When it comes to exporting cars there are some regulations that you need to keep in mind. You can be a part of the bustling import/export car business in vehicles, exporting cars all around the globe. And here is all you need to know to carry out vehicles’ export business.
It does not cost a lot to get into this business. As a startup, all you need to invest is in a mobile phone with an internet connection. As this business grows you can put some money in getting your website started, a little branding (logo, business name, etc.) and, printing business cards.
Focusing on a niche market rather than an expanded one will make it easier to concentrate and build a strong base. Decide your target customers, the location where you will serve and, the type of automobiles you will be dealing in. according to the International Trade Center, the top importer countries are the United States, Germany, United Kingdom, China, Canada, France, Belgium, Spain, Mexico, and Italy. Top exporters of vehicles include Germany, Republic of Korea, the United States, Japan, etc.
For the registration of your export/import business, you need to fill a registration form of your country. Once registered, you will be given instructions along with a Company Identification Number (CIN) for tax purposes.
For trading vehicles and automobiles there is specific documentation you need to submit and have. Moreover, these exported vehicles must comply with the importer country’s standards. For example, for importing cars to the United States, there are some environmental and safety standards (such as having airbags, seat belts, etc.) that the exporter must fulfill. Required forms and procedures depend on the type of vehicle you are exporting. These forms also have to be submitted to the country you are exporting to. Since, regulations and requirements keep updating and changing so it is advised to ask an import/export specialist for exact details, requirements, clearance documents, licenses that are required.
Import and export business charges based on two popular models, named commission structure and retainer model. In the commission structure, the exporter receives a percentage (commission) on any sales that he makes. Mostly, the commission is around 10 percent of the total price of the vehicle. For instance, if you sell an Audi R8 for $165,000, with a ten percent commission you will get $16,500 as commission. Additional charges, such as packaging and shipping should also be charged by the exporter.
The second model, that is the retainer model, works a little differently. According to this model, clients will pay a monthly fee to the exporter to be on call when they require your services. To determine the right amount for the retainer, the export should consider the costs of exporting the car, everything from labor, supplies, and of course, overhead.
If your vehicle is easy to sell it is advised to choose the commission model. But if it is hard to sell the product you are dealing in, stick with the retainer method.
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