The process of buying, transferring and selling cars for export is a lucrative business, but a difficult one to break into. Whether you wish to purchase vehicles in the United States to transfer to another country, or if you live in another country and desire to purchase vehicles in that country for transport to the United States or somewhere else, there are a number of legal ramifications and processes you'll need to go through before you can even begin to search for cars to buy. Once you've set up the necessary legal aspects of your exporting business, you can then search for cars to buy in your place of business. Read on for tips on both of these processes.
Legal Aspects
Under normal circumstances, if you purchase a car in the United States (regardless of where that car will end up being sold) you'll have to pay a registration fee and a titling fee in order to resell it. You'll also have to pay taxes on the vehicle itself, regardless of the tax policies of the country you're exporting it to. This is generally considered to be a significant boundary to people who are intending on starting up a car export business.
Because of this, the United States government has devised a system whereby you can purchase cars for export without having to pay these typical fees on the vehicles. In order to do that, however, you'll need to register for a wholesale dealer license. These licenses are available through your state government. A wholesale dealer license requires you have an office and a registered business organization. You'll have to pay a nominal registration fee and await approval by the state. Each state has slightly different regulations. Read more about obtaining a wholesale dealer license in your state by visiting your DMV.
European Export Cars
European export cars are among the most common. One of the best ways to purchase European export cars is to go through the JDM, or the Japanese domestic market. Vehicles tend to be much cheaper on the JDM than in the United States. Additionally, the cost of transporting a car from Japan to Europe can oftentimes be cheaper than the cost of transporting the same car from Japan to the United States. In order to get involved in this potentially lucrative car export business, you'll need to not only have a valid wholesale dealer license from your state within the United States, but you'll also need to research Japanese car export practices and determine exactly what type of qualifications and certification you need to legally operate your business.
Car exporting can be a legally difficult terrain to navigate. To ensure you are obeying all pertinent laws in your area, consult with an expert or your local DMV if you have any questions or concerns whatsoever. Doing so can save you from legal penalties and fines.
