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What you need to know to avoid seeing your grey market car get ...
src: www.digitaltrends.com

Gray imported vehicles are new and used motor vehicles and motorcycles that are legally imported from other countries through channels other than authorized distribution systems of the manufacturer. The term parallel synonym import is sometimes replaced.

Car makers often arbitrate the market, setting the price according to local market conditions so that the same vehicle will have different real prices in different areas. The gray import vehicle avoids this profit maximization strategy. Local car makers and distributors sometimes consider gray imports as a threat to their franchised dealer network, but independent distributors do not mind because more cars from odd brands bring in money from services and spare parts.

For arbitration to work, there must be some way to reduce, eliminate, or reverse any savings that can be achieved by buying a car in a lower-priced region. Examples of such barriers include regulations that prevent imports or require expensive modification of vehicles. In some countries, such as Vietnam and gray market import vehicles have largely been banned.


Video Grey import vehicle



Ikhtisar

Gray imports are generally used vehicles, although some are new, especially in Europe where the EU is secretly approving gray imports from other EU countries. In 1998, the European Commission fined Volkswagen for trying to prevent potential buyers from Germany and Austria from going to Italy to buy a new VW at a lower pre-tax price; pre-tax pricing is lower in Italy, as in Denmark, due to higher taxes on cars. There is even a possibility for car buyers in the UK to buy the right-hand car in EU countries with right traffic where the left-hand drive cars are the norm.

Japanese used vehicle exporters are big global businesses, because rigorous road tests and high depreciation make such vehicles of little value (in Japan) after six years, and strict environmental legislation makes vehicle disposal expensive. As a result, it is advantageous to export them to other countries with left traffic, such as Australia, New Zealand, Republic of Ireland, United Kingdom, Malta, South Africa, Kenya, Uganda, Zambia, Mozambique, Malaysia, Bangladesh and Cyprus. Some have even been exported to countries such as Peru, Paraguay, Russia, Burma, Canada, and the United Arab Emirates, despite the fact that these countries are driving on the right. This is actually because of the RHD configuration of this vehicle that many of them are sent to LHD countries in the first place, for use as postal delivery vehicles. Many Japanese markets of Jeep Cherokees, for example, have found new uses with rural mail operators in the United States.

Thailand is the third largest exporter of new and used right-hand cars after Japan and Singapore, due to the mass production of 4x4 diesel vehicles such as Toyota Hilux Vigo, Toyota Fortuner, Mitsubishi L200, Nissan Navara, Ford Ranger, Chevy Colorado and more. Toyota Vigo is the most exported vehicles by parallel exporters. Unlike Japanese and Singaporean exports, the majority of Thailand's gray exports are new vehicles and the market is dominated by two companies. These trucks are also exported to Japan because Japanese domestic manufacturers no longer officially sell them through authorized dealers there.

Similarly, there are left hand drive exports (LHDs) using cars from Germany to countries in Eastern Europe, EU countries and LHD markets in West Africa. Some cars in the United States are sold only as exports by insurance companies because they are stolen and taken back, or damaged in other ways.

US gray imports are also found in Bulgaria, while UK gray imports have been banned in Serbia since 2012.

Maps Grey import vehicle



By country

United States

Since it has not yet been signed to the United Nations Economic Commission for European standards for car design (see World Forum for Harmonization of Vehicle Regulations), the United States continues to use unique motor vehicle safety and emissions regulations. It is developed and managed by the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA). They differ significantly from the international UN Regulations that are used worldwide.

Vehicle manufacturers thus face considerable expense for typing-certified vehicles for US sales - this number is not widely publicized, but Automotive News cites the 2013 model vehicle where this modification cost US $ 42 million. This cost primarily affects manufacturers and low-volume models, especially top-class sports car makers. However, large companies like Alfa Romeo and Peugeot also cite the "federalization" cost of their vehicle line as a disincentive to re-enter the US market.

The NHTSA and EPA regulations criminalize vehicle ownership that does not meet US standards. Exceptions exist for foreign nationals who tour the United States on their own vehicles and for imported cars for the purpose of Show and Display.

During the Second World War, American soldiers stationed in Europe began to experience the benefits of the agile British sports car, and many sent it home when they returned. There was no legal limit to this behavior until 1967. Some owners even acted as sales representatives for producers who were happy to help, leading to the official imports and craze of British sports cars in North America. Like any future wave of imported cars, this makes US manufacturers respond by introducing home-grown models, such as the Chevrolet Corvette.

