What is the Used Car Brokerage Business?
1 Answers
There are three types of used car business models: auction companies, brokerage companies, and dealership companies, each with certain operational restrictions. Auction companies: They cannot be a party to the transaction and are only allowed to act as intermediaries and collect commissions. Brokerage companies: They engage in consignment sales, information services, and provide sales venues, among other services. Dealership companies: They purchase vehicles from sellers and resell them, and are not allowed to engage in intermediary services. Below are the considerations for personal used car transfers: 1. Ensure the title certificate is legitimate: Pay special attention to the embossed number, engine number, and registration date on the title certificate. Besides verifying these details, check for any signs of alteration, as alterations may indicate a fraudulent transaction. 2. Check for any traffic violations: Before transferring a personal used car, check if the vehicle has any outstanding traffic violations and whether it is within the validity period of the compulsory traffic insurance. The vehicle must have no outstanding violations and valid insurance to proceed with the transfer. Generally, vehicles with violations cannot be transferred until the violations are resolved. 3. Verify the presence of vehicle purchase tax payment receipts: Always inspect the original tax receipt when transferring a personal used car. Some vehicles may not have paid the purchase tax, and after the transfer, these vehicles may be required to pay the outstanding tax, which can be a significant expense. Therefore, it is crucial to determine who will cover this cost.
