Automobile

The Overlapping Activities of Car Manufacturers and Dealers

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The business of auto trading looks a simple one but involves great complexities. It you are desirous to know the nuts and bolts of operating an auto trader business, you need to just take a look at the law and legislations surrounding such form of businesses. The taxability of the business is also technical and the revenue board focus it the most because it surely the most revenue generating source for the government.

In a developed city and also in the developing one, the number of new vehicles that reaches to the customer on a daily basis is over five hundred and closes to thousand. This includes those that are newly manufactured as well as those that are imported from some other country. The reason for including both new and imported vehicles is due to the implication of duties. Both sorts of cars attract good duties while they are registered for the first time. Again, the revenue to government in the form of duties also accumulated to great wealth.

Mitsubishi trader is one of the oldest, most recognized and innovatory auto trader that is famous all over the world for the type of vehicles they offer to the general public. For an auto trader UAE offers many facilities for the conduct of their business. This helps the businesses to develop and in turn generate good revenue. Although it is said that ultimately the government is the one benefit the most from the expansion of a business of an auto trader, the fact that the common man is deriving different benefits is usually ignored. The government provides good infrastructure, attract foreigners to boost local business and provide other governance facilities and in turn take taxes. The companies employ hundreds of workers and employees who are paid and the companies become a source of providing jobs and vacancies. The auto trading companies operate on a large structure and thereby have heavy mechanical machines and equipments. They also buy material to be used in the production which again runs a cycle of economic benefits to the society at large, including governments.

Dubai car dealerships business is booming. As there are practicable difficulties in order to perform dealership services along with the manufacturing work, the dealers act as middleman between manufacturer and the final customer. This way the manufacturing business concentrates on its activities and people also do not need to contact these manufacturers. The taxation is also applied differently on manufacturer of a vehicle and the car dealer. The dealers purchase the cars from the manufacturer and the customer then purchase it from the dealer. As the manufacturer incurs huge costs in running the business so the need to get the cash from the sale of a vehicle is also important. The management of vehicle manufacturer business requires the good and efficient management of working capital. This ensure proper running of the business and the manufacturer requires managing their creditors as well as debtors. The dealers have some car models at their location and if one needs some specific colour or make then get it arranged from the manufacturer in a short time period.

Author Bio
George Thomas is a mechanical engineer who have years of experience in Auto Trader UAE. He is giving advice for Dubai car dealerships and other Automobile companies specially Mitsubishi trader | Nissan. He is also testing and checking variety of Mitsubishi Automobiles.

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