Straw Buying Gray Market Exports

Quote: AZDuffman

Right. All I am looking at is straw buy what someone else wants. .

Fine, but once he gets what he wants make sure you are not still on the hook for it.

Quote: Fleastiff

Fine, but once he gets what he wants make sure you are not still on the hook for it.

That is one of my two biggest concerns. Although in addition to my safeguards I think the dealer would have their own.

Quote: AZDuffman

Right. All I am looking at is straw buy what someone else wants. Just certain new cars. Not looking at a car business at this point.

If you are buying them in your own name and then flipping the title, there will be tax implications, even if you aren't profiting from the sale. You could work it to your advantage, claiming expenses, or it might go against you. It's not illegal, but think it all the way through.

Please let us know what decision you made on this and if you went ahead with it, how has it been working out for you?

I'd be curious to know how you even learned of the opportunity.

I think this would be referred to as arbitrage.

Quote: Fleastiff

Please let us know what decision you made on this and if you went ahead with it, how has it been working out for you?

I'd be curious to know how you even learned of the opportunity.

I think this would be referred to as arbitrage.

I will probably be sending the application this weekend. For them yes, arbitrage. For me just straw buying.

Quote: AZDuffman

Problem is, carmakers are less than happy with the idea, so a person cannot hit lot after lot after lot. Enter the straw buyer. You walk on the lot, buy the vehicle in question, give a check drawn on their account.

Do you mean carmakers or car dealers? Why are they unhappy? They are selling cars, so who cares where they end up?

Quote: Pacomartin

Do you mean carmakers or car dealers? Why are they unhappy? They are selling cars, so who cares where they end up?

Car pricing is not the same in different countries. The manufacturers are very protective of these pricing differentials. A dealer could lose his dealership if he blatantly ignored the rules on who he can sell to.

No help from me.

I know you're not asking about importing yourself, but I'll tell this story anyway. A friend of mine normally keeps a high-end car here in the US. Against my advice, he shipped it to Europe because he planned to be there for several months. Then he shipped it back here. The authorities in customs blackmailed him both ways. I wasn't there, but they claimed he didn't do his paperwork properly, but for thousands in bribes they would expedite releasing the car.

Quote: Wizard

Against my advice, he shipped it to Europe because he planned to be there for several months.

Your friend does not seem to have made a very sound decision. I can't believe that shipping a car is cheaper than leasing a luxury car in Europe for a few months.

I think it was an emotional issue.
Some countries are notorious. Stolen luxury vehicles seized by the Estonian police take eons and "administrative fees" to get shipped back to their owners in the USA. In Greece and Turkey all Customs jobs are highly sought after.