Being a car dealer in the modern age can be difficult at times, competition is fierce, the buyer will always be looking for ways to bring the sale price down, running costs are higher…at times, it can feel like there is a long list of things that are against you.
You have to be on your A game now more than ever when it comes to sourcing and selling cars, thinking of new ways to stay ahead of the competition is hard but there are plenty of opportunities out there for you to explore.
One great angle to capitalize on currently is by looking at weak rates of exchange, even your own currency can help you when it is plummeting down, exporting is a great way to earn an extra income if you are not able to import.
First up, let’s take a look at my own currency here in the UK, the GBP £ has not been in a great position against the USD $ recently, it feels like a lifetime ago that it was an amazing $2 to the £1… I have recently seen it drop to about 1.22 at one point…sad days, but I have still been shipping plenty of classic cars from the USA to the UK, that market seems to be holding up well and is consistent due to so many enthusiastic people looking to join the classic American car lifestyle, so you how can take advantage of a weak pound to the dollar?
If it is more expensive for people in the UK to purchase cars from the USA, think of the flip side, it has now become cheaper for people in the USA to purchase cars in the UK!
I have been shipping lots of classic Land Rovers and Mini vehicles to the USA, our American cousins love these Iconic British cars:
TIP: If you are thinking of exporting these types of vehicles then make sure the unit is over 25 years to comply with the regulations in the USA – this will make everyone’s life a lot easier – under 25 years of age and it becomes a nightmare due to the emissions rules etc.
Shipping vehicles by Roll on Roll off, also known as Ro Ro is a very economical way of shipping, this will video from YouTube will give you an idea on how the process works:
Exporting vehicles to foreign destinations can really help expand your business, the shipping part of the process is normally a very straightforward operation, I would always recommend employing an expert freight forwarder – wink wink, cough , cough – to take care of that side of the process, it will make your life nice and easy.
So what’s hot when it comes to importing at the moment?
Again you need to look at weaker rates of exchange, the countries that have increased in volume with car imports over the last few months that I have dealt with are:
All the currencies of the above countries are fairly weak against the pound (£) at the moment, shipping costs can be reasonable and your profit can easily be made through the rates of exchange.
Our clients are finding lots of different cars in these countries to import, the cars are over 30 years so they comply with the lower import tax ruling here in the UK, which in itself is a massive saving on some vehicles.
When shipping a classic car into the UK, and If a car is over 30 years of age and with no substantial changes to the engine, chassis, brakes or steering then you can obtain a ruling so the import duty is reduced to zero and the VAT rate is just 5% , that is another bonus on top of the currency strategy.
The classic car scene is booming at the moment, most of the classic cars have seen their values increase over the last few years by high percentages, people are looking at the vehicles as investments as well as good fun.
I spoke to the guys from the Motor Trade Podcast about importing and exporting, you can listen to the show here:
So if you feel like you car business could do with a new approach or you would like to try and make some money through a new venture you could do a lot worse then looking at importing and exporting vehicles.
It’s kept me in business for over 21 years so there is a good chance it could work for you as well.