Beginning in 1968, US regulations surrounding vehicle imports became louder, and many vehicles, such as the Mini, were soon expelled from the market.

Due to the unavailability of certain car models, demand for gray market vehicles emerged in the late 1970s. Importing it to the US includes modifying or adding certain equipment, such as headlights, sidemarker lights, bumpers, and catalytic converters as required by the relevant rules. NHTSA and EPA will review the documents and then agree on vehicle ownership. It is also possible for these agencies to reject applications and order cars that are destroyed or re-exported. Gray markets provide an alternative method for Americans to acquire the desired vehicle, and still get certified. Tens of thousands of cars were imported this way every year during the 1980s.

Penetrating the market through the first gray market, is a valid market entry strategy. Lamborghini Countach was one of the first gray market vehicles (1976-1985), and the Range Rover and the Mercedes-Benz G-Class were originally only available through the gray market as well. The automaker then makes a US model to meet demand. Many vehicles are not available entering the US through the gray market, such as CitroÃÆ'Â · CX and Renault 5 Turbo. The availability of these vehicles is increasingly successful, especially in cases where US vehicle models are less powerful and/or less well equipped than those available in other markets. For example, Mercedes-Benz chose to offer only low output 380SEL models in 1981 to Americans, some of whom wanted the faster 500SEL available worldwide. BMW has the same problem with their Turbo 745i.

The gray market is quite successful so it eats significantly into the North American Mercedes-Benz business and their dealerships. The corporation launched a successful million-dollar congress lobby attempt to stop imports of private vehicles not officially designated for the US market. An organization called AICA (Automotive Importers Compliance Association) was formed by importers in California, Florida, New York, Texas and elsewhere to counter some of these actions by Mercedes lobbyists, but the Motor Vehicle Safety Compliance Act was passed in 1988, effectively ends. import private vehicle market gray to the United States. There is no evidence presented that the gray-gray vehicle's safety performance differs significantly from the US model, and there are allegations of inappropriate lobbying, but the issue has never been filed in court.

As a result of prohibited practices, the gray market declined from 66,900 vehicles in 1985 to 300 vehicles in 1995. It is no longer possible to import non-US vehicles into the United States as a private import, with four exceptions, none of which allows Americans to buy new vehicles that are not officially available in the United States.

A vehicle originally not built to US specifications may, under certain circumstances be imported through a registered importer that modifies the vehicle to comply with US equipment and safety regulations and then declares it compliant. Also independent commercial importers are modifying vehicles to comply with US emissions regulations and then declare them compliant. Those who import unsuitable motor vehicles sometimes carry more than one car at a time to spread the enormous cost of destructive testing, modification, and safety certification. Damaging collision testing is not always necessary if the vehicle can be shown substantially similar to the model sold in the US.

As before G-Wagen and 560SEL , Mercedes-Benz was able to use the gray market to read market signals - with Smart Fortwo, imported this way in 2004-2006, before its official release in the US in 2007.

Even Canadian market vehicles may not meet these requirements. Because Canadian regulations are similar to those applicable in the United States, a person may import vehicles manufactured to Canadian motor vehicle safety standards if the manufacturer of origin issues a letter stating that the vehicle also complies with US motor vehicle standards. The decision to issue compliance letters is solely at the discretion of the manufacturer, even if the vehicle is found to meet US standards. Prior to issuing the compliance letter, most manufacturers requested proof that the owner of the vehicle was a Canadian resident, and that the car was registered and used in Canada for a minimum period. This is done because the manufacturer maintains a separate pricing structure for the US and Canadian markets.

In 1998, NHTSA provided vehicles over 25 years of leeway from the rules it regulated, as it was considered a collector vehicle. However, an important exception is California, where vehicle emission requirements make it difficult to enroll classic vehicles from abroad.

Some Americans are interested in Japanese domestic market vehicles, such as the Nissan Skyline. In 1999, a California company called Motorex had a number of proven Nissan Skyline R33 GTS25s. They submitted their information to NHTSA and petitioned for 1990-1999 GT-Rs and GTS to be eligible for importation. Many Skylines are then imported through Motorex. This went on until the end of 2005, when NHTSA learned not all 1990s until 1999 the Skyline model would appear identical in crash testing. Motorex has submitted information only to R33, but has confirmed that the data is applied to models R32, R33, and R34. NHTSA determined that only R33 model 1996-1998 has been proven capable of being modified to meet federal motor vehicle safety standards, and only eligible models to import. In March 2006, Motorex suspended all imports and the principles of Motorex Hiroaki "Hiro" Nanahoshi were arrested and held on bail of $ 1 million on financial, kidnapping, and assault charges. Nissan developed the Nissan GT-R 2007 to meet this market demand in the United States.

