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We are going to analyze the case of a customer who has exported a BMW X7 from Dubai to Spain. But first, let's review the different types of customers we've had in this sector.
Customers who buy cars with mechanical problems
These customers assume a higher risk, but they can also earn a higher margin. They buy vehicles with mechanical faults to repair them and then sell them at a higher price.
Customers who buy cars with body damage
They buy vehicles with cosmetic damage to repair them with sheet metal and paint at a low cost. Although the margin is smaller than in the first case, the repair time is reduced.
Customers who buy practically new and functional cars
These customers only do minimal cleaning and benefit from a smaller margin, but with a faster and easier buying and selling process.
In the case of the customer that we are going to explain, he is a customer like the third party. He buys approximately 10 cars a month in Dubai and selects 3 or 4 of them to sell in Spain. As mentioned before, the customer performs basic cleaning of the vehicles before putting them up for sale.
The customer bought a BMW X7 for €40,000 in Dubai.
The customer chose maritime transport, which takes between 22 and 28 days to arrive in Spain. The costs involved are as follows:
- Car shipping: shipping (maritime transport) and land transport to the port of Dubai: 2500€.
- Customs in Spain: 10% of the price of the vehicle + insurance + shipping
- Internal taxes: 21% VAT on the value of the vehicle.
- IEDMT: it is between 0 and 16 of the value of the vehicle, it depends on CO2 emissions and the Autonomous Community.
- Pre-export inspection: 30€.
- Reduced price: from 50€.
- ITV: around 120€, depends on each Autonomous Community.
- Buy plate: from 9.5€.
- Road tax: variable according to municipality and type of vehicle.
- DGT Office Fees: 97.80€.
BMW X7 = 40,000€ (purchase value) + Major expenses + Other expenses = 55,000€
The total costs to export the BMW X7 to Spain were approximately 55,000€ (all in all). The customer sold it for 80,000€, while a new BMW X7 starts at 115,000€, which indicates that the sales price was not excessive either. So I end up making a net profit of €25,000, which represents a return of 31.25%.
With just one vehicle, he made a profit of €25,000, but considering that he performs this operation with 3 or 4 cars per month, it could generate between 40,000 and €50,000 per month, if we consider a conservative scenario.
If you want to know more examples, vehicle prices and the returns you can obtain, consult the following link:Everything you need to know to export vehicles from Dubai to Spain
At Gestoria Ibérica we have processed and helped many clients in the export of cars from Dubai to Europe and Spain. For more information on exporting cars from Dubai, you can consult the following links:
- Export Cars from Dubai to Europe
- Export Cars from Dubai to Spain
If you are interested in doing a similar business or need advice on any procedure, do not hesitate to schedule a consultation with us.
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