Used Car Market: How Much Should You Pay, How, And For What?

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Used Car Market

50 km to the station

The current legislation was intended to force large companies that bring in more than 1,000 cars a year to provide an end-of-life vehicle dismantling network. These companies must set up the network in such a way as to allow the owner to return it to a location no more than 50 km as the crow flies from his place of residence. If they fail to guarantee this, they will then incur a fee for each vehicle put on sale. 

To get cash for junk cars in San Antonio and other cities, you can consult with the JunkCarsUS team. For example, the draft amendments stipulate that additional fees will not be charged if manufacturers build a network in at least 95 percent of the country. In case a business provides a network for less than 95 percent but more than 90 percent of the country’s territory, it will have to pay a fee for the absence of a network, but it will be reduced by 90 percent. The fee will also be reduced by 85% if the company has a network in less than 90% but more than 85% of the territory. Companies that have smaller networks or have not built them at all will pay the full fee. 

The recycling fee will also be paid by anyone importing a vehicle on their own, they do not have to set up a dismantling network. 

What it will change 

  1. There are sparsely populated places where it is uneconomical to set up dismantling stations for a few people.
  1. The current regulations are unfair to manufacturers, as you pay the entire fine regardless of how large your network is.

BMW’s concern had to pay the recycling fee for 2006 in full, despite the fact that the network for dismantling cars was provided for more than 95 percent of the country’s territory. 

Part of the money from recycling fees is to go to municipalities that remove wrecked cars from public roads. Abandoned vehicles whose owners are not found become the property of the municipality after six months.

However, the distribution of funds has been put on hold for the time being, as a change in regulations is being prepared that will set new rules for allocating money for this purpose. 

Business

Thursday will see the third reading of an amendment to the Industrial Property Law and amendments introducing a so-called repair clause. It would give the right to freely produce visible spare parts of comparable quality to the original ones. 

Currently, auto manufacturers are trying to limit these possibilities by putting a patent on visible parts, which blocks the right of other companies to produce such parts. Currently, there are more than 200 such proprietary designs. 

According to an analysis by KPMG, which prepared a study on the effects of the repair clause, it will have an impact on the automotive sector. On the one hand, analysts recall warnings that it will entail the elimination of 50,000 jobs. On the other, they forecast an increase in the turnover of companies in industries unrelated to auto manufacturers, where 200,000 people work. They also signal that a drop in insurance premiums is possible. 

Taxes 

Buying a used car abroad means paying several administrative fees as well as excise and customs duties, and sometimes VAT. 

The situation is different when there is an import of a used passenger car from outside the EU countries. Then the importer fills out a customs document SAD, on which he shows the amount of customs duty, excise duty, and value-added tax, which he pays to the head of the customs office. A private person who imports a passenger car from outside the Union must additionally expect to pay VAT in the amount of 22 percent and customs duty (usually) in the amount of 10 percent. 

Traders’ cases 

The trader does everything to make money, but also tries to make sure that he is covered if a defect is detected. How? By the simplest methods, but as it turns out effective… only for a while:

  • the patent for broken navigation or no signal is to tell the customer that the disc is “in Germany” or that you need the right map because of the different types of readers,
  • damage is hardly noticeable, and if the speaker rattles, it is enough to either unplug it by connecting the fiber-optic circuit with a transparent groove or go into the equalizer settings and turn off its bass slider,
  • CD and DVD players have a function to divert attention from something you want to hide (such as an uneven engine),
  • if the player does not work in the car, then you need to get rid of all the discs from it (the customer will have no way to check),
  • always charge the battery before selling,
  • deleting the radiator and engine errors + washing the compartment gently so that it can be seen that it is not picked = reliable appearance,
  • leaking oil on the bottom of the engine needs to be rubbed with sand, then it looks like mud,
  • the leaking radiator can be hidden by flooding with water and driving on the air conditioning on (then it is said to be condensation from air conditioning, and water additionally does not leave a trace like a coolant – if it is a hot day than all the better),
  • traces of structural fracture after the bell, such as under the hood to be covered with old oil or tar (not many people will wipe off, because supposedly maintenance with bites, and check what is underneath),
  • proof of service can be to remove the filters under the hood and wipe them with a dry brush (the visual effect will convince the customer),
  • if the sunroof does not work it is worth offering the car in warm weather (no one will check whether it closes, or will be persuaded that there is no point in testing whether it works),
  • “air conditioning to be refilled” is standard if it does not work.

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