Straw Buying Gray Market Exports

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March 10th, 2018 at 6:33:59 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 54
Posts: 6553
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.
March 10th, 2018 at 7:01:54 AM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 112
Posts: 8875
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.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
March 10th, 2018 at 9:02:31 AM permalink
Mosca
Member since: Oct 24, 2012
Threads: 20
Posts: 516
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.
March 23rd, 2018 at 2:10:53 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 54
Posts: 6553
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.
March 23rd, 2018 at 2:14:28 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 112
Posts: 8875
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.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
March 23rd, 2018 at 2:57:53 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 868
Posts: 10308
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?
March 23rd, 2018 at 3:15:10 PM permalink
kenarman
Member since: Oct 24, 2012
Threads: 7
Posts: 1358
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.
"but if you make yourselves sheep, the wolves will eat you." Benjamin Franklin
March 23rd, 2018 at 4:50:13 PM permalink
Wizard
Administrator
Member since: Oct 23, 2012
Threads: 208
Posts: 4942
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.
Knowledge is Good -- Emil Faber
March 24th, 2018 at 5:57:10 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 868
Posts: 10308
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.
March 24th, 2018 at 6:33:37 AM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 54
Posts: 6553
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.
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