Old second hand car exports poses a cheap, desirable option for poorer, developing countries and an easy disposal option for richer countries.

An Analysis of Used Car Exports to Developing Countries

Every month, ships loaded with second-hand, low-quality, polluting vehicles leave ports in Europe, Japan and the United States bound for sale in poorer nations.

A 2020 United Nations Environment Programme (UNEP) report states that 14 million vehicles were exported to low and middle income countries between 2015 and 2018, with more than half ending up in Africa.

The European Union, ranked as the largest exporter, sent approximately 7.5 million vehicles abroad.

A large number of these outdated vehicles do not meet European standards on exhaust emissions due to poor fuel economy and higher emissions. The majority contain inefficient diesel engines, a major source of particulate matter (PM) and nitrogen oxides (NOx).

Both have been linked to global warming, air pollution and increased risk of heart attack, lung cancer and asthma. The transport sector currently contributes nearly a quarter of global CO2 emissions.

Developed nations appear to be conforming to environmental standards and signing relevant agreements, but this largely unregulated trade continues to prosper.

In the European Union, legislation known as the  ‘Euro’ emission standards has helped establish increasingly stringent emission limits on vehicles.

These measures correlate to an ongoing aim of improving air quality across Europe, and apply to vehicles ranging from Euro 1, developed in 1992, to Euro 6, developed in 2016.

Non-compliant vehicles cannot be sold in the EU while older vehicles may be banned entirely from entering some towns and cities at certain times. Norway announced its proposed ban on fossil fuel cars in 2016, planning to prohibit the sale of all petrol and diesel vehicles by 2025.

Similarly, the UK government plans to ban sales of petrol and diesel cars by 2030 in a zero-emissions bid. Germany, France, Scotland, the Netherlands and Ireland are all following similar schemes, prioritising the sale of zero emission cars and electric vehicles. 

Paradoxically, few rules are in place to administer the age and condition of car exports. Experts claim that up to 80% do not comply with European standards.

“In 2017, the average age of a diesel vehicle imported into Uganda was over 20 years old,” Jane Akumu, co-author of the UN report, told the BBC. “Around 30 countries in Africa do not have any age limit on cars,” she added.

On top of this, UNEP concluded that of the 146 countries importing cars, two-thirds had ”weak” or “very weak” policies to regulate vehicles. Nigeria, categorised by the report as “very weak,” is home to four of the worst cities in the world in terms of/with regard to air pollution. 

The transport sector currently contributes nearly a quarter of global CO2 emissions. The global trade in second-hand vehicles could therefore have stark consequences for climate change and public health.

The UNEP report’s authors propose that exporting and importing countries coordinate on a standard for these vehicles.

“On one hand, I think it’s unethical that these developed countries export vehicles that are not roadworthy on their own roads,” Rob de Jong, co-author of the report, explained to Global Citizen.

“On the other hand, why have the importing countries been waiting so long to put in place some minimum standards?”

Become A Vehicle Exporter

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Imagine this, an enterprise that involves the excitement of international trade and the allure of high-end cars. That's the opportunity a vehicle exporting business presents.

In simple terms, this business involves acquiring vehicles locally and selling them to international buyers. Thanks to increasing globalization and technology, connecting with customers worldwide is easier than ever. Elegant sedans, resilient SUVs, or vintage collectibles, the choice of what to sell is entirely yours.

This business presents a thrilling blend of negotiation, logistics, and diplomacy. It's not just about finding the right car for the right buyer, but also about understanding import-export regulations, shipping protocols, and foreign exchange rates.

To provide major value, consider specializing in hard-to-find models, high-demand vehicles, or offering auxiliary services like detailed vehicle inspections. The world of vehicle exporting is vast and explorative, and it's a journey worth embarking on for driven entrepreneurs; ready to conquer.

Becoming a vehicle exporter requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell vehicle exporter, or selling vehicle exporter online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size

$41.6B

revenue (monthly)

$2.3M

starting costs

$18K

gross margin

88%

avg product price

$3000

time to build

270 days

growth

Pay Per Click Advertising

business model

E-Commerce

time investment

Side project

Startup Costs

Min Startup Costs Max Startup Costs

Employee & Freelancer Expenses

$151

$252

Website Costs

$223

$7,015

Business Formation Fees

$600

$4,700

Vehicle Expenses

$0

$10,000

Retail Business Expenses

$1,250

$6,650

Advertising & Marketing Costs

$75

$3,986

Software Expenses

$162

$2,720

Office Space Expenses

$0

$100

Specific Industry Expenses

$0

$500

Total Startup Costs

$2,461

$35,923

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Successful Businesses

Business URL Rank

Copart

copart.com

3,029

BE FORWARD: Japanese Used Cars for Sale

beforward.jp

8,906

Florida Department of Highway Safety and Motor Vehicles

flhsmv.gov

10,883

TxDMV Home

txdmv.gov

20,174

Kijiji Autos Classifieds

kijijiautos.ca

22,676

Japan Car Trade

japanesecartrade.com

28,198

Import Export Data

exportgenius.in

36,507

Nikkyo cars: High Quality Japanese Used Cars For Sale

nikkyocars.com

38,279

CAR FROM JAPAN: Import Directly From Japanese Car Dealers

carfromjapan.com

40,266

Kuehne + Nagel

kuehne-nagel.com

42,753

Auto.com

auto.com

68,721

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Pros & Cons

Pros Description

Little startup costs required

The cost to start a vehicle exporter costs significantly less money than most businesses, ranging anywhere from 62 to 35,923.

Rewarding work

Starting a vehicle exporter can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Vehicle Exporteres have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Control of workload

With becoming a vehicle exporter, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

See all pros ➜ Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A vehicle exporter can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Work can be inconsistent

As a vehicle exporter, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.

Lack of benefits

With a vehicle exporter, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

Taxes

As a vehicle exporter, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

No safety net

Typically, as a vehicle exporter, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

See all cons ➜

Marketing Ideas

• 1

  Affiliate Program

  Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

  Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

  The affiliate typically gets a unique link where clicks and conversions can be tracked.

  Learn more about affiliate program ➜

• 2

  Direct Sales

  Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

  For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  Learn more about direct sales ➜

• 3

  Word of mouth

  Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

  Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

  According to Nielsen, 92% of people trust recommendations from friends and family.

  Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  Learn more about word of mouth ➜

See all marketing ideas ➜