Today, the Verkhovna Rada of Ukraine adopted in the first reading draft law No. 9083 , the explanatory note of which contains information from the Institute of Car Market Research. The document proposes to simplify the trade in used cars, making it simpler and enabling the car business to work transparently.
As the experts of the Institute of Car Market Research together with the analysts of YouControl.Market and Automoto.ua proved in a large study, the segment of internal resale of used cars in Ukraine is in the shadows. According to the estimates of the experts of the Institute of Car Market Research, the real share of deals carried out by the auto business can be up to 40%-50% of the total number. According to official statistics, in 2022 only 2.6% of cars were bought by legal entities, but in practice we see many sales platforms on the streets and their number is growing.
One of the reasons is complicated bureaucratic procedures, experts explain. Today, the law requires companies-dealers of used cars to register "on their own", that is, to visit the service center of the Ministry of Internal Affairs and obtain license plates. And also — registration at the TCC and obtaining the relevant paper certificates: about the registration of the car and about its removal — after the sale.
Due to the archaic nature and complexity of such norms, they are almost never followed in practice. Commission sites, when buying a car, do not conclude an official contract of sale, but take a notarial power of attorney from the former owner. They re-register the car later, when they find a buyer for it.
As a result, these operations are not recorded anywhere, are not reflected in the companyʼs accounting and, accordingly, no taxes are paid on them, explains Stanislav Buchatskyi, head of the Institute for Car Market Research. " In case of any problems with the car, legally, the buyer has nothing to do with such a "car commission" — because the owner remains the one indicated in the registration certificate, " says the expert.
What does the change in the law solve?
The changes will allow companies that have the appropriate activity code (trade in vehicles) and are registered in the Main Service Center of the Ministry of Internal Affairs not to register cars for themselves if they are purchased for further resale.
And they also relieve the unnecessary burden on TCC and SP, which is especially relevant in the conditions of martial law. Instead, the exchange of data about vehicles can be organized in electronic form.
The changes can create favorable conditions for the "legalization" of trade in used cars, the development of legal platforms for the sale of used cars, and give advantages to those who want to engage in this business in a civilized manner, say experts from the Institute of Car Market Research.
What will it look like in practice?
If the changes are approved, it will become easier for car commission sites, experts of the Institute of Car Market Research explain. A quick sale of a used car or an exchange for a newer one (trade-in service) can be one step closer to how it happens in the EU countries:
1. The owner brings the old car to the commission site;
2. The car is inspected, evaluated and a sales contract is concluded;
3. The seller receives money for the car, or pays the difference if he chooses something else;
4. From this moment on, the "auto commission" will be considered the legal owner of the car. Although the number plates and registration certificate remain old, there will be no claims against the previous owner;
5. When there is a buyer for the car, the "auto commission" draws up a new contract of sale, on its own behalf, and already on the basis of this, the Service Center of the Ministry of Internal Affairs will issue new license plates and a registration certificate.
When will the law come into force?
Currently, the law has been adopted only in the first reading. After that, it will go to the specialized committees of the Verkhovna Rada for finalization, where it can undergo changes, explains the head of the Institute of Author Research, Stanislav Buchatskyi: "it has happened many times that the draft law, adopted as a whole, is radically different from what was adopted." Therefore, it is difficult to say what the final version of the document will be, the expert explains.
In order for the changes to enter into force, a positive opinion of the specialized committee, a majority vote in the hall of the Verkhovna Rada, the Presidentʼs signature and publication in the press are also required.
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