The cost of importing a car
The most common questions we are asked by our clients is “How much is the car?”, “What does that cost include?” or “what is the total cost of importing this car?”. When you are buying your vehicle from a car importer, you will notice the dealer will always quote the price as “CIF port of destination”. So today, we have decided to break down the CIF cost. This way you know exactly what is covered by these charges.
For normal importers, CIF is an abbreviation for Cost, Insurance, and Freight. In the automotive industry, this charge covers much more – the vehicle inspection charges. Simply put, CIF is the cost of importing a car. Although they are bunched together, these services differ from each other and they are provided by separate entities.
Cost
The cost, also known as Free On Board (FOB), is the actual cost of the vehicle in the country of origin. Let me give you an example using Quality Car Export. If you identify a vehicle on our website, the cost of that car is listed as FOB. Meaning, if you have good contacts to ship the vehicle on your behalf, you will only part with the amount listed on our website. Now, obviously, we try to make the importation process as smooth for you as possible. Therefore, we would not advise you to buy the vehicle at FOB then sort out the shipping bit on your own. NO!
Freight
Freight simply means the shipping charges. Going back to our earlier example, since we do not advocate for “half-a-mile” service, we will include the shipping charges to the FOB price. That covers C and F so far. At this point, you have paid for the car and for transportation on the sea. We do not charge transportation to the loading port.
Your vehicle is ready to ship to the port of Mombasa (more details on car shipping to Kenya), however, there are mandatory services you have to clear before we can take your vehicle to the loading port.
Pre-shipment Inspection
The Kenyan government requires all vehicles being shipped to the country to undergo an inspection to meet their importation criteria.
All this is done before the vehicle is loaded into the ship. Therefore, these charges are added to the FOB and Freight charges. Your vehicle is then taken to a vehicle inspection company such as JEVIC or QISJ for inspection. A full inspection will include a physical inspection of the car, a mechanical and environmental inspection, document verification, electrical system, and safety inspection.
Additionally, the Kenyan government requires a further RoadWorthiness Inspection (RWI) to ensure the car is a right-hand drive and is at least 7 years old and below. We are required to produce authenticated documentation (no stolen cars into Kenya, sorry) for this inspection – an original DVLA registration document and a Ministry of Transport (MOT) test certificate valid for at least 4 months. Once this inspection is complete, we are given an inspection certificate that MUST be produced when clearing the vehicle at the port of Mombasa. Failure to produce this certificate results in hefty penalties. In fact, this figure is put at “15% of the customs value at the port of destination”. This is something we insist on to all our clients and is even found in our shipping guide to Kenya.
Marine Insurance
The last bit is insurance. This is a shipping regulation for all items. The weather and tides can be very unpredictable. Due to this, shipping companies require all items to be insured while in transit. In case your vehicle is damaged during transit, the shipping company will not be liable. This is where the insurance comes in to compensate you for the damages.
So now, you know what CIF stands for – Cost, Freight, Inspection, and Insurance. Once you pay this amount, your vehicle will be inspected, insured during shipping and shipped to the port of Mombasa. All you need to do is kick back and relax, awaiting the arrival of your new car. If you are too eager and cannot wait to test-drive it, you can track the movement of the vehicle from the UK all the way to Mombasa.