Ukraine has simplified the process for trading used cars.

Ukrainian President Volodymyr Zelensky has signed a law aimed at improving the procedures for wholesale and retail trade in vehicles by businesses registered with the Main Service Center of the Ministry of Internal Affairs.

This is reported on the Rada's website.

The new law stipulates that businesses engaged in the wholesale and retail trade of vehicles will be able to purchase and sell vehicles without registering them at the service centers of the Ministry of Internal Affairs and the Military Registration and Enlistment Office.

According to the head of the tax committee, Danilo Getmantsev, “the abolition of the senseless state registration of used cars... will serve as a guarantee for bringing the market out of the shadows, expanding the operations of legitimate car traders, and eliminating schemes through which the budget loses tax revenue.”

Reminder: since the beginning of the full-scale invasion, the automotive market has become the second source of funding for the state budget – only the business related to the trade of petroleum products ranks higher. This is mentioned in the explanatory note. In 2021, the volume of state registrations of new cars was approximately 100,000 compared to 1.7 million used cars – nearly 20 times more.

At the same time, to resell a used car, a car dealer must re-register it twice: first in their name, and then in the name of the final consumer. Additionally, for each vehicle, the seller must obtain a certificate from the Military Registration and Enlistment Office twice – for registering the vehicle and for de-registering it upon sale to the final buyer.

It is noted that the Military Registration and Enlistment Offices issue such certificates only twice a week, and records are kept "manually" in paper journals. Obtaining one certificate can take several working days, which is why the vast majority of the used car market is currently "in the shadows."

Background. Earlier, Mind explained how the new law on OSAGO protects the interests of car owners and what innovations will ensure fairer compensation for the services of auto repair shops.