Car purchase export – what does that mean?

The term “car purchase export” refers to a business model in the used car market that provides for the export of purchased motor vehicles. Numerous car dealers operate this concept as a core business, for others it is part of a larger service offering. Buyers generally show interest in various vehicle categories – from compact cars to sedans, station wagons, vans, trucks and buses. The condition of the car is usually secondary. These can be used cars that are in good condition and ready to drive, as well as defective vehicles and cars that have been involved in an accident. In the case of the latter, the buyer usually takes care of the removal. The same applies to unroadworthy cars, for example with engine or transmission damage. The trade is advertised with quick and uncomplicated processing, the completion of all formalities and fair payment in cash. With the term car export one connects often also the annoying little slips of paper clamped to the side window. Such card dealers are sometimes conspicuous for their dubious business practices: If the area code suggests a value-added number and identity information is also missing, you should keep your hands off such offers.

Car purchase export for business customers

In B2B trade with export vehicles, used car dealers or car dealerships as well as commercial vehicle owners from outside the industry act as sellers. When forwarding agencies re-equip their fleet or a company plans to purchase new company vehicles, they part with the existing vehicles, some of which have high mileages, and turn to an auto-export buyer if necessary. The chance of lucrative purchase offers is however incomparably higher, if the salesman presents its vehicles to a larger prospective customer group. A handful of car export dealers in the local area are faced with several thousand registered buyers as potential buyers on established Internet portals such as ADESA. Due to the high demand, the supplier achieves significantly higher sales prices here than at the local car purchase export dealer.

Profitable trade with export vehicles

The fact that the export of used vehicles is considered a profitable business is primarily due to national differences in safety and environmental standards. If a roadworthy car is no longer registered for use on domestic roads due to technical defects, it often continues to serve as a useful means of transport for several years in many other countries. Older vehicles lose value in this country due to increased particulate emissions if they are prohibited from driving in environmental zones. In many African countries, there are no strict rules in this regard. This makes shipping end-of-life vehicles to Central and West African countries such as Angola, Nigeria, Togo or Senegal attractive. On the one hand, cars in need of repair can be put on the road without any problems in these countries, and on the other hand, maintenance work is often carried out by the customers themselves, while the hourly rates that are common in Germany no longer justify the expense. Even the purchase of vehicles that are ready for the scrap heap can be worthwhile: Appropriately networked car dealers also make good money from exporting spare parts.

Used cars with combustion engines lose value in the AU

Stricter AU regulations are forcing car manufacturers to drastically reduce CO2 emissions by 2025 and 2030. Although new registrations of electric cars are still limited, future technologies such as fuel cell drives and self-driving e-cars cannot be stopped. The fundamental change in the automotive industry will continue to allow the booming export of used cars to flourish in the medium term – it is not foreseeable that third world countries will follow suit with the ambitious climate targets. For commercial sellers of used vehicles, however, the locally based car purchase export dealer is not the first port of call – they feel better off on reputable online platforms with an expanded international customer base.

Source - https://www.waautoparts.com.au/car-purchase-export-what-does-that-mean/