Secure a car loan for an imported vehicle from abroad
27 Apr 2025
12
Minutes
Katrin Straub
CEO at nextsure
Discovered a special vehicle model abroad? The dream of an imported car often hits 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 issue with financing an imported car is the lack of the German registration certificate Part II as loan security for the bank.
An unsecured installment loan is often the best alternative because it is not tied to the vehicle as collateral, speeding up the purchasing process.
The import costs vary significantly: for imports from the EU, only the VAT (19%) applies, while for non-EU imports, customs duty (10%) is also applicable.
Understanding the financing gap for imported vehicles
The financing of an import car presents a special challenge for banks. Unlike a vehicle purchased in Germany, there is initially no German registration certificate Part II. This document serves the bank as the primary security for the loan. Without this security, the risk to the financial institution increases significantly. The bank cannot simply transfer ownership of the vehicle to itself by security assignment while it is abroad. This gap in collateral leads to an immediate refusal by traditional car financiers in over fifty percent of applications. Therefore, banks must resort to alternative valuation and security methods, which complicates the process. Understanding this core problem is the first step to a successful financing strategy.
Strategically assess cost factors for EU and non-EU imports
The origin of the vehicle significantly determines the total costs. An import from an EU member state is usually the most cost-effective option. There are no customs duties, and only the German VAT of nineteen percent on the net purchase price is due. The calculation is different when purchasing a vehicle in the USA or Japan. In addition to the purchase price and transport costs, often over 2,000 euros, you must account for ten percent customs duties and nineteen percent import VAT. These charges are calculated on the vehicle value plus transport costs, which can quickly increase the final price by thirty percent. Therefore, a careful comparison of the total costs is essential before deciding on a vehicle. The choice of import country directly impacts the required loan amount.
The bank's perspective: Minimize the risk of collateral transfer
For a bank, a car loan is a business that relies on solid security. The standard procedure is the transfer of ownership by way of security, where the vehicle registration certificate part two (logbook) is deposited with the bank as collateral. For an imported car, this document is initially not available. Therefore, the bank has no legal leverage if the borrower fails to make payments before the car is registered in Germany. This increased risk leads to stricter checks and higher creditworthiness requirements for the buyer. A few specialised institutions do offer import financing, but they often demand additional collateral or higher interest rates of at least two percentage points above the market average. The lack of physical security of the logbook is the central obstacle that needs to be overcome.
Exploring alternative financing options for import vehicles
If a purpose-tied auto loan fails, an unsecured instalment loan offers a flexible alternative. Since this loan is at your free disposal, the bank only assesses your general creditworthiness and does not require any vehicle security. You receive the loan amount directly and can handle the vehicle purchase like a cash buyer. This significantly simplifies negotiations with the foreign seller. The downside is often slightly higher interest rates, as the risk for the bank increases by about one to three percentage points without collateral. However, this option gives you full control over the purchasing process. You can complete the import and registration without relying on the approval of a financing bank. For a successful used car financing from abroad, this is often the most pragmatic approach.
Required documents for a smooth loan process
Comprehensive documentation is key to speeding up the financing and import process. Banks and licensing authorities require a range of documents to verify the legality and value of the vehicle. Keep the following documents ready:
A detailed and legally valid purchase agreement with the seller.
The complete foreign vehicle papers (e.g., Title in the USA).
The CoC papers (Certificate of Conformity) for vehicles manufactured in the EU, confirming compliance with EU standards.
The customs clearance certificate as proof of paid duties (for non-EU imports).
An appraisal from a recognised expert, especially for classic cars or rare models.
Your personal credit documents, typically the salary slips from the last three months.
The absence of just one of these documents can lead to delays of several weeks.
Step-by-step Guide: From Dream Car to German Registration
The path to an imported vehicle with German registration can be divided into seven clear steps. A systematic approach prevents costly mistakes and saves time. Follow this sequence for a smooth process:
Define financial framework: Clarify your budget and secure financing, ideally through a personal loan available in instalments.
Vehicle selection and purchase processing: Finalise a detailed purchase contract and check the vehicle history.
Organise transport: Hire a shipping company and clarify the insurance for the transport route, which can cost up to 3,000 euros.
Carry out customs clearance: Register the vehicle with German customs and pay all applicable fees (customs and import VAT).
Technical conversion and TÜV approval: Make necessary adjustments (e.g., to headlights) and carry out the main inspection under § 21 StVZO.
Ensure insurance coverage: Apply for an electronic insurance confirmation (eVB number) from your car insurance provider. Information regarding the Green Insurance Card is also relevant here.
Registration in Germany: Present all documents at the registration office to receive German number plates and registration certificates.
Only after completing these steps is the vehicle legally fully registered in Germany.
Expert tips for optimizing costs and security
Even with careful planning, unforeseen costs can increase the import expenses by up to twenty percent. Our expert tip: Always plan for a financial buffer of at least fifteen percent of the total costs for unexpected repairs, adjustments, or fees. Additionally, have an independent valuation report prepared before purchasing. While this costs between 200 and 500 euros, it protects you from overpriced offers and serves as an important reference point for the bank. When selecting a vehicle, ensure it has a complete maintenance history. Missing service records can reduce the resale value by more than ten percent. A well-thought-out three-way financing might also be an option to manage the monthly burden. These measures significantly minimize your financial risk.
Conclusion: With the right strategy to a financed imported car
More useful links
The ADAC provides a comprehensive guide to importing vehicles from the USA and Canada.
The European Consumer Centre (EVZ) provides important information on the transfer and registration of vehicles.
The ADAC provides information on general customs regulations relevant for travel.
FAQ
Why is it harder to get a car loan for an imported vehicle?
The main issue is loan security. Banks in Germany use the vehicle registration document Part II (Fahrzeugbrief) as collateral. Since this document is only issued after successful import and registration in Germany, the bank lacks the most important security during the purchasing and transportation phase, which increases the risk.
Is a personal installment loan a good alternative?
Yes, in many cases it is the best solution. A personal loan is not tied to a specific purpose. You receive the money for free use and can pay for the imported car like a cash buyer. This considerably simplifies the process, even if the interest rates might be slightly higher.
What is the difference between an import from the EU and one from 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 papers for registration. For a US import, you must pay ten percent customs duty and nineteen percent import VAT, have the vehicle technically converted, and carry out a more expensive full inspection by the TÜV.
What additional costs should I expect besides the purchase price?
Consider transport costs (sea or land freight), customs duties, and import VAT (for non-EU imports), costs for technical modifications and the full TÜV inspection (§ 21 StVZO), registration office fees, and possibly for a valuation report.
What are CoC papers and why are they important?
The CoC (Certificate of Conformity) is a manufacturer's conformity certificate. It confirms that the vehicle complies with the EU technical standards. With this document, registering an EU import 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 duration largely depends on the country of origin and the efficiency of processing. A financing approval for an installment loan can be granted within 24 hours. The shipping of a vehicle from overseas can take four to eight weeks. Expect the entire process, from selection to registration, to take at least six to twelve weeks.
