If you’re interested in exporting cars to China then you should know that China is the largest car market in the world…and that a luxury car that sells for $50,000 to $60,000 in the US can sell for a whopping $150,000 to $200,000 in China!
Before you get too excited
The problem for potential exporters is that some of the luxury car manufacturers are pressuring dealers to sign an agreement saying that they won’t sell a car to someone that intends to export it. In fact, BMW’s US dealer agreement forbids the sale of vehicles to brokers or for export.
Crony capitalism
And of course what the car manufacturers can’t do with dealers now has them shelling out big bucks to lobbyists in $4000 suits to bribe blow-dried politicians so they’ll pass laws to harass and seize the private property of those involved in what to me is nothing more than free trade. This is a classic case of crony capitalism/corporatism.
Free, peaceful, and voluntary trade
If Joe in China wants a nice shiny new luxury car and is willing to pay for it, then who’s being hurt if Bob in California ships him exactly what Joe in China desires? There is no violation of the Non-Aggression Principle here which means no one is being hurt.
Those darn evil exporters
Of course the government has had a difficult time prosecuting those darn free-wheeling evil exporters because there are no laws (yet) saying its illegal to export a car, and…
How can you stop Bob from buying a new BMW, or whatever, and putting it into his name and then sticking it into a container to ship to Joe in China? (Sadly, I’m sure the Feds will make things difficult for the shipping companies now too.)
No law
Does it matter to the feds that so far there is no law forbidding this which makes all of their efforts an expensive and abusive witch hunt? Of course it doesn’t matter! And why would it matter when your witch hunt is fueled by infinite created-out-of-thin air fiat Federal Reserve Notes?
Inquiring minds want to know
This brings to mind several questions, like, why do these cars sell for so much in China? Is it because the dealers are barred from selling these cars in China? Or could it be that the Chinese government imposes huge taxes or tariffs on imports that aren’t imposed on the little importer? (I’d love it if someone familiar with importing cars into China can answer these questions for us.)
If you’re interested in a little more about exporting cars then please check out these articles here and here.
And as usual, I’m always interested in what you have to say so please leave your comments or questions below.
Steve
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Wow, this is fantastic!
Steve, I would also be interested in knowing the answers to the questions you asked near the end of your article. :-)
Hey Steve,
Do you know if this works with used cars too?
People are making money exporting used cars to other countries so assuming there aren’t a bunch of freaky regulations in China (and there might be) I don’t know of any reason why it wouldn’t work there too. Its worth doing some research.
I’m so glad you’re back Steve and thanks for another interesting article! This is for sure something I plan on looking into more.
You’re welcome Steve and thanks for stopping by. :-)
Steve,
Okay you have piqued my interest. Perhaps it is time for another book. Please provide us some rudder on how to learn more information about exporting luxury cars. By more information I mean: what is the right way to do this, legally, profitably, with assurance you will receive payment, while avoiding pitfalls and especially conducting business in a manner that will keep the feds the hell out of your affairs? Thanks!
-Larry