My friend Manuel Antelo, creator of Argentina’s Car One but who lives in Spain, was toying with the idea of releasing a Car One for the Spanish set. Unlike in the United States, in Spain there’s no such thing as a used-car hypermarket with thousands of cars in stock, therefore making this an opportunity with major potential. Used cars in Spain are sold out of small dealerships with extremely high buyer-seller price differentials.
After giving the topic some thought, I wonder if perhaps the opportunity for profit is not only in creating a hypermarket of used cars, but rather in bringing those same European cars back to be marketed in Europe. Researching some prices on the Internet, that is precisely what I found. Clearly no two used cars are identical, and my examples may exaggerate the differences slightly, but I’ve tried to be as fair as possible by checking out both American and Spanish sites for the same cars, then comparing.
So why are European cars so much cheaper in America? The simple answer is because European the American car market is the most competitive market in the world. The dollar is very weak and European car makers are probably not making much money in the States now. Still this does seem to be an enormous arbitrage opportunity.
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