Dealers of vehicles need to take care of several aspects of their business in order to earn a good amount of profits. If we restrict this piece of writing for those dealers who buy used or second hand cars and then sell them with a small slice of margin then there would still be a lot to discuss. Traders buy cars from local markets that can range from used to second hand to slightly used cars. The price would range from lowest to highest for these three categories in a row. The dealers who buy used cars from local market also imports second hand cars from international markets. The size of dealers’ business decides whether it is likely to be involved in the business of import. Purchasing cars from international market might be a profitable option for local dealers but it totally depends upon the cost of import duty. Such amount of duty sometimes cost high and eats up the profit margins. So before importing a car, the dealer must be sure about the chargeability of the import duty.
For contacting auto dealers in UAE has many sources like newspaper, internet and billboards where such dealers posts their advertisement. The dealers take cognizance of several factors before buying a car. Dealers mostly take a good look at the car before buying it because they need to later sell it to some customer so they satisfy themselves from every aspect of the car’s performance. Mazda trader ensures that the operational aspects of the vehicle are fine. This includes checking the engine to ensure whether or not the car has experienced any major repair and maintenance. The dealers usually have experienced mechanics of their own that thoroughly check the vehicle. The dealer checks whether all the head and back lights are working properly, whether the AC is making the car cool, whether the car doors can be opened and closed easily and whether the tyres of the vehicle are same and there is a spare tyre and tool kit is available with the car. Trading in Dubai is a profitable business. Traders buy cars from local market and after doing some minor modifications they sell it to local people with a thin slice of margin.
The cars sold out by the dealers are bought by consumers at varied modes. The best and most secured of all is to sell out the car to those who offer full payment in cash. As new financial modes are available for consumers which primarily include leasing, an average consumer now affords a car without falling in the web of large payment instalments. Interest rates are stable and the lease period range from three to seven years for an average car. If a consumer obtains a car from the dealer on lease or by arranging the bank finance, the dealer still gets the full amount of payment. The customer then makes regular payment to the bank or lessor and at the end of lease term the vehicle is transferred in the name of the customer. Before making the final payment the vehicle remains in the name of the financial institution that has financed the deal.
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George Thomas is a mechanical engineer who have years of experience in Auto industry. He is also giving advice for Trading in Dubai and other Automobile companies specially Porsche Dubai.
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