Top Questions on America-based Used Cars for Export Answered

May 16, 2022

Ever wondered where America’s used vehicles are exported to? Do you believe vehicle exporting is illegal? Does vehicle exporting require a license? If such questions also arise in your mind, you have landed on the right page. Today, you are going to learn about second-hand cars in the USA for export and a lot more, only if you continue reading till the end.

Where second-hand cars used in America are exported to?

American used vehicles are always in high demand in foreign countries. According to the 2018 data revealed by Statista, the majority of second-hand cars in the USA are exported to the UAE, followed by Nigeria, Georgia, Mexico, Jordan, Ukraine, Cambodia, and the Dominican Republic.

So, the UAE is the top importing destination for US-based second-hand cars, bringing in 129,489vehicles surplus to the U.S. requirements.

Do I need a license to export vehicles out of the US?

No, there is no need for an export license to export vehicles out of the United States. All you need to have is the bill of sale and title. However, no matter if you want American second-hand cars for personal use, company’s fleet management, or reselling in your local markets, it’s best to partner with someone who represents your best interests in the United States. They must have an extensive network of suppliers and rich knowledge of how to navigate regulations and compliance requirements. This way, you can quickly get second-hand cards in the USA for export without any hassle and stress.

Why get used vehicles exported instead of new vehicles?

As stated above, to export vehicles from the USA to any other country, the US authorities require having the bill of sale and title. According to the US laws, a new vehicle is the one that has not been titled yet, there is no way to find new vehicles for export as only original manufacturers can deal with new vehicles.

Even when you buy a new vehicle from a dealer and you get it titled, it becomes “used”. Besides, it is a great challenge to buy a brand-new vehicle from a franchise dealer because the franchise agreement doesn’t allow franchise dealers to directly sell new vehicles for export.

Obviously, no manufacturer will want their new vehicles exported from the US as they don’t want to compete with their franchise dealers in other countries. Therefore, this restriction is put in place, and you can export only used vehicles from the USA.

I’ve heard from many people that vehicle exporting is illegal. Is it true?

No, it is the biggest misconception in the industry. Most people think like this because of the lack of understanding about international trading and unwarranted negative press coverage. On contrary, vehicle exporting is an established, legal, and lawful business. If US laws did not allow exporting of used vehicles, no passenger vehicle will be moved from warehouses to shipping ports; and, no shipping company will accept the booking to transport vehicles, if illegal.

Plus, exporters who purchase vehicles pay all required state and local sales taxes along with license and registration fees, all of which contribute to the revenue for state and local governments. All 50 states love exporters as state collects significant sales tax revenue from each sold cars, whether domestically or if acar is being exported overseas. So, vehicle exporting is fully legal and you shouldn’t have any doubt about exporting US-based second-hand cars.

Why do people favor exporting of US-based second-hand cars?

Vehicle export businesses buy and resell several models independently to meet the demands of small businesses and the common public. Often, they also help buyers save money.

Another reason why people look for second-hand cars in the USA for export is that, in many countries, a lot of businesses and people don’t have access to a manufacturer’s franchised auto dealership.

Many vehicle manufacturers limit their number of franchised auto dealerships due to heavy costs. It means that a lot of vehicle buyers around the world have only one channel for purchasing specific vehicles and that channel is vehicle exporting.

How do I choose a country for exporting USA-based second-hand cars?

If you run an independent business of reselling used vehicles, you should start selling highest-quality used cars from US. We have dealers in various countries who even make $4000-8,000 profit per car selling to their local clientele.  

Let’s check out how to choose a country when getting second-hand cars in the USA for export and reselling them.

If you are a foreigner, then, of course, you should first evaluate the demand for American-based second-hand cars in your country.

The most important thing to focus on while choosing countries is your language proficiency. Though English is a wide-spoken language, it is not used in everyday life in other countries. So, if you are proficient in another language, then it’s better to consider those countries where that language is widely spoken and used in daily life. Or, if your budget allows, you can get a trusted linguist professional to decipher paperwork and file forms in a country that doesn’t speak English.

Once you select one or more countries, you still need to do due diligence to ensure the success of your vehicle reselling business. Here are some of the questions that you might want to consider while researching:

·      What brands of vehicles do these people buy?

·      What costs do these people incur while buying certain brands’ vehicles?

·      How much will I need to pay for these vehicles at my local auctions?

·      Does this country have any import environmental compliance requirements?

·      Do the environmental compliance and rules affect the prices of vehicles I want to resell in this country?

·      What is the preferred way of handling transactions for auto-purchase in this country?

·      What is the procedure related to title and transfer paper working this country?

·      Will I need to pay taxes, if any, to the foreign government?

·      What’s the best mode to ship the vehicles to this country?

If you are finding it difficult to find answers to such questions or need assistance, get in touch with Royale Global. Their main goal is to put your business on the track of success by offering their vast expertise in the automotive exports industry. Whether you wish to improve your business’s bottom line by reselling used cars, you want to place a large order for your company’s fleet, or you love to get best-in-class vehicles for personal use, the company can make it a breeze for you to get your hands on second-hand cars in the USA for export.