Becoming a used car dealer in Santo Domingo

mboydii

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Mar 1, 2011
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Is it possible for someone to move to Santo Domingo and start a used car lot there. I am a car dealer who currently lives in Columbus Ohio and I plan to move in the next couple of months. Is it possible to import used cars from the US? If so can someone point me towards the right directions where i can find the correct information.
-Michael
 

melphis

Living my Dream
Apr 18, 2013
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Unless you want to do the paperwork and the expense of becoming a resident I think you are wasting your time. The auto industry here is controlled by a few prominent citizens and it would be very difficult to get on the inside of this group.
 

mboydii

New member
Mar 1, 2011
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Couldnt I just operate through someone that is already a resident? Someone I trust there?
 

PJT

Silver
Jan 8, 2002
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Shark Bait ?

Is it possible for someone to move to Santo Domingo and start a used car lot there. I am a car dealer who currently lives in Columbus Ohio and I plan to move in the next couple of months. Is it possible to import used cars from the US? If so can someone point me towards the right directions where i can find the correct information.
-Michael

Wondering why move to the DR when there is more opportunity and protection in the US?

How much time have you spent in the DR to immerse yourself into the culture, especially the business culture?

Yes, you can import cars from the US. Used cars that enter the country can be no older than 7 years.

News releases in recent months indicated three associations of about 1200 used car dealers complained to the government that Customs increased the valuation of used cars entering the country. The dealers allegedly are saying the action of Customs is forcing them into bankruptcy. Unless you belong to an association you have very little or no protection from the sharks circling you. If you have no Dominican roots you are shark bait.

The business is one of fierce competition for the few buyers able to afford used cars. You could do better selling aftermarket or used auto parts.

You need to research in the DR.


Regards,

PJT
 

melphis

Living my Dream
Apr 18, 2013
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You don't seem to want to hear us. Send a pm as you where advised in post #2. If you still want to go ahead bring bags of cash and you will do well. Really you will be fine.
 

mboydii

New member
Mar 1, 2011
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So what you are saying is that I couldn't make money selling a 2010 vehicle there when I am buying it for $3000 here in the states. I am almost tripling my money here. Why couldn't I do something remotely close to that there when the prices seem to be even higher there?


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Tamborista

hasta la tambora
Apr 4, 2005
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Did you include shipping and tax, plates....etc?
You are going to pay tax on what aduana thinks it is worth, NOT what you paid son.
 
Jan 9, 2004
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Wondering why move to the DR when there is more opportunity and protection in the US?

How much time have you spent in the DR to immerse yourself into the culture, especially the business culture?

Yes, you can import cars from the US. Used cars that enter the country can be no older than 7 years.

News releases in recent months indicated three associations of about 1200 used car dealers complained to the government that Customs increased the valuation of used cars entering the country. The dealers allegedly are saying the action of Customs is forcing them into bankruptcy. Unless you belong to an association you have very little or no protection from the sharks circling you. If you have no Dominican roots you are shark bait.

The business is one of fierce competition for the few buyers able to afford used cars. You could do better selling aftermarket or used auto parts.

You need to research in the DR.


Regards,

PJT


Cars can be no older than 5 years.

The chief complaint by the used car dealers is that the government has not adjusted the price of the used car values on which the dealers pay tax.....to actually reflect their real value.

Of course any downward adjustment as to value.....would mean less tax money for the government.

By way of example, a 2011 Toyota Camry has had a valuation of 619,000 pesos for so long....I stopped looking to see when Aduana would actually revise their valuation. That is the chief complaint of the used car guys. The taxes are so high it is difficult to buy, ship, pay taxes, and make a profit.

That of course, and the fact that so many cars are imported here to wash money.



Respectfully,
Playacaribe2
 

mboydii

New member
Mar 1, 2011
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@playacaribe2
So you are telling me that if I could get that same exact car. The 2011 Camry for $4000 I couldn't make any money with it there, including the shipping, taxes and fees?


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Jan 9, 2004
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@playacaribe2
So you are telling me that if I could get that same exact car. The 2011 Camry for $4000 I couldn't make any money with it there, including the shipping, taxes and fees?


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First off....I do not believe you can buy a 2011 Camry for 4k.....but let's assume you can.

You will pay taxes on what the government values the car NOT on what you paid.

So for our purposes a back of the envelope calculation should be.....50% of 619,000 pesos, plus your $4,000 cost to obtain.

Now when you get it here.....plan on it sitting for at least 3-6 months or longer....nothing moves quickly here unless you have a special order.


Respectfully,
Playacaribe2
 
Jan 9, 2004
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Then how is anyone making money?


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Margins are thin......and even thinner as you compete with cars imported using laundered money.

Most of my clients have friends and family here, so a lot of what they buy is pre sold at a set profit margin above taxes, shipping, first plate etc.

Respectfully,
Playacaribe2
 

AlterEgo

Administrator
Staff member
Jan 9, 2009
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South Coast
First off....I do not believe you can buy a 2011 Camry for 4k.....but let's assume you can.

You will pay taxes on what the government values the car NOT on what you paid.

So for our purposes a back of the envelope calculation should be.....50% of 619,000 pesos, plus your $4,000 cost to obtain.

Now when you get it here.....plan on it sitting for at least 3-6 months or longer....nothing moves quickly here unless you have a special order.


Respectfully,
Playacaribe2

And what about the first plates??? Are they included in that 4K? I think we paid $1500-2000USD for those




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