Car Business from Dubai to Pakistan

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Car Business from Dubai to Pakistan

Postby siddiqui on Mon May 10, 2010 12:15 pm

Dear Fellows,

I am new to this forum, I have been searching for a discussion forum like this since long inorder to discuss my ideas with people who are already in car business.

By profession I am an Engineer but I am very much interested to start my own auto business in Karachi. How it would be to export old cars from Dubai to Karachi ? I really need some initial guidance to start with. Can some one please guide me about this, I will really appreciate your help.

BR,
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Re: Car Business from Dubai to Pakistan

Postby root on Mon May 10, 2010 11:51 pm

Siddiqui,
Welcome to the forums! Good question...always intrigued by business idea type posts!

Well, Dubai has both the RHD and LHD market. The RHD are mainly Japanese imports for re-exports.

Now, there are loads of Pakistanis already doing what you say, so I am wondering on what would be your USP?

Most of the dealers in the RHD market in Al-Awir are from Pakistan, and many also have setups in Japan where they buy directly from auctions - so they already have a buying advantage.

Given that import duties are high, maybe some way to reduce that on your imports can be the way to gain extra arbitrage to make some profit.
Come and discuss at the most lively forums about Cars, Bikes, 4x4s...at http://www.autodealer.ae at the Autodealer UAE Forums.
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Re: Car Business from Dubai to Pakistan

Postby siddiqui on Tue May 11, 2010 11:40 am

Dear Brother,

Thanks for your reply.

I know quite many people are already in to this business and they have captured the whole market, does it mean that being a beginner I can't choose this business ?

As far as RHD and LHD are concerned, RHD is more suitable for Pakistani market, what do you say ?

How can I get complete information about import duties and shipment charges ?

Waiting for your reply !
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Re: Car Business from Dubai to Pakistan

Postby root on Wed May 12, 2010 1:00 am

Import duties are stuff you need to check with customs to where you import i.e. Pakistan!

Shipment...it varies, depending on how you ship. Its more expensive in containers, cheaper in open ships. Price varies from few hundred dollars to 2-3000. There are plenty of ships going between Jebel Ali and Karachi so the rates are competitive.

What I say is that you can always do the business, but you need to think on how you will be better than others already established. Is that a dumb question?
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Re: Car Business from Dubai to Pakistan

Postby siddiqui on Fri May 14, 2010 11:42 am

Root thanks for your information.

I have following question, please help me out.

1. Which is the best way to buy a car ? Auctions or Dealers ?
2. Any website for Auctions or Dealers website ?
3. What would be the shipment cost of, for example, for 2 cars, Toyota Corolla or Honda Civic 2007 model ? Just to have an idea..
4. How long does it usually take in Shipment ?

One last thing in the end, are you also in car business :) ?

Waiting for your reply.
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Re: Car Business from Dubai to Pakistan

Postby root on Sat May 15, 2010 12:31 am

1. Probably Auction, but best is directly from a private seller. The more hands in the middle, the more the profit is split. But Auctions are not that big or well organized in UAE. For Pakistan, you are better off getting off Auctions in Japan - that is where you save a lot. And for that you need to be in Japan, not UAE.

2. Check the Auto directory - many are listed there. Golden Bells does auctions in UAE. Google em up.

3. About 1500-2000 dollars in a container I would guess if rates have not gone up recently.

4. A week. Again depends on when the ship leaves the port. The travel time is less than 2 days I believe.

Car Business? No, we at Autodealer.ae do not trade cars ourselves as a business. Just provide the marketplace and community! Hence, we are not biased!
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Re: Car Business from Dubai to Pakistan

Postby siddiqui on Sun May 16, 2010 7:12 pm

Thanks borther. Here I am again with my annoying questions.

I heard some where that you are not allowed to import more than 2 year old cars to Pakistan, is it true ?

How much a Toyota Corolla 2.OD SALOON model 2009 will cost me in Dubai, any idea ?

How much is the duty on cars in Pakistan ?

Do you need any kind of license in Pakistan to start this business ?

Will appreciate your help.
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Re: Car Business from Dubai to Pakistan

Postby azi malik on Mon May 17, 2010 2:15 pm

The law in Pakistan says that you cannot import a car that is older than 3 years.
The duty depends on the cc of the engine(how big the car is). One of my friends was importing a vitz i.e 1000cc and he said he would be getting a duty of around 3lac Rs in Pakistan.

Plus after getting the car, you need to find an agent in the port of Pakistan who can get your car out of the ship and do all the necessary custom clearance for you. Their fees starts from 35K.

I have heard the unloading of imported cars is very cruel and the workers take out the audio systems and things like gps out of the car... plus the way they take out the car from containers is awful... they don't remove all the safety chains... just start the cars and hit reverse... chains come off automatically :(
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Re: Car Business from Dubai to Pakistan

Postby siddiqui on Mon May 17, 2010 6:24 pm

Dear Malik,

Now after reading your post, I should immidiately through this idea of business out of mind :)
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Re: Car Business from Dubai to Pakistan

Postby azi malik on Tue May 18, 2010 9:18 am

Hello Siddiqui,

I provided the info not to make u completely abandon the idea of doing the export import business of cars to Pakistan.
I wanted to tell you about the risk factors and complexities involved in this business.

However, if you have the right contacts and everything planned accordingly, then things can go smoothly, and who knows you would be having the biggest import export business in Pakistan? :)...

Do a detailed research in this, and let us know also how it goes...
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Re: Car Business from Dubai to Pakistan

Postby sonya zafar on Tue May 18, 2010 10:12 am

i heard there is no duty on cars for disabled persons... may be u can get dose cars hehehe and then sale em :D
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Re: Car Business from Dubai to Pakistan

Postby siddiqui on Tue May 18, 2010 3:25 pm

Dear Malik Sahab.

I was just kidding, ofcourse I will take my chances.

Are you sure your friend paid 3lac PKR/car for 1000cc ? I don't recall where exactly but some where in the forum I heard that the duty on the cars are 7%. Do you know what is the best way to figure out all the laws associated with this business in Pakistan ?
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Re: Car Business from Dubai to Pakistan

Postby siddiqui on Tue May 18, 2010 3:27 pm

@ Sonya

Yeah! sound interesting :D
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Re: Car Business from Dubai to Pakistan

Postby root on Wed May 19, 2010 12:03 am

yeah, a Ferrari 458 for disabled :)
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Re: Car Business from Dubai to Pakistan

Postby azi malik on Wed May 19, 2010 1:14 pm

root wrote:yeah, a Ferrari 458 for disabled :)

hahaha Ferrari for disabled! i bet nobody will be getting a ferrari this way.

@siddiqui: I am not confirmed but this is what a Japanese dealer told my friend when he asked him about the way he could import a new vitz from Japan...

Lets see ill check with him and inform you again in this thread. :)
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