Some resourceful dealers looking to make money in a tough economy are selling used cars to buyers in foreign countries.
“We've seen a lot of interest in exporting cars,” says Dean Eisner, president and CEO of Manheim, a provider of used-car services, including various auction enterprises.
Most of the vehicles that are bought at auction and exported go to Eastern bloc countries and the Mideast, he says. Some head to South America.
“Two years ago, about 10% of the cars sold at auction went overseas,” Eisner says. “That's undoubtedly increased. Franchised dealers are looking to expand. We're helping expedite that. For some of them, it's already a big business.”
He says the used-car deliveries tend to go to undeveloped markets, and consequently don't affect new-car sales in emerging markets.