Used cars in USA for export big business

Published: 04th March 2011
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Used cars in USA for export is big business if you know how to do it right. Transporting and selling cars in other countries outside the USA requires a certain expertise in the business and a lot of market research and business planning is essential. Securing finances from the banks, obtaining the requisite licenses, acquiring letter of credits from banks and arranging for shipping/transportation to the various countries around the globe requires a fair amount of planning and organizational skills. Many US agencies as well as the US Customs have laws and regulations regarding this business and you have to adhere to them when you are dealing with used cars in USA for export.

Some of these steps can help you get a grip on the business of used cars in USA for export and will pave the way for smoother transactions. Firstly, it is important to arrange for finances as these will be required for various purposes like obtaining licenses and for footing the transportation costs.

The initial carrying expenses are generally borne by the exporter which can then be recovered by the importer. Market research plays a very important role in the success of the business because you have to know the right auto dealers in used cars in the destination countries and find auto agents there. This can be done through the internet where you can get information through listed directories or you can join an auto association which can provide you with the same information and plus personal referrals.

You can also contact SCORE in the USA which provides information about used car auctions and dealers in the buyers’ countries and help to America’s small businesses. A proper study of the foreign trade terminologies is absolutely imperative for running the business. Globally accepted INCOTERMS like CIF and FOB should be understood before venturing into this business.

The next step would be to draw up a business plan which should include your target countries, licensing requirements, applicable taxes and duties and other paperwork. Although an export license is generally not required in the case of used cars in USA for export, a federal certificate or license may be required by certain countries and this can be found out from the foreign consulate or the foreign government licensing agency. A pro forma invoice is then issued to the agent.

A secured letter of credit should be obtained from the importer before the actual transportation. This insures the payment of invoice by the bank since all the fulfillment terms are contained in this letter of credit and which acts as evidence. International transportation whether by land, air or water requires that all title documents and certificates must be ready before the vehicle can be transported across the USA borders. Failure to comply with international rules can result in penalties. The US Customs brokers can also be approached for help in transporting used cars in USA for export and all international as well as local and federal rules must be checked thoroughly while operating this business.

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