Now companies that are engaged in used car trade, are forced to re-register cars at the service centers of the Ministry of Internal Affairs twice: first for themselves, and then for the end buyer. The Verkhovna Rada has passed a bill that will allow car dealers to buy cars for further sale without the need to register them for themselves.
The new bill and its purpose
On April 23, the Verkhovna Rada approved draft law No. 9083, initiated by MPs Danylo Hetmantsev, Yaroslav Zheleznyak, and Maryana Bezugla. The document provides for the deregulation and de-shadowing of the used car market. Its goal is to simplify the trading procedure, reduce the administrative burden on business, and increase budget revenues from legal sales.
The essence of the problem
According to current regulations, companies must register cars purchased for resale in their name. This complicates the activities of car dealers, because:
- it is necessary to obtain certificates from military registration centers twice;
- a lot of time is wasted due to queues and manual record keeping;
- Administration costs are increasing.
Because of this, some transactions take place "in the shadows", which leads to a loss of revenue for the state budget.
What will the new law change?
It is proposed to amend the laws "On Road Traffic" and "On Mobilization Training and Mobilization", which provide for:
- Exemption of companies selling used cars from the mandatory re-registration of purchased vehicles.
- Granting the right to sell cars to the end consumer without prior registration as an intermediary.
- Cancellation of the requirement to obtain military transport certificates for such cars.
Benefits for the market
According to Getmantsev, before the war, the volume of the used car market was 1.7 million units per year, but only 2.51 million of them were sold officially. Legalizing sales will help:
- increase the volume of the legal market;
- simplify the activities of auto traders;
- reduce shadow schemes;
- to provide additional revenue to the budget.
Experience of other countries
In the USA, Germany and Poland, car dealers have the right buy used cars for further sale without registering for yourself. Registration is carried out only for the end buyer, which greatly simplifies the process.
Conclusion
The draft law is designed to eliminate bureaucratic obstacles that hinder the development of the used car market and create conditions for transparent activities of car dealers. The implementation of these changes will contribute to the effective functioning of the
