Buying in the US & Exporting to Europe

Kirstie_H

Discussion requested via e-mail.

volvomax

For what brand?

tidester

The original request mentioned BMW, Porsche and Mercedes though this discussion doesn't need to be constrained to just those brands. We could even consider Volvo!

tidester, host
SUVs and Smart Shopper

volvomax

Well, those franchises expressly forbid their US dealers to sell cars for export.
So, the person buying the car would have to have a verifiable US address.
Next, depending on which country you want to send the car to, you would have to do a fair amount of modification.
Then, you may have to pay an import tax or tariff on the car.
Finally, you will have no warranty

tidester

I'll let the requestor speak for himself.

tidester, host
SUVs and Smart Shopper

mbporbmw

I am the requestor. I apologize for leaving you clueless and not getting to you earlier. I am a US citizen and have a verifiable address. I am concerned mostly with issues on the purchasing side and US regulations instead of the rules of the other countries. I have some local people who are informed on that issue.

For volvomax or anybody else who can answer:

Could you please explain more on how the US dealers forbid their cars for export. If i purchase a car in my name, should I not have the right to move it to whatever country I choose as long as that other country permits it's registration?

Also. is the abolishment of the warranty an absolute fact for all vehicles moved to a different country?

Thank You

jlawrence01

Could you please explain more on how the US dealers forbid their cars for export. If i purchase a car in my name, should I not have the right to move it to whatever country I choose as long as that other country permits it's registration?


Many dealers will not sell to you for export due to contractual obligations with the automakers that the dealerships represent.

In reality, I really do not see how anyone could stop you from buying a vehicle, placing it into a container and shipping it abroad.

However, I doubt that the OEM would honor a warranty on an exported vehicle as they may not even have a presence in that other country. Also, MOST manufacturers take a dim view of grey marketeers.

mbporbmw

Thank you for your response jlawrence01.

You mention that most manufacturers take a dim view of gray marketeers. Are there manufactures that do not hold such a stance.

As far as repairing vehicles, there are official service centers for all of the brands mentioned. Vehicles could be repaired there. Even so, is the warranty of a vehicle terminated the moment it is registered in another country?

Are there any books or resources I could read to familiarize myself with such warranty regulations and US auto export laws?

And finally, what would be the most cost effective manner to purchase vehicles in larger quantities even if they are not for export? Is it possible to purchase directly from the factory and bypass the dealerships (a lot of bmws and mbs are produced in the US)?

volvomax

the franchise agreements that all dealers sign expressly forbid a dealer from KNOWINGLY selling a new car for export.
However, if you purchase a new car legally and pay all the appropriate fees and taxes, and register the car with your home state,then you can do what you want.
If you want to put the car in a container and send it wherever, you have that right.
The only way you couldn't is if you financed the purchase.
So, you have to pay cash.

As for the warranty, that is only good in the US.
The reason being is that the entity backing the warranty only exists in the US.
In the case of Volvo, it is Volvo Cars North America that stand behind the warranty, NOT Volvo Cars Sweden.
Same thing w/ GM.
GM in the US backs the GM warraty, NOT GM of Europe.
Finally, you have to check the laws of the country you wish to import to.
Some won't allow it at all, others will but you have to modify the car and pay an import fee.

mbporbmw

Thank you for your response. The warranty issue makes a lot of sense now.

On a different topic, does anybody have information concerning my second question. What is the most cost effective way to purchase cars in larger quantities? I feel that I could lower the price significantly by working with one dealership since they would be receiving multiple commissions. Is it possible, however, to order factory direct? I guess that I could start my own independent dealership, but would I be able to sell brands without having to sign a franchise agreement?

joel0622

However, if you purchase a new car legally and pay all the appropriate fees and taxes, and register the car with your home state,then you can do what you want.

As long as you pay cash. If the car is financed then (at least with FMCC) you have to alert the borrower that the car is being taken abroad.

