kaushama

I know most of the Recon Civics have been imported from Singapore before. Is it possible to import a Civic from there? Any export auction sites? Any personal experiences?

Yeah it is going to go up and up no matter what. We people are helpless. I did not say Japs have manipulated the prices. Our traders did it. And Japs get a bit of it too unknowingly. Hence currency drain. So PBJ and government is trying to offset that unnecessary currency drain. Recent price hike happened well after the yen rate has gone up. There was sudden rush in the market because of a scare of a tax hike. I am sure ordinary people like us; who are not economists, have not invented the story. Besides the so called budget they fear is so many months away. PBJ and the lot knows what is going on. That is why they target Sri lankan VAHANA MAFIA ( These are not my words! State media) for the turbulence in the market. The effect had to be neutralized by government. Rupavahini news item speaks volumes about that. Otherwise there is no need of a statement and a news item like that. There may be variables you talked about too. But if you see ads here Axio X type is being advertised now for 4.4 mil!!! They were 3.5 or 3.6. Mil Numbers certainly do not add. I wonder who created this rush within two weeks after Japanese holidays. No point arguing here. I honestly know how people manipulate these things. I have personally witnessed those. No matter what any benefit meant for common people reaches them after politicos and middleman consumed their portion in a big way. And I am talking about one of those variables which we hate! No matter what that variable will play the biggest part in the market. I am sure we all can include that variable to western economy theories with national pride. In short after yen value increase and Japanese holidays, our people created an unnecessary rush. Hence increase in price. It is true Japanese prices had gone high too. But disproportionately. What do they gain? They raised the price to a new level. Benefit? In couple of weeks Japanese market will settle down again. Do you ever think our dealers reduce the price accordingly??? Impossible! Prices will stay high, even Jap market settles again. Budget is so far away and people will rush to buy cars before tax increase. How many people follow the Japanese auction prices? They just buy from these gentlemen who provides us a great service. I am happy government is trying to offset it this way.

+1

And that particular Rupavahini news item is quite goood negative propagande against, what they call " Vahana mafia" !!!! Just watch it guys!

It is predictable! Prices are going to go up and up! Latest news that I have heard goes like this. Since there is a recent upsurge of the market created by our traders in Japanese market, speculating a possible tax increase, currency reserves go out of country unnecessarily. For example a 3.9 Axio we spend 4.5-4.5 mil now. A portion of this going out to Japan for nothing. Government probably won't lift the tax reduction. But artificial market trend drain reserves without a reason. So this infamous official made this comment to offset these trends it seems. There probably won't be a tax reduction but it will remain same. Probably they will bring down another 3% or something. So he said " what nonsense we are not raising it again. we probably reduce it literally" That make sense! Negative propaganda for panic creators. This was my exact point. Why do people make a sudden rush and panic in the market, unless they want to make quick bucks. By doing so they do serious damage in the foreign market and to Sri LANKAN economy too.

Oh we should check the price of an Axela now too. I am sure it would have gone up propotionately to Axio here. I am pretty sure of it. In fact I just hear they are now quoting 4 mil for one.

I just held my breath without telling this. But Huge market like Japan, is exclusively importing cars to Sri Lanka. So a simple tax increase here causes a whirlwind there. We are becoming a force in Asian economy!!!! Well done Chinthaka! Check yourselves, http://www.tradecarview.com/used_car/japan...p;pn=1&so=1 I have been checking it since this TAx reduction came through. I do not see a increase in prices propotionate to price increases here. My simple logic always gives me headaches!

Thank you mate for your expert explanation. I am not an economist. I thought at least tax structure is going to be stable for another year or so by all the indications Gov is putting around. So in my simple knowledge about economy, shear volume of imports from Japan, prices should at least stabilize or should go down (In my dreams). But I can see a huge buzz in the local and Japanese market for imminent Tax hike in a very short time. Probably they all are not economists too. What they quote for their price increase; both here and in Japan, the news spreading that the tax is going to be increased soon. There may not be a conspiracy but if you have checked the vehicle prices two weeks ago the prices had been, I am taking this from another forum member's post in another thread. Those were the prices around as I checked three Weeks back. There was a holiday in Japan so there was no auctions for about one week. After the commencement of business this rumor of a taxes hike, is going around like a storm. Now (after two weeks) Axio G white is 4.4 mil, Grey or maroon is 4.9 to 5 mil. All the traders including ones in Japan say that this is due to possible tax increase. When they were asked a price break down, what they say is not the inflation due to Yen thingy, they say prices in japan is very much higher due to this tax story. My simple layman mind (With regards to economy) questions me all the time, why people are so keen on a news of a tax increase, when the news (whether they are bogus or not) is for a possible tax reduction or at least stability. To me numbers do not add up. Perhaps for the Sri Lankan market economical laws from the twilight zone applies. I do not have any problem with you guys, who are beating me up , unless you defend automobile dealers. I am not pro-government either. I hate the politics here whether it goes to generals or chinthakas. I know all about them more than most do. I know that a simple statement by a infamous Gov official will not bring down the prices down here. But if prices go up within one week, due to a rumor saying about a tax hike, I would expect at least stability in the local market due to the facts around. But this is the Mystic world with black magic. If someone see the volumes of vehicles imported around, simple economical theories should bring down the prices of vehicles both unregistered or used. That is no where to be seen. Instead we have price hikes. We all learn what ever the theories from western world and apply them here. For example the scientific knowledge I gained from there, could not be applied here, as it is, because of local perceptions and beliefs sometimes. There is more to it. My problem is I can not find a good FD1 in Japan, both persons I know there, is playing a cat and mouse game with me now. God knows why? I can not reason it out with my very simple logic.

