Maximising Profit: Strategies for Successfully Exporting Luxury Cars | GVE London – Blog

Exporting a car does two things: it spreads the car’s culture and gives our fellow enthusiasts access to cars unavailable in their country, and, obviously, acts as a business model that brings in profits. Whether you’re running a trade showroom or a supercar showroom, the journey to success in this lucrative venture requires more than just identifying the right car to export. You need the right strategy, the right partnerships, and an understanding of the market. So, in this blog post, we’ll lay out some of the key strategies that will help you maximise your potential for profit.

Understand The Market and The People

Before you export a luxury car, you must first understand what the market wants; money is where the demand lies, after all. Luxury cars are expensive, and it’s known that there is a market for them in the USA and Europe. However, with the growing affluence of people and increasing disposable incomes, Asia and Europe, too, are keen on getting their hands on these high-end vehicles.

However, it is also best to research thoroughly and go deeper, as different regions have varying preferences. For example, American supercars haven’t really made an impact on the Asian car market the way German vehicles have. Another example is that Australia has a major demand for luxury vehicles, but within major cities like Melbourne and Sydney, most regions tend to prefer SUVs (which makes the British-origin Range Rover a perfect vehicle for the market).

Build Solid Relationships with Partners

The car community is well-knit, and relations with the right people are beneficial for any business. When you run a trade showroom, the best way to maximise your profits is by working with and building strong relationships with suppliers, dealers, customers (needless to say), and even customs brokers.

Selling a car is merely step one, and is often the easiest part. An individual who wants a 911 GT3 will likely purchase it from you—no issue there. The issues start to arise when compliance and logistics requirements need to be dealt with, as well as ensuring you’ve actually got the vehicles currently in demand in stock. Whether it’s the supercar showroom you source cars from or the customs agents who clear your vehicles, a trusted network makes all the difference.

Understand Import Regulations and Taxes

Consulting with trade experts or legal advisors can ensure compliance and streamline the export process.

You can purchase an Aston Martin, but the James Bond lifestyle that one assumes would come with it is a fantasy, alas. No matter where you’re exporting, you cannot sneak a vehicle in; you must comply with the local laws and regulations, and different countries have varying import regulations, taxes, and duties. Taxes and duties when exporting cars from the UK can be particularly complex, as they depend on factors such as the vehicle’s value, destination, and applicable trade agreements. For example, Australia doesn’t hold back and imposes a hefty Luxury Car Tax (LCT) that kicks in for cars over a certain value, along with strict compliance regulations.

If you are unaware of these issues, you won’t be able to:

• Inform the buyer about the exact cost of the vehicle
• Calculate your profit margins
• Have your car sent back or quarantined due to not meeting environmental and compliance regulations

Read Also: Supercar Export Services: Choosing the Right Partner for Your Needs 

Choose the Right Shipping Method

Luxury car exports aren’t as simple as putting them on a boat and waving goodbye. If that were the case, both supercar showrooms and shipping companies would be making much more profit.

When it comes to international shipping, you do have options available, as you might expect; some are safe, and some aren’t. Roll-On/Roll-Off (RoRo) shipping is the cheapest, but it offers less protection for your vehicle. Container shipping is more expensive but far safer, which is why it’s often the preferred method for high-value cars. Air Freight is also expensive—far more expensive than either of the two stated methods—and is usually reserved for vehicles that are extra special or when time is a major factor. Always consider the value of the car and the destination country when deciding which shipping method to use.

Conclusion

If you’re planning on running a trade showroom, remember that customer experience cannot be subpar. Individuals who indulge themselves in the purchase of supercars or high-end cars are, for the most part, enthusiasts, and they often become recurring clients. Buyers of luxury vehicles are often willing to pay more for better service.

So, long story short, maximising profit in luxury car exports requires a combination of understanding your audience, staying competitive in terms of cost, making use of the right marketing tactics, and offering a personalised customer experience. Furthermore, being enthusiasts, we not only perform the usual repairs and service but can work on customisation, modifications and detailing as well. To know more, hop on a call with us today!