Moving to Jersey changes three things at once: what you can borrow, what the car costs once it is on the island, and what happens to any finance already on it. Do them in this order.
1. Find out where your residential status puts you
Residential status decides what you can buy and borrow in Jersey. It is settled before a lender looks at your income, so it comes first. Our glossary entry on residential status explains the terms and links to the government's page. We have not been able to re-check that page's current category wording while writing this article, so confirm your category there before you apply.
If you are not yet settled, a lender may treat your application differently, or not lend at all. Ask the lender how it applies its residential rules before you start a car search.
2. Count the import costs before you agree a price
A car bought from outside Jersey brings two charges:
- GST at 5% on the import, per gov.je. If UK VAT was paid, it counts towards the value you pay GST on, unless you can show it was refunded.
- Vehicle Emissions Duty on first registration in Jersey, set by the CO2 figure. Fully electric cars pay nothing. The bands for other cars are in our car finance guide.
Add both to the price, then decide how much you are borrowing. If you are financing the duty, you pay interest on it for the whole term.
3. Check any finance already on the car
If you are bringing a car that is still on finance from the UK, read the agreement before you book the move. Many agreements say where the car can be kept, or require the lender's consent to take it abroad. Ask the lender in writing whether the car can be kept in Jersey.
Your options, if it cannot, are to settle the agreement before you move, or to refinance once you are on the island. Ask the lender for a settlement figure in writing. Jersey has no statutory early settlement rebate yet, so the figure depends on your agreement. Our refinance guide works through the sums.
4. Compare finance on the same terms
Once the costs are clear, compare hire purchase, PCP and a personal loan on the same amount, term and deposit. Compare the APR and the total amount payable, not the monthly figure. The car finance calculator does this, and includes the duty if you finance it.
If you have not yet built a credit history on the island, expect lenders to ask for more evidence and possibly a larger deposit. Keep bank statements and proof of address ready.
5. If something was not explained
If a dealer or lender did not explain how the rate or the commission worked, put your questions in writing and keep the replies. If the lender does not resolve a complaint within three months, the Channel Islands Financial Ombudsman can consider it. See our CIFO guide.
An enquiry through Bestloans.je involves no credit check. Before you accept an offer, check the APR, the total amount payable and the fees in writing.
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