FJ43/45/47 Info wanted - thinking of importing

Location

United States

Hope I am not breaking the rules here.

I know where to find a bunch and I mean a bunch of FJ43s. Also the occasional FJ45 pickup and Troopie. I looked over some threads to see what value may be these days but it is all over the place.

FYI, these would be imported trucks, obviously. They would come from Latin America. I know how to find tons of them and have a guy on the ground to check them out. My guy is good with a very long history with Japanese 4wds, he and I have been close friends for 10yrs. We could even have engine compression's checked, drag magnets to check for bondo, ect ect. For the most part these would be un-restored trucks. The occasional vehicle may be ex-public works and similar, owned by a church, ect. I know where one 81 Troopie is right now that is ex-fire brigade.

First up, I can't get these trucks for dirt cheap. Less than USA values but not dirt cheap. Dirt cheap to me is $5,000 or less. I then have importation expenses which run $4-5k. I am not looking to get rich and I am not looking to make a pile of cash, I have a regular job. But yes I would want to make some money. The potential also exists to find Delta Mini-Cruisers which are very rare. I am a pretty good mechanic and am currently doing a frame off resto for a guy on a 1964 Nissan Patrol. So I could easily fix the trucks up a bit, install lift kits, whatever. I even have a real good body guy at my disposal so could do quality paint too. These trucks would come from the 3rd world and I am not looking at having any work done there. I would do the work myself if any was needed and it would be quality, including real nice paint. It is also possible for me to travel south and personally view and inspect the trucks.

I have thought about this on and off for over 10yrs when I first made the contacts outside the USA and traveled to the country I am looking at trucks in.

Any ways, is it worth my time? What is the current value of un-restored but solid FJ43's, 45's and 47's?

Does $15-20k for solid 43's sound fair? Around the same for the 45/47's too. The occasional really nice FJ40 comes up once in awhile also. The reason I ask if $15-20k is fair is because I know what I can buy the trucks for, what it costs me to import, what I might have to do to them, like new tires, ect. So I know what I would be in the trucks. I realize a lot of guys have brought in trucks from Costa Rica, other Central American countries and the Middle East. I realize I am not breaking any new ground here or offering some kind of special time capsule trucks. Just plain old solid Cruisers for a fair price is all I am thinking about. I don't care if so and so sold such and such truck for $50k+ which means I could do the same. That is not what I am thinking about doing. Rather, buy for xxxx amount, spend the $4-5k on importation and registration and then sell for a small profit, a profit that is fair to me and the buyer. Again I don't care if the trucks are worth $50grand, I am not looking to sell trucks at that kind of mark up, period. And in my opinion they are only worth that kind of cash if they have been restored correctly and it is fully documented

Comments, thoughts and opinions welcome.

Cheers

 

[CHAS404]

Well I am 8 months into doing exactly this full time. There are many barriers as Colombia is a Spanish speaking developing country. Country is making great strides and has a better economy than the USA right now but it is still a third world country and difficult to operate in.

Any comparison to exporting from Australia to exporting from Colombia goes right out the door because Australia is an English speaking first world country without a history of business corruption and theft.

Other barriers I have encountered is that due to the sad history of cocaine trafficking which has thankfully been improved here Colombia still suffers from very strong anti-money laundering banking laws. This makes opening a bank here very very difficult and also wiring money from the US to Colombia difficult. Also obviously the anti-drug trafficking laws make exporting containers of products difficult.

I am on my sixth week down here and now have a registered Colombian company with the rights to export from this country (remember I started with this idea 8 months ago). It was a very trying situation for me. Any normal paper that you could get from the USA govt in 5 minutes online took me a week here and I had to personally show up over 3 times with accountant and lawyer in tow.

I have the advantage of practically living in Colombia for over 5 years and this Volcan 4x4 is my second company. I also studied Spanish at the University level and speak and read very fluently. Despite these advantages this has been the most challenging business I have ever attempted ( I built subdivisions before).

That said I posted on this forum 8 months ago that Colombia is the source for high quality trucks or possibly restoring them in Colombia and I was essentially laughed at. The proof is in the pudding with sales and bids of Colombian restored trucks at recent Mecum Orlando auction at $40k, $40k and $62k. I predict that the majority of classic FJ inventory will be coming from Colombia. It is already happening. I hope that Volcan 4x4 will be providing more and more of that inventory.

