by The number of used cars from the USA on our roads is growing every day. Ukrainians are not afraid to take damaged cars from auctions and are ready to take risks. 
Taras Hetmansky, the founder of the car-sharing service Getmancar, shared his experience of importing used cars from America on Facebook. He has bought cars at auctions more than once and spoke about the most important nuances and pitfalls. Here is his post in full.
- You can check a car in the USA. The check is possible, but only with the help of online services. Their truth is also relative. For money, you can also influence there.
- We inspect the car before bidding. You can only inspect from photos, which are often taken deliberately not from all angles.
No one checks the car in person and if someone tells you they do, they are deceiving you. Viewing a car costs $250, regardless of whether you buy it or not, but fail to win it at auction. I assume you have acquaintances who will do everything for the price of a hot dog and gas, still, you will not have a budget of less than $200.
I have been told hundreds of times that they inspect cars and know everything about them, but these words break against practice.
- There are main auctions where everyone buys:
– Copart – characterized by a large number of damaged cars, deceptions, car valuations do not align with reality in 50%. Why do people buy then?
Big choice. Price is cheaper than everywhere else in most cases. Risk is rewarded with a win. – Mannheim – valuations match, photos are quality, rarely find deception, the price is often 20% higher than Copart and the choice is smaller. Sometimes not even worth playing, already more expensive.
– IAAI – the insurance company’s auction, it offers less than Copart but is of higher quality. In general, want to buy many and cheaper – Copart, sometimes IAAI. Want more reliable and expensive – at home in the car dealership, or engage with Mannheim.
- The company guarantees the car I bought. This is more like a fiction.
The company won’t do it. Friends, it is quite possible that the car will arrive without an engine, and the electric one without a battery, yet nothing is said in the specification. Needless to say, if any Leaf on Copart lacks such a characteristic as battery remainder.
- They import damaged cars to earn more! Damaged cars are brought because:
a) Bringing a whole car is not profitable, you can immediately buy a cheaper car in Ukraine
b) If you buy a damaged car, you know exactly what the problem is
c) If the car is whole and at a good price, prepare for a surprise, something is clearly not stated, this is more about Copart
d) Repairing cars in the USA is expensive, and the car is not that expensive. Not profitable to do.
- They import heavily damaged cars. It doesn’t make sense if we’re talking about some basic mass-market models. Heavily damaged ones can only be taken for parts, and that’s what many car businessmen do.
- Buying a car in the USA is more profitable than in Ukraine. No. The market has grown significantly over the past year, and in Ukraine, on the contrary, it has fallen due to the saturation of the offer.
Therefore, buying there, you will not always win. For example, I saw a great car offered for $14 in Ukraine, 2019. The price of such a car on import (cost price), which our managers would lay down is 13-14$. Makes no sense, took it right here and saw everything. 13-14$ is with a term of 6 months, fuss, and possible surprises.
- I want a car to be delivered to me without prepayment.
The fact is that this is also not possible. As soon as the bet was won you have a short time to pay, often 12 hours. Did not contribute – a fine of 400-500 dollars. The car is loaded and goes in the name of the client, if not, then the supplier will pay more taxes and your car will cost even more in delivery.
- The terms are never violated, after all, there is a contract and the intermediary is obliged to pay a penalty. This is also a lottery.
How many times do you encounter earthquakes, pandemics, or something else that causes a delay. What could it be? Hard to say. In my experience, there were also 2-4 months.
There are so many links in the supply chain, and the intermediary earns 500-1000 dollars on you (at best), that if he pays the penalties and takes the risks, he will likely sell everything than ever make money.
- There are cheap cars there for 2-3 thousand dollars, but I am given an 8 thousand contract here, earnings.
There are no earnings there, such transportation costs, customs clearance and …., I’m sure the company will easily tell you their earnings, it will not be more than 1 thousand dollars, and often up to 500 dollars for a lot of headaches.
