Makers use some unorthodox ways to make profit in Europe image

A well-known method to make some extra cash in the auto industry is to de-register cars from one “affordable” market and sell them elsewhere in Europe.

2015 was a strong year in terms of auto sales around Europe, with record figures reported in countries such as the UK. However, it is very likely that what you see in many deliveries charts is not actually the naked truth. Autoexpress magazine has recently pointed out a common method throughout the auto industry, used by the automakers to boost their profit and to report higher figures than they actually sell. A study made by the magazine shows that in Brittan up to 15 percent of new car registrations could be pre-registered, leaving thousands of unsold vehicles sitting on forecourts and skewing industry sales numbers. And this practice is not a common one only in UK, but for the rest of Europe as well. Pre-registering is the way through which a dealership buys new cars from the manufacturer and registers them on its own account, making themselves first owners. Afterwards, the vehicle can be de-registered and sold elsewhere in Europe.

In the region, there are significant price differences between markets, and cars have a much lower price tag in the Eastern parts of Europe than the ones found in North or West of the continent. Therefore, it could a very lucrative business to export pre-registered cars to another country to sell them for new to make further profit. This is not the only way used by the automakers to hit target levels, as selling to short-term rental companies is another method to increase figures.

Via Autoexpress