I don't think that applies here, sounds like the poster has a bank roll.

joel0622

If you are a legitimate business the cheapest way would be to get a FIN # (thats what Ford calls them) That gives you the ability to buy cheap in bulk and choose where you want the cars to be delivered. They do have to be dropped shipped at a dealership though so, they won't bring them to your house or place of business. then I am sure there are some limitations as to what you can do with the cars then. Probably some legalities as to them being for resale

guess that I could start my own independent dealership, but would I be able to sell brands without having to sign a franchise agreement?

You have to have to own a dealership to sell new cars and the only ones you can buy are for the dealership brand you own.

A Ford sign would cost you a at the least a few million.

There are wholesalers here that send current used model cars over seas and make a killing doing it. Before taxes, fees and shipping they are doubling there money.

michaellno

The guy who we bought our last Saturn from does this ... he buys cars at auctions and ships them to Belize and resells them.

bostnwhalr

I guy was going to buy my 2000 Isuzu Trooper and export it as well. I'm curious how it's done as well.

rrajnish

Is there any restriction on exporting new/used Mercedes GL450 to Canada!!

I am getting conflicting statements from dealerships. I have plenty of online sellers ready to export new Mercedes GL450 to Canada but am not too sure about their authenticity.

Any input on export procedures would be appreciated

Thanks

Ravi

Kirstie_H

to Canada... from where? I think you might be in the wrong discussion since this one is about buying in the US, then sending to Europe.

iked

I think one of the questions that did not arise here and is very important ---- how can i export a car to Europe and comply with their emissions standard (if th ecar was manufactured in the USA ie X5 BMW - preowned) can i modify these cars here in the USA and send them over?

nicholas728

I would like to get into a little side venture of exporting cars to Europe.

I understand that cars in the U.S. are much cheaper than they are in Europe, and there is a demand for high end- U.S. cars in Europe.

I've thought of starting my own little export firm of cars to europe. I've done a bit of research but have some questions that are hard to find answers for.

1. Sometimes modifications have to be done to the cars to export them; I'm assuming they are all very similar modifications. Does anyone know the cost/ time this takes?

2. I've read a few discussions about dealers not selling cars for exports. If I buy it in my name, ship it, and transfer ownership, should I have any problems?

3. Is there any opportunity for importing European cars in the U.S. to make money as well?

Any answers / suggestions would be much appreciated!

Thank You,
Nicholas

johnsandwick

In February 2012 I bought my Mercedes Benz GLK 350 (manufactured October 2011) from a private seller in North Carolina. Before buying I had him take the car to the local MB dealer for a vehicle inspection. I bought the car sight unseen, shipped it to Zurich (truck to Miami, ship to Rotterdam, truck to Zurich) where it was homologated to Swiss standards. I then took the train (I live in Geneva), picked up the car, and registered it in my canton. The entire cost of car plus shipping plus conversion was $20,000 less than the price of the same car in Switzerland. A very good deal. The only unexpected expense was replacing the Command unit (navigation, radio, etc.), but even there I found it for around $1,100 and installed it myself (very easy). Still, a very good deal.

Now the car is getting old with over 100,000 kilometers. I'm interested in a 2018 Audi Q7 or Volvo XC90 (used, under 20,000 miles) to ship from the United States to Europe. The price differentials between Switzerland and the United States remain, with at least a $20,000 difference, in particular for the Q7 (the spread is not as wide with the XC90).

I am not worried about spare parts, warranties or anything else. The savings is huge, and my experience importing to Switzerland very straightforward and easy.

My question is: we are now in the 2018-2019 model years. Audi and Volvo are not Mercedes. Does anyone have any hints or knowledge on the setup of American-delivered cars (Audi Q7 and Volvo XC90 in particular) that I should worry about? Changing the Command unit on my GLK was very easy and relatively cheap. Is this a nightmare for U.S. delivered cars? Any other warnings?