Like any other business TIME is important. I have spent 6 weeks readying 2 trucks. Time is not respected in Colombia but it is the USA. I do not think there is any profit in a $15k to $20k truck. The reason I am doing $40,000 trucks for now. I am also trying to build a brand Volcan 4x4 and to show that I can bring high quality trucks to the US market.

I have had a lot of interest from forum members asking for discounted or inexpensive trucks. I hate to turn people down and hope that as I improve the exporting/shipping process I can send more as is trucks at lower price levels. The only way to do this is of course with volume.

Like was posted above a $5000 truck in Colombia is a $5000 truck in the USA. Makes no sense paying say $4000 to export a $5000 truck. Reason no one has done so.

Just because you see a price on the internet does not mean that you can properly purchase that truck in Colombia and go through all steps and have it registered in your name back home. There is no great secret to this process. By the time you add up the costs of hotel, transportation, translator, etc you are better off paying me a profit. Not to mention the risk of a Colombian seller stealing from you or your uninsured truck getting wrecked or stolen before it is exported.

After working in this I have discovered there is a misconception. I am not "shipping" trucks. Yes the shipping on the boat costs $1900 (The truck has to be shipped to the coast for $500 to a $1000 plus once in the US the container has to be moved out of the port too and the truck unloaded close to another $1000).

I am not "shipping" trucks rather I am ...

1. searching and finding the right truck amongst dishonest or disinterested sellers. travel costs are high here and traffic is terrible. I pay a driver and some days spend $75 and that is just within the city. i look at ten trucks to find the "volcan 4x4" candidate. i have a mechanic and body man to review for me too. Right truck also means proper frame numbers and registration numbers as was mentioned. Colombian sellers and dealers have no concept of this issue.
2. buy the truck. you need a bank account and a cashiers check. cashiers check takes 2 hours not 20 mins. I just tried to open my third bank account at a bank i have 2 accounts with already. I spent 3 trips to do this and they denied me for a missing paper.
3. transfer the truck to my name. This takes about week. This is not DMV it is a totally different process. My Nissan dealer took 30 days to get the truck into my name. without that paper I can't export the truck.
4. register yourself with the Colombian IRS and drug task force (my company is now registered). you cant export in your personal name without doing this. there is no way that i know of other than go to the govt offices and present yourself. all interviews in Spanish. I did this for my first green FJ40 and it took me 2 to 3 weeks plus i was forced to fly to Cartagena and stay in a hotel there.
5. move the truck within the city and park it in the paid parking lot. You better hope that you dont wreck it or the parking is secured bec if it gets wrecked or stolen there is NO INSURANCE for these trucks so now you are out your investment (reason I won't for now I wont export other people's trucks).
6. in my case move it around the city to get it fixed up. takes time especially here. I have all my specialists lined up now. it still took me a month to fix up 2 trucks that were in pretty good condition working 6 days a week.
7. Unless you are in Cartagena (where most coastal trucks are rusted) you have to ship the truck from Bogota or Medellin. That can cost a $1000 depending. The mountain cities are 15 hour drive from the coast or 2 days on the back of a truck (again no insurance if the truck gets wrecked). You need someone to receive the truck at the coast or in my first case I flew down there myself and stayed in a hotel. Also if the coastal govt decides you need a paper you will have to fly there.
8. work with your shipping agent to get all the export papers in order. I am now doing this for my Nissan and the FJ43 I have for sale here. All conversation and emails in spoken/written spanish. Expect to be told you need ANOTHER paper. Tomorrow I have to take both perfectly finished trucks into the city traffic (no insurance) to get a revision for an unexpected paper I need.
8. From cartagena the truck goes to miami and the miami agent. miami all business STILL conducted in Spanish. My first truck was held up in the port for over a week due to homeland security inspections. Here you pass through the EPA and DOT waivers. The cost to drop the trucks from the containers and move out of the port is $700 to a $1000 so right away that $1900 is $3000 (plus the trip from Med/Bog another $500 or so). All depends on your port. There are inspection fees $300 and other fees plus the 2.5%. I estimate my costs at $4000 per truck plus all my time overseeing it. I hope to bring this down by sending two trucks per container.
9. Once the truck is released from the port you have to register it in your state. Every state is different which is the reason why I am paying to register my trucks in FL before selling them to a client (another $1000 or so). When I took my green FJ40 to the police/DMV in FL they said where is the VIN we cant register this truck! I had convince him that Colombia uses the frame number and showed all my colombian documents (which FL did not like either). I FINALLY got this paper/ VIN check etc.
10. With police VIN verification you go to your county and do the normal registration ($1000).

