Thread: Automobile Importing Opportunity

Hi All -

Background: I have been running a used car brokerage company in Canada for the last few years, specializing in used mid-luxury vehicles. My services include searching for used cars for clients (mainly importing from the US), as well keeping an inventory of vehicles for sale.

Opportunity: Over the last few months, the demand for SUVs has dropped significantly (due to high gas prices in Canada). Therefore, I have a large inventory of mid-luxury SUVs such as; Cadillac Escalades, Navigators, Explorers, etc. I am finding there is a larger demand for such cars in South/Central America and Asia and wanted to see if anyone was interested in importing a car to Panama. I have successfully exported some of my inventory to places such as the UAE. In Panama, I understand one can import a car duty free every 2 years if they are of Pensionado (sp?) status.

Please PM me if you would like additional information.

Every car I sell has the appropriate paperwork (from Canada/US); vehicle history, service history (if available), etc.

Thanks for reading.

No offense meant -- I know you are trying to provide a service and make a little profit -- but I for one hope those behemoths stay out of Panama. Traffic here is already a nightmare, gas is expensive, roads are narrow, and the last thing we need is more Chelsea Tractors. (Btw, service and parts for the American brands can be a real problem here.)

Thanks for the response/guidance! I definately don't want to have a negative impact.

I understand that SUVs are preferred due to the road conditions in South/Central America. Maybe smaller SUVs (ie/ RAV4s, CRVs, etc) would make more sense? I currently have a CRV in stock if anyone is interested, and can definately find additional such vehicles if required.

One more thing, without sounding like a slimy salesman, I have contacts to part suppliers/wholesalers if anyone requires American parts.

Again, thanks for reading!

Yes, RAVs and CRVs are immensely popular here. But after shipping costs, it's hard to believe that your price could be competitive. Plus, no warranty. :-( You might try your post on one of the many Yahoo Groups (just search "panama"); most will tolerate one commercial message per month (but no more than that). Also, try Craigslist for Panama.

Fair enough. Maybe Panama is not a right fit.

Thanks again!

If I were you, I'd be looking at Mexico. Shipping is easy/cheap, the market is huge, and ex-pat retirees there (on FM3 visas) have the same ability to import cars duty-free. There are a number of web forums where gringos in Mexico hang out, and you could present your proposition there.

Originally Posted by soltero

If I were you, I'd be looking at Mexico. Shipping is easy/cheap, the market is huge, and ex-pat retirees there (on FM3 visas) have the same ability to import cars duty-free. There are a number of web forums where gringos in Mexico hang out, and you could present your proposition there.

Great idea! Thanks for the advice!

I heard there was a market for diesel engines in the Toyota trucks in Latin America and getting them shipped and installed into Canadian Toyota trucks. My understanding is the US will not allow swapping of motors but Canada will. The Toyota diesel motors are reliable, huge amount of torque, and get great gas mileage.

In Panama, I understand one can import a car duty free every 2 years if they are of Pensionado (sp?) status.
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True, but not advisable for reasons Soltero points out.

In general, pensionados are being advised by their lawyers not to import cars. This is a change from 2 years ago.

In addition,
1-roads in Panama are good relative to other Central American countries.
2-high fuel prices are driving recent vehicular sales here.
3-finding/importing replacement parts for SUVs manufactured for the Canadian and US markets is difficult, time-consuming, and costly.

There are still people who are willing to pay for US and Canadian SUVs in Panama. However, to put this delicately, without existing connections, being selected as the provider would be difficult.

For the short term, I like the idea of Mexico. But note that they too are suffering from the fuel prices. The president has just frozen the prices of over 150 consumer items -- and producers will be looking for ways to cut costs. This, among other things, will drive a trend toward more fuel efficency.