Canada

Cars that were originally not manufactured for Canadian market specifications can be legally imported after the age of 15 years or older. This has led to the import of many Japanese sports cars such as the Nissan Skyline. The only category exception for the 15-year rule is that many - but not all - vehicles manufactured for US market specifications can be legally imported into Canada under a compliance and inspection modification program administered by the Import Vehicle Registrar. Typically, modifications to meet Canadian standards include installation of daytime running lights and anchor moorings to enable safe attachment of infant car seats, documentation showing that any necessary repairs in response to a complete original manufacturer's drawing, and passenger cars assembled on or after 1 September 2007 is also required to have an immobilization system that meets the CMVSS standard 114. Vehicle labeling to indicate its import status, to warn that the odometer is calculated in miles (as made-for-Canada odometers have been using kilometers since 1976) and to translate the corresponding warning labels with safety (such as an airbag treatment procedure) is usually also required. Speedometers in the US and most Canadian vehicles show both miles per hour and km/h, either with double calibration or with a set of numbers that can be made to display miles or kilometers in driver options, so they are usually left unmodified.

In March 2007, Transport Canada initiated a proposed regulation to amend import laws in such a way that vehicles originally not manufactured for Canadian market specifications would qualify for imports only after they were 25 years old, rather than the 15 year cutoff rule. The main thrust behind this proposal is the significant influx of Japanese market vehicles in Canada in recent years, especially in Western provinces such as British Columbia due to geographical proximity to Asian departure ports. The BC General Insurance Corporation, Insurance Corporation of British Columbia, in 2007 released research findings that the right rider vehicle was involved in 40% more accidents than the left-hand drive in the province.

New Zealand

In the 1980s, New Zealand reduced import restrictions, and reduced import tariffs for cars. As a result, large volumes of used cars from Japan appeared in local markets, when most cars in New Zealand were locally assembled, and expensive compared to other countries, with most of the used cars being relatively old.

Local buyers now have a much wider selection of models, but despite the higher specifications of the so-called "NZ New" cars, there are many problems with "clocking" or odometer fraud, with a curved back odometer to show much lower mileage. Other problems include vehicles damaged in accidents in Japan. This is different from that imported from Australia, where the vehicle's history, including removal, is already available from the insurance company.

However, the widespread availability of Japanese imports encouraged official importers to reduce the price of new cars, and in 1998, New Zealand became one of the few countries in the world that abolished all import tariffs for motor vehicles.

The gray market vehicle consists of the majority of cars in the national fleet. The import of these used goods has reached 'normal' status and is used and serviced without commentary throughout the community. A large industry that serves and supplies parts for these vehicles has been developed. After years of trying to stop gray imports, the car companies themselves have been involved, importing in competition with their own new models and providing owners with spare parts and repair services. Russia and many African countries, though not South Africans where imports of illegally used cars, import large quantities of used vehicles from Japan and Singapore.

However, a lot of used vehicles are imported, 94.6 percent of whom are from Japan, most of which are made in Japan. Most of the other brands are Germany, such as Audi, BMW, Mercedes-Benz, Porsche and Volkswagen. There are smaller numbers than the United States making such as Chevrolet and Chrysler, which are built in the right drive for the Japanese market. Despite the weight reduction from 2005, total imports of used vehicles are higher than those of vehicles first registered in New Zealand. In 2006, 123,390 registered overseas vehicles, compared to 76,804 new vehicles.

Vehicles used must, with some exceptions, be right-hand drives, and they must comply with recognized European, Australian, Japanese or American emissions and security standards, or they are not eligible for import into New Zealand.

In some cases, a left-handed vehicle may be imported to New Zealand if it meets certain conditions or is a special vehicle. Left drive vehicles of 20 years or more usually do not have to meet special requirements but must weigh no more than 3,500 kg.

ireland

Imported Japanese used cars have been fairly common in Ireland since the 1980s. Imported cars are cheaper than local used cars because of the very low value of used cars in Japan (and to some extent, generally used products), and much larger range of specifications available on Japanese models compared to very limited ranges. sold locally - even when compared to the UK, the range of Japanese car models can be severely limited - in large part due to the high vehicle registration tax and other taxes levied on new cars sold in Ireland.

