Straw Buying Cars


#1

Good article here, it reads like the plot of Blow or Wolf of Wall Street, etc. Someone could make this into a movie:

A single car can earn a straw buyer anywhere from $500 to $7000 in commission. It’s enough to take the kids to Disneyland but nothing you can build a career on.

There is probably a Mercedes dealership close to you, and that dealership probably has a black GLS450 with a panoramic sunroof and an MSRP below $83,000. Go there. Point at the car. Say you want to buy it. Get a sales agreement with a total drive-out cost on it. Good luck; you’ll need it.

If you get that far, I’ll meet you around the corner with a cashier’s check. I’ll give you $2000 and another $1000 when you send me the title. By the time the car gets to the port, you and I will have . . . well, I’m not sure. Helped move the needle on the trade deficit? Not hardly. Participated in the arbitrage that keeps free markets honest? Maybe. Split $6000? Absolutely.


#2

Buying $88k SUV’s in the US and selling them in China for $240k is a pretty nice profit even after you pay shipping and taxes.


#3

Shitty version of my car in France:

Go figure. 100 grand? LOL

But can you do this with used cars?


#4

Well I think I just found some new side work.


#5

This was a huge issue with Range Rovers when I was shopping for mine. JLR wanted you to basically prove that you were not a straw buyer before they’d sell. @bing even knows someone who working in the auto industry and JLR wound’t sell him one.


#6

I know a guy that has been doing something like this for a while. It is the most money you will ever make per hour. lol


#7

What I don’t get is why do the dealers and the manufacturer give a shit? You’d think they’d be happy to sell as many as people were willing to buy. Why should they care that they ended up on a container ship headed to China?


#8

I would think the only reason they don’t like it is because they’re not the ones making that awesome profit margin, probably due to tax laws and such that they can’t get around.

I’m sure if a manufacturer found out that a dealership did significant straw buying they’d be shut down ASAP.


#9

Right, but the dealer does make money selling a car at retail price. Sure, they’re not making 200%+ profit on the car like the exporter does but they’re making just as much as they would if Joe Schmo from Clarence bought it. That’s why they’re in business, to sell cars. I suppose they don’t get service department money if the car goes to China but that’s no different than if I bought a car in another state and I’ve had out of state dealers still jump at the opportunity to sell me a car.