So when people ask me to 'ship' them a truck they saw on the internet this is what goes through my mind! It has been a very trying process but I believe I am getting my system in order and hope to do volume soon. This is a full time endeavor and it has been challenging but very rewarding.

I see this no differently than any other business. You have to do it full time and you have to be here in Colombia. With volume I can bring down the purchase, upgrade and exporting costs to where a single buyer/exporter's cost will be too high/inefficient.

I would not be doing this if I did not love spending time in Colombia and speaking Spanish. It has been a very exhausting 6 weeks and I am anxious to get back to Florida but I am very proud to have purchased and finished these two "Volcan" trucks and can't wait to get them to Florida.

Here is my current inventory...

 

[AUStoUSA]

Oh my goodness that is insane. I have a headache just reading it. Good luck on the venture, it sounds like you have a good head on your shoulders and have a plan worked out. Your inventory look fantastic!

Cheers

 

[REDrum]

I hope you realize that having 404 in your screen name is disconcerting...

 

[CHAS404]

haha on 404. thanks guys. 404 might be a good reference to my 'high speed' internet down here.

here I am disclosing a very important part of the export process... I needed to get the police to check the frame numbers etc ( i check them myself before buying but the police guy commented anyhow they they like to cut off of the right front portion and weld in a new section with the frame number. i would think easily spotted though.). I dont think I NEED this police review it is yet another hassle in the export chain and costs a few hundred dollars but also 3 days or so. I got it done in 2 days but still. Notice all the stamps and seals. I tease Colombians and tell them they LOVE stamps and seals and fingerprints bec of the Spanish original govt. I know bec i lived in Spain!

This is what I mean by Australia (English system of laws somewhat like USA) vs a Spanish (or French) colony system of laws.



This cost me 2 days and forced me to move my 2 perfect trucks across the city in heavy traffic. Plus a few hundred dollars. There are many instances of this.

 

[CHAS404]

I don't take this too negatively it is a cost of doing business in Colombia and well rewarded in the sense that the market (myself included) prefers left hand drive trucks over RHD trucks in general.

I see how I can improve my methods despite the barriers. I learn by making mistakes!

 

[CHAS404]

Note the date. Still have not shipped these two trucks. Every day I sign another piece of paper.

 

[CHAS404]

http://www.eltiempo.com/Multimedia/...narios-falsos-instalados-en-bogota_12451564-5

Thinking of buying cars off the internet in Bogota don't buy one from these 10 people. They defrauded over 200 people. The car transfer process takes so long the culture here is to give a money deposit before the seller transfers the paperwork. The paperwork takes 3 to 10 days. I am buying a beige 1982 FJ40 from my first non dealer direct seller. I just handed him a big check with nothing in my name (check took over 1 hour to get at the bank). I am mitigating that by using a lawyer drafted contract (in Spanish ofcourse) plus I have a young guy that checks the system to see if indeed the truck is in the guy's name. I am holding back some money from the seller to make sure he completes the paperwork to my name. I have the truck already but without having it in my name it is worthless to me for exporting. I am working with my lawyer to perfect my contract so that I can buy direct from sellers not dealers. I am probably two weeks in order to buy this 1982 FJ40 beige. Just to give you a reference how different it is here.

 

[CHAS404]

Also the article said they set up dealerships to consign your car (customary here). But the bad ones just lease a nice office and lot and then consign a bunch of cars. After a few weeks they close the office and ship the cars somehow over the border to venezuela. The owners come back to check on their car to find an empty lot.