State's way of handling things could be well understood if you recall the way they unanimously approved tax free vehicles for themselves in the first Parliament session. I think that had been the only bill passed unanimously without any opposing in the Parliament in recent years. I do not know the exact reasoning behind the tax reduction. It may not well be for the benefit of the common man. Perhaps some hidden agenda, just to buy time with IMF. We expect this behavior from them. Damn them. But even when there is a tax reduction it is very difficult to enjoy the full benefit. Prices will somehow go up and people will find a way to increase prices. Otherwise there is not reason for dealers to increase the price within 2 or 3 weeks by few lakhs. All the logical reasoning is due for a price reduction or stabilty. Yet prices go up. Don't tell that this is due to yen rate. This is due to increase in prices of vehicles in Japan!!!???? Japanese people taking advantage of tax reduction and taking another calculated gain with the information by the secret service that taxes will be reinstated again to previous values. Suddenly Axio Gs are sold for 5 million! Allions for 6 mil! So hurry up! This is how our market behaves! And I wish good luck for those, who are waiting for a crash in the secondhand car market.

I quite agree on this. There is no hope in this car market even there is going to be another huge tax reduction. Middleman will find some way to rob your money. So buy soon unless you can find a car yourself in a rural japanese auction place. Otherwise you may get assaulted in Tokyo by your own country men.

Well He may not do it. But the point I wanted to make is different. I do not want to praise him or have high hopes on their sayings. But when the "official" view is at least, there is going to be another reduction, how can car sale guys say that prices are going to be high soon due to forthcoming tax increase? If market follows trends like in stock market, car prices should come down by at least 1 or 2k with these news. They are no better than these politicos perhaps even worse. When there is a definite tax reduction of the car imports still there is no reduction. Why? Sri Lankan Government? Japanese government? If they are going to remove tax reduction in next budget few months ahead, why do dealers increase the price now itself? Is it Japanese making money because they spy on Sri lankan govenment on the tax policy??? To me politicos are corrupt. But these manipulators are in the same class or above.

They all belong to same class mate! But at least last time, he implemented what he preached. Apparently he is the mastermind behind this tax reduction.

Exactly the point! When taxes were cut, how come the import prices going up? It is not the government, then. So called Sri lankan automobile market forces!!!!! All of a sudden the prices have gone up by good 3-4 lakhs! Reasons?? They say government is going to lift the tax reduction. But Dr. P B Jayasundara says they are going to reduce the taxes, replying to the queries about sudden price hike. People who buys vehicles in Japan say, Japanese auction prices have gone sky high after their holidays. Because Japanese knew that the taxes are going to be raised soon???? There have never been logic in Sri Lanka automobile market, except for logic to raise the prices!!!

When a topmost official of the national treasury tells something about a future policy, it does not become a prediction or a speculation any more. He revealed the plans for policy change many months before the tax reduction in many forums. The fact was posted by few people here. People who didn't want to believe it never believed it. News about next tax reduction too was published in Lankadeepa today. Again a top official of treasury! So these are not predictions just facts. Again people who does not want to believe it, will not believe it.

And if this is true recent shout in the market that taxes going to be raised again, and hence the price hike; had been nothing but another market manipulation, by people who run the business. When it was first posted in the forum few months ago that taxes going to reduced, people laughed at us. But it was writen here with good evidence provided by top officials. Despite all these market manipulation goes on. What I can not understand is, our people in Japan doing some severe damage by raising the prices there. That money definetely is going out of country. If people can get together and manipulate market, they should do better by giving the benifit to country and people so that they get more turn over in their business. But these people only have unidirectional thinking.

Just heard that car taxes will come down further and Gov is calculating how to do it. This was told by Dr. Jayasundara it seems. And, http://www.lankabusinessonline.com/fullsto...?nid=1470785646

One person has brought down two FD1s for 4.3 and 4.4 mil range. Auction grade 4.5 or 5. Both has done less than 15000+ KM. I love FD1 for its looks and drive. Only thing is the FC which is not great, but it is 1.8L. 10 KM/l city and 12-14KM/l outstation. How is AXELA's FC? Should be less than AXIOs?

Soon I can import a car from Japan. I wanted to get a CIVIC FD1 1.8. All the contacts I have in Japan except one does not like the idea of getting down one. Cost would be around 4.4 mil. Few people said that there is no Civics manufactured in Japan now. All the JDMs there are Singapore imports!!! I wonder this could be true. If not for Civic, choice would be between Allion 1.5 (4.5-4.7 mil) or Axio G (3.6-4.2). There are way too many Allions on the road for the money you pay. Axio is a very economical car and perhaps for the money you pay one has to accept their commonness.

My Sylvi, Interesting! Could you please name few trustworthy internationally certified Automobile appraisers?

Say even if we hire a person to go to Japan, the price manipulation stops at his point when he choose the car and tell us the FOB. Perhaps he could liaise with the auction trader helping us the deal with the trader directly.

OK I am in too. I want to buy either a AXIO or CIVIC. Is this the same dealer you previously told me about? But the way car trade dealers act, I doubt whether they will reduce their cut significantly. But my solution is not that impractical too. I have a person who is going to Japan soon. He is going there on 20th. I have some of my personal friends in that group outside the forum. I do not want people here to get involved in it as it will be misinterpreted as my own business. So please do not ask to get involved in that group. I just wanted to introduce the concept here and perhaps help to coordinate and lay down guidelines. I am very much eager to defeat these intermediates, who suck our money. The simple logic is this. Now if the person in Japan tells us the FOB there with specifications of the vehicle, when we import and open an LC we know that there wont be any other overheads and additions to the price by third parties. For example person who goes to Japan agreed that he would keep maximum 100000 to 150000 per vehicle for his services. He is a well known person to us. If you all see the prices this online auction site the