Importing and exporting of cars from abroad is not just a business for those who drive cars only. Everyone who understands the intrigues of the business can invest and make money from such ventures. The following tips will help you avoid hidden and extra costs of doing the business and also, they will guide you on ways to handle the business safely;
Be Aware of the Startup Essential Items and Cost
In order to run a business involving imported vehicles successfully, you need to invest in a reliable startup activity. You need reliable internet, and dedicated phone for the business, you need a professional and user-friendly website, with a reliable web host. You need to get a dedicated fax machine and may even need to hire someone to brand the business with a unique logo. Once you can set these things up conveniently, you are on the right path. You can learn more about startup essentials on this blog.
Narrow your market and Focus on Targeted Customers
Many people who venture into importing car businesses have lost out because they try to market the cars to everyone. The truth of the matter is that you can’t service every market at once. You need to concentrate on a market that you can serve best. You need to identify your targeted customers, the main cities you want to sell these cars, and the type of Vehicles you want to import.
As a beginner, it will make a lot of sense to start small. You may want to import small cars used as taxis in your city or nearby cities. You may want to start with cheaper car models that low-income workers can afford.
Dealerships and Auctions
Auctions can save you lots of money, especially when you purchase a vehicle abroad at lower the costs of the current market value of the car. In some cases, people do pay dealerships to bid for auctioned cars on their behalf, especially on certain brands and models. Using a dealership can save you costs of being physically present at auctions and monitoring auction websites for cars being sold.
Experts in this business suggest that you go for a dealership that allows you to make payment after purchasing the cars. Which means you wouldn’t have to pay upfront from the vehicles you want to buy, you only pay the buyer before the shipping is completed. You must be aware of the types of vehicles allowed to be imported into your country. Many countries place restrictions on imported cars based on their model and age. Make sure the cars you are importing are certified to be in good conditions and they meet road-worthiness in your country.
Be Aware of Costs of Imports, Clearance and Other Sales
Before you can decide on the final price of selling an imported vehicle, you need to be aware of all hidden fees, which include customer service fees, and clearance fees. In most countries, the costs of importing a vehicle may depend on the year of manufacture of the car, the brand, and model, as well as the engine size.
You may have to pay certain hidden fees such as auction fee, port charges, VAT, customs duties and levies, commissions payable to the shipping and clearing agency, warehousing, and delivery fees. Similarly, you need to ensure that all necessary documents are obtained. You may need documents such as your Tax clearance, Tax Identification number, company registration and many more.
Avoid Salvage and Repossessed Cars
Vehicles that are salvaged from accident scenes and those that have been repossessed from their owners can be complicated to trade in your city. Accident cars, for instance, might have been badly damaged in such a way that you may end up spending more money to repair them. Don’t get carried away by the ridiculous prices of salvage and repossessed cars, unless your dealer provides sufficient information on costs of their repairs- It can be very difficult to trust car dealers abroad these days.
Import Those Types of Vehicles You Already Know
A bad business idea is when you start importing the newest models of popular brands because you can make money off them. What do you know about heavy-duty cars, buses, or motorcycles? You need to rely on past experiences on certain brands of cars in order to know how to handle an emergency situation such as the development of faults on the car.
You need to be aware of vehicles designed for the type of roads in your city. If your country operates right-hand drive, don’t go and import left-hand wheels, it will be a total waste of money and you may get yourself arrested by authorities. Light duty vehicles such as cars and trucks do have a wider market, same with motorbikes and bicycles. Sports cars may not be popular in your country; hence you should avoid dealing in such.
Save Costs by Importing Vehicles in Shared Containers
You may be paying more than necessary if you decided to get your own shipping container directly from abroad. If you are importing 3 sedan cars, for instance, you may want to share a container with another importer to save on costs of shipping. Importing vehicles from abroad can be very cash-intensive, hence you must be prepared to collaborate with dealers to reduce costs of doing the business. Dealerships do have contacts of individuals shipping certified used cars to your country, they will probably link you up on this.
In conclusion, Vehicle importation from abroad is not a business you can do on your own. It is important that you work on your market first and familiarize yourself with necessary laws and conditions, especially government rules on the business. Secondly, Vehicle importation and selling business should not be seen as a get-rich-quick business. If you want to take hold of your market, you must be prepared to have contentment with a moderate to low profit margin, otherwise, you will lose your customers in no time. It is important to establish your authority in the business first and make a steady profit even if it is low.