Straw Buying Gray Market Exports

Does anyone here know anyone who has done this or know about the legality of doing it?

Background. There is huge demand for certain kinds of cars in China, and the prices are several times what you pay in the USA. This kind of arbitrage will always be filled. 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. Then you sign the pink slip to them, and you get $500-5,000.

I've seen some ads and replied, still have not followed up until I can learn more about the outfit. I'd be uber careful the check to the dealer was good. Otherwise issues are:

My state makes you get a dealer license after 5 or so car sales a year. I see that as no huge deal.

Dealers can blacklist you. Big deal, I am not buying this kind of car for myself, even if I had the money,

Is it legal? This is the biggie. It appears right on the edge. Like smurfing cold pills but not quite. Nothing illegal about buying and selling a car. Might be when you do it for the gray market.

China is not happy, but they screw the USA so much I really do not care about that. Ditto manufacturers racing over there. They are making the market.

Thoughts? Legal? How to check out the dealer-broker?

IF there check is for the full amount of the purchase price and it clears... then sign the pink slip over, else someone will come looking for you for payment.

It often takes time for a dealer to get the paper work to DMV.

It’s legal for used cars. For new cars, you would have to title them first, meaning pay sales tax.

Quote: Mosca

It’s legal for used cars. For new cars, you would have to title them first, meaning pay sales tax.

Buy them in Oregon. No sales tax. Ship from Portland, right there. Huge car inventories used to come in from Japan.

Maybe MrV will help you. I believe he's mentioned before he lives in Portland.

Quote: beachbumbabs

Buy them in Oregon. No sales tax. Ship from Portland, right there. Huge car inventories used to come in from Japan.

Maybe MrV will help you. I believe he's mentioned before he lives in Portland.

I'm not trying to do all of that. Just straw buy for the person doing all the shipping. The key is they only want real specific things. Just a few models and colors. Color is big as Asians seem to want just a few conservative ones. Whites, blacks, etc. I hear in China color has all kinds of hidden meaning to the point they tell businessmen don't put any kind of bow on a wrapped gift.

But I would not have to figure it out. They send an email with the specs.

Quote: AZDuffman

My state makes you get a dealer license after 5 or so car sales a year.

Dealers can blacklist you.

Is it legal?

Quote: Ron Swanson

"Whatever happened to, 'Hey I have some apples, would you like to buy them?' 'Yes. Thank you'.
That's as complicated as it should be to open a business in this country

Quote: Face

Sometimes I wish this board had the thank you button.

Usually not, though.

Quote: beachbumbabs

Buy them in Oregon. No sales tax. Ship from Portland, right there. Huge car inventories used to come in from Japan.

Maybe MrV will help you. I believe he's mentioned before he lives in Portland.

But Oregon requires you to title, register and insure the car; you can’t take possession on an MCO. Same with Delaware.

Best to get a dealer license and buy the right cars used at auction or off lease. Then you can simply flip the titles and keep the profit. Or use the other guy’s money and keep the fee. But that might get complicated when the income tax man comes around. There will be records, expenses, etc.

Quote: Mosca

But Oregon requires you to title, register and insure the car; you can’t take possession on an MCO. Same with Delaware.

Best to get a dealer license and buy the right cars used at auction or off lease. Then you can simply flip the titles and keep the profit. Or use the other guy’s money and keep the fee. But that might get complicated when the income tax man comes around. There will be records, expenses, etc.

Good advice, thanks Mosca, even if AZD isn't doing it that way.

Quote: beachbumbabs

Good advice, thanks Mosca, even if AZD isn't doing it that way.

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.