For example, Toyota Corolla was sold in the late 1980s through the late 1990s (the E90 and E100 series) only available in Ireland in one level of specification, with some features and only a 1.3-liter gasoline and diesel engine base. In Japan, 1.5 and 1.6 liter engines are also available, with approximately 6 different trim levels, options such as sunroof, central locking and electric windows are available on many specifications as early as 1989, ABS and optional driver airbags since 1991, four wheel drive, and GT model performance. A very basic saloon and diesel engined model with automatic transmission also attract taxi drivers.

In recent years, Japanese imports have become less common with typical family cars, probably due to the big changes in the Irish economy over the last 20 years - people in general have more income now, and new car sales have soared. Imports from Japan have become more of a special market now - importing sports models that were not originally available in Europe such as Mitsubishi FTO, Toyota Corolla Levin/Toyota Sprinter Trueno, Toyota Starlet Glanza and Honda Integra have become very popular, and sports cars like Nissan Skyline GT-R, Toyota Supra and Mazda RX-7 are more easily available as imports. Also, small commercial car models like Daihatsu Midget II and Nissan S-Cargo are used by some businesses as advertising aids, as they are pretty typical and eye-catching on the streets of Ireland.

No modifications are required for Japanese import cars to be registered and piloted on the streets of Ireland. One of the disadvantages is that Japan uses FM radio waves which are different from elsewhere, so band expander or replacement stereo system is required to receive locally used FM bands. Like all other cars used on public roads in Ireland, Japanese imports must pass the National Car Tests.

Other second-hand imports sold in Ireland come from the UK, the most easily identified is from General Motors, which labeled his car in England as Vauxhalls, unlike Opel as in Ireland. In 2007, the number of cars imported into the Republic of Ireland from Northern Ireland and Great Britain was at a record high due to the high taxation of new cars in Ireland and the fact that British cars have higher specifications than the Irish cars. This trend is highlighted by RTÃÆ' â € ° in the consumer program entitled "Highly Recommended".

English

In the United Kingdom, many people choose to buy new cars in other EU member countries, where pretax prices are much lower than in the UK, and then import them into their own country, where they pay only the value of the UK additional tax (VAT). This is especially true in Northern Ireland, as the pricing before tax in the Republic of Ireland is kept low because the vehicle registration tax is levied on VAT. Other UK buyers can also request models at RHD when ordering from European continental dealers for small supplements. Motorcycle dealers in the EU are encouraged by the EU competition law to provide a right-hand drive model at the same price as the LHD model if the buyer requests it. In fact, such imports are known as parallel imports.

Guarantees on new cars purchased in EU member states apply throughout the EU, meaning that UK residents who have purchased new cars in other member countries and then import them into the UK will be covered by the same warranty. However, while UK guarantees tend to be for three years, those in other EU countries may be for only one or two.

There are also some Japanese import cars found in the UK, the most popular being the Mazda Eunos Roadster and Mitsubishi Pajero as well as performance cars like Nissan Skylines, Mitsubishi FTOs and highly tuned Subaru Impreza and Toyota Supra variants that have never been officially imported into the UK. These cars tend to be cheaper than official UK imports, but often have a better level of Japanese domestic market specification when compared. The range of Japanese vehicles in the UK is increasing all the time because British customers see Japanese vehicles with high mileage, low mileage on the road. Every month new models are being imported by dealers and quickly become popular in the UK market.

Australia

In Australia, the commercial import of used motor vehicles is significantly regulated and restricted. Permitted imports are limited to so-called special and enthusiastic vehicles, or most cars manufactured before January 1, 1989. Until this rule comes into effect in early 2004, cars over 15 years old can be imported, and need to get a road-worthy certificate (required for registration transfers in many countries) and frequent modification of security to ensure that they meet the rules that will apply at the time of manufacture.

To bring a special or enthusiastic vehicle to Australia, the importer must apply to get the car added to the SEVS register, or import the car already listed on the list.

Russian

In Russia, gray imports, both new and used, consist of, at certain points, up to 80% of all fleets of cars, because domestic production is unable to meet market demand, both in quantity and in quality, especially in the early days of the mid-1990s.

In western Russia most of the imports are from Germany, while east of the Ural mountains where shipping costs make German imports and domestic production very unattractive, a growing industry for importing used vehicles from Japan is developed. Although Russia is a left-hand drive country, RHD vehicles remain legal there, provided some adjustments (eg retuning headlamps) are made, but these are cheap and easy to do, thus making cheap and well-developed Japanese cars, trucks and tractors strong enough to withstand severe Russian climate, poor roads, often inadequate service and questionable fuel/oil quality) are very attractive to customers. In major import centers like Vladivostok and Yuzhno-Sakhalinsk, a large-scale service and aftermarket industry is developed, including spare parts depots, auction houses and logistics centers, all directed to serve and support this endless import drive. The authorities are trying to fight this phenomenon to protect the domestic industry, but the effect has so far been mixed. While increasingly stringent technical requirements and rigid import tariffs have some effect, they have only managed to force local people to import newer and more expensive vehicles, and to create quasi-legal means to circumvent this rule. Japanese manufacturers themselves have also stepped in, creating a local assembly plant that produces a new left-hand drive model to try to compete with gray imports.

China

The parallel market has existed to some extent in China for several years, especially in port cities of Tianjin and Dalian. The free trade zone of Shanghai has a 'car dealership' where new cars imported from other regions are sold. Due to the price of the arbitration, these vehicles can be significantly cheaper than the same vehicles available from authorized distributors.

Philippines

In the Philippines, the main source of imported gray market vehicles, both passenger and commercial, is Japan. Second is Korea, the third is the United States through trans-shipment through Japan. Only one port, Port Irene, Cagayan, is open to gray market passenger vehicles between 2008 and 2014. Several disagreements over the legality of passenger vehicle imports appeared and led to the ban on Irene Port. Currently Executive Order 418 has been enforced, thus prohibiting the import of used passenger vehicles to the Philippines.

Commercial vehicles, special purpose vehicles are not under EO 418 and thus are currently being imported to Subic and Poro Point, San Fernando. Subic sees about 1 cargo ship per week, and has many licensed searchers. The second port, Poro Point, per February 2014, once per month and only facilitated by Forerunner Multi-Resources as a licensed tracker, and SASTRAD KK in Japan as sole sender.

There is a trading area of ​​gray mini trucks from Japan developing in Cebu. Mini trucks are chopped in Japan, imported as * parts * and reassembled by joint welding parts. Inexpensive to buy, they are a staple of small business transporting goods.

Japanese

In Japan, despite laws against tighter gray import products, and domestic automakers and authorized dealers must adhere to the standard dimensions of vehicles and other regulations different from Europe and the United States, the laws against very loose gray import vehicles due to the absence of import tariffs, and there are some gray imported vehicles that have never been officially sold in the domestic Japanese market. Starting from small city cars like Toyota Aygo and Smart ForTwo, to sports cars like AC Cobra and Chevrolet Camaro, to commercial vehicles and pickup trucks like the Toyota Tundra. Most cars are imported from their home country, and some are converted to RHD, although some are later introduced to authorized dealers due to popular demand.

Some gray market importers are trying to import only domestically-made exports, such as Subaru BRAT and Infiniti FX, back to the Japanese gray market. In Japan, the term used to refer to this scene is called Gyakuyuny? ( ??? , literally "Reverse import", usually shortened to "reimport") , and this is primarily applies to Japanese branded vehicles. Also, because of the NOx law and several other different rules, pickup trucks like Toyota Hilux are no longer officially distributed in JDM, so importers continue to import foreign-built trucks to Japan.

The Gyakuyunyu concept is referenced in the music album Gyakuyuny ?: K? Wankyoku .

Swedish

In Sweden, the main source of gray market vehicles is the US through Germany, which has more liberal legislation and better tax deals for new imported cars. Many used cars are also from Germany, which has a larger domestic market and strict road feasibility tests. There is no age limit for imported vehicles, as it is.

Thai

In Thailand, most imports are expensive gray, rare, and/or sports cars. Most are the right-hand drive from the UK or Japan, though some are brought from the United States (as the left-handed car).

Mercedes-Benz Thailand, the official distributor, does exist, but many Mercedes-Benz cars are imported and sold by gray importers. In 2011, Mercedes-Benz Thailand has a new policy to not provide guarantee work for gray market imports.

Trinidad and Tobago

In Trinidad and Tobago almost all imports used are from Japan, with some vehicles coming from Thailand and Singapore. Prior to February 2016, cars under six years could be legally imported. Since February 2016, no cars can be imported and registered if they are over four years old. Import licenses are required and most import through dealers. No new importer dealers are allowed.

How Much? $240,000 For A Grey Market Tesla Model X In China
src: thumbor.forbes.com


See also

  • Gray Market
  • Parallel import
  • Japanese used vehicles are exporting
  • Katrina car

Your Best And Worst Stories Of Owning A Grey Market Import Car
src: i.kinja-img.com


Note

Source of the article : Wikipedia

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