When it comes to the automotive industry, the term “parallel imported cars” is quite common. But what does it really mean? In this article, we’ll delve into the English terms associated with parallel imported cars, explaining their meanings and how they differ from other types of vehicles.
What Are Parallel Imported Cars?
Parallel imported cars refer to vehicles that are imported into a country from a different market without going through the authorized dealer network of the vehicle’s manufacturer. These cars are often purchased from dealers in other countries where the same vehicle is sold at a lower price due to differences in taxes, tariffs, and market demand.
Key Terms Associated with Parallel Imported Cars
Parallel Importing
- Definition: The process of importing vehicles from another country without the manufacturer’s authorization.
- Example: A car bought in Germany and imported into the UK is considered a parallel import.
Grey Market
- Definition: A market where goods are sold outside of the official distribution channels, often at lower prices.
- Example: Parallel imported cars are often part of the grey market due to price differences between countries.
Grey Market Dealer
- Definition: A dealer who sells parallel imported cars.
- Example: A grey market dealer in the UK might sell cars imported from Germany at a lower price than authorized dealers.
Grey Market Price
- Definition: The price of a parallel imported car, which is typically lower than the price of the same car sold through authorized dealers.
- Example: A grey market price for a car might be £10,000 lower than the price from an authorized dealer.
Import Duty
- Definition: The tax paid on imported goods, including cars.
- Example: Import duty on a parallel imported car can vary depending on the country of import and the type of vehicle.
Customs Clearance
- Definition: The process of getting a car released from customs after it has been imported.
- Example: Parallel imported cars must go through customs clearance to be legally sold in the importing country.
Vehicle Identification Number (VIN)
- Definition: A unique 17-character code that identifies a specific vehicle.
- Example: The VIN is used to track and identify parallel imported cars during customs clearance.
Manufacturer’s Warranty
- Definition: The warranty provided by the vehicle manufacturer for a new car.
- Example: Parallel imported cars may or may not come with a manufacturer’s warranty, depending on the dealer and the country of origin.
Benefits and Risks of Parallel Imported Cars
Benefits
- Lower Prices: Parallel imported cars are often sold at lower prices due to lower taxes and tariffs in the exporting country.
- Access to New Models: Consumers can purchase vehicles that are not available in their home country.
- Customization: Some parallel imported cars may have been customized to suit the preferences of the exporting market.
Risks
- Warranty Issues: Parallel imported cars may not come with a manufacturer’s warranty or may have a limited warranty.
- Quality Control: There may be concerns about the quality of vehicles that have been imported from different markets.
- Legal Issues: Parallel importing can be illegal in some countries, leading to potential fines or seizure of the vehicle.
In conclusion, understanding the English terms associated with parallel imported cars can help consumers make informed decisions when purchasing vehicles from outside their home country. While these cars can offer significant savings and access to new models, it’s important to be aware of the potential risks and legal implications.