protects you from nasty surprises. With complete documentation and a clear step-by-step strategy, the dream of a special vehicle from abroad becomes reality. Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific recommendations for optimisation.
More useful links
The ADAC offers a comprehensive guide to importing vehicles from the USA and Canada.
The European Consumer Centre (EVZ) provides important information on transporting and registering vehicles.
The ADAC provides information on general customs regulations that are relevant for travel.
FAQ
Why is it harder to get a car loan for an imported car?
The main problem is collateral security. In Germany, banks use the registration certificate Part II (vehicle title) as collateral. Since this document is only issued after the vehicle has been successfully imported and registered in Germany, the bank lacks its most important security during the purchase and transport phase, which increases the risk.
Is a personal instalment loan a good alternative?
Yes, in many cases it is the best solution. A personal instalment loan is not tied to a specific purpose. You receive the money for your free use and can pay for the imported car like a cash buyer. This makes the process much easier, even if the interest rates may be slightly higher.
What is the difference between an import from the EU and the USA?
An import from an EU country is significantly easier and cheaper. There are no customs duties, and you usually only need the CoC documents for registration. For an import from the US, you must pay ten per cent customs duty and nineteen per cent import sales tax, have the vehicle technically converted, and undergo a more expensive full inspection at the TÜV.
What costs will I incur in addition to the purchase price?
Expect transport costs (sea or land freight), customs duties and import VAT (for non-EU imports), costs for the technical conversion and the full TÜV inspection (§ 21 StVZO), fees for the registration authority and, if applicable, a valuation report.
What are CoC papers and why are they important?
The CoC (Certificate of Conformity) is a manufacturer’s certificate of conformity. It confirms that the vehicle complies with the EU’s technical standards. With this document, registering an imported EU vehicle in Germany is usually straightforward and does not require an expensive individual approval.
How long does the entire import and financing process take?
The timeframe depends heavily on the country of origin and the efficiency of processing. Approval for an instalment loan can be issued within 24 hours. Vehicle transport from overseas can take four to eight weeks. Allow at least six to twelve weeks for the entire process, from selection to registration.
