International trade has become more prevalent in recent years. The U.S Department of Commerce estimates that the market is worth trillions of dollars. Nowadays, you can import any product from anywhere in the world and distribute it somewhere else.
Importing cars for resale in another country isn’t exactly rocket science. You’re selling cars in a country other than the one they were manufactured. If you’re planning to import cars from one country to sell in another, these below tips have got you covered.
Try to Buy Insurance for Protection.
Starting a reselling business is a significant investment that you shouldn’t take lightly. As a business owner, you must find ways to protect your investment. The shipping process is not void of unfortunate occurrences and your vehicles could suffer significant damage on their way to the port of entry.
You need a type of insurance for different aspects of your business. This will help mitigate unforeseen circumstances. And if you’re traveling abroad to purchase a car, think about buying an international travel insurance plan. There are many risks associated with traveling from one country to another with insurance. The COVID-19 pandemic has enlightened people on the need to have medical coverage when traveling. If you get injured or sick overseas, a health insurance policy doesn’t cover your medical expenses and medical care.
Also, try to choose a policy that offers medical evacuation back to your home country. Depending on the type of coverage, a travel insurance plan can also cover trip cancellation or delay. Speak with your insurance agent or insurance company regarding your specific needs to help you make a more informed decision.
Be Cautious When Buying Overly Cheap Cars.
Every entrepreneur wants to maximize profits while minimizing costs. Importing new cars can be cost-intensive, considering it requires significant capital costs. However, buying a new car gives a sense of fulfillment and satisfaction. New cars assure you that all the features are in top working condition. Unlike used vehicles, there are no uncertainties about what to expect lurking in the background. However, the cost of a new vehicle can significantly impact your finances.
No doubt, used cars offer a better deal for many people. In fact, the used car industry worldwide has experienced tremendous growth in recent years. Most importers buy used or salvage cars from used car auction sites that offer access to a wide range of vehicles from different top automakers like Nissan, Toyota, and Volkswagen (VW). The most significant advantage of used cars is that they’re available. Essentially, you can buy your preferred brand and model for a fraction of the cost.
Used vehicles also provide a cost-effective alternative as long as the car is in a fixable state. So, it helps to be cautious when buying overly cheap cars. So if you want to buy a used car for sale in Ghana, you’ll first have to determine the cost of repair.
Check Customs Fees for Importing and Reselling.
Different countries have different custom fees for the importation of international vehicles. Before buying a car, try to check the destination country’s imported car customs fees. For example, if you want to import vehicles into the United States, you’re restricted within the CBP compliance framework.
The CBP uses the information you provide in your filings to determine the admissibility and value of the product, amongst other things. More importantly, speak to an import specialist at the port of entry to estimate the duty rate of the type of product you’re shipping. Go a step further to ask questions regarding the filing requirements to avoid making mistakes. Also, consider hiring a licensed and experienced customs broker and expert to assist you with the clearing process.