The Size of the Taxes Often Breaks the Economics

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Zami084
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Joined: Sat Feb 11, 2023 3:34 am

The Size of the Taxes Often Breaks the Economics

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While the trade-in program was the most popular option until 2022, today it is being replaced by online auctions, buyouts from the street (no trade in for a new car), and parallel imports. Market players and car enthusiasts have high hopes for the latter - it seems that this is an easy way to get access to favorite models that manufacturers no longer bring directly to Russia. Let's try to figure out whether parallel imports really help to cope with the shortage and whether it brings benefits to dealers and buyers. Most parallel import vehicles today travel to Russia from Belarus and Kazakhstan and natural persons act as carriers. Although companies can import cars themselves, of such projects and makes cooperation with private carriers more profitable.

In addition, the benefit of dealers from parallel imports is closely related to the exchange rate. An example is the recent weakening of the ruble from 60 rubles per dollar to 70 rubles and more. Auto market Turkey Phone Number List players who did not have time to pay the supplier before the rate jump obviously lose in this situation. After switching off SWIFT, there were difficulties with transfers to the UAE, Korea and EU countries. Businesses have to look for alternative ways to make payments - and this imposes additional costs on entrepreneurs. Finally, the risks are associated with the very cooperation with individuals. Most transactions here are prepaid.

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And the average waiting time is 60 days for vehicles from Europe or the UAE, and 90-120 days for models from Asian countries. And yet, enough cars come today for parallel imports. In 2022, the market narrowed noticeably as players began to look for new ways to fill stocks. Already in the spring, the best offers for parallel imports were sorted out - they bought cars on which they could earn the most. Today, it is much more difficult to bring a “profitable” car. Problems can be, for example, in the configuration: some engines and gearboxes were not delivered to Russia. Accordingly, the machines in which they are installed lose their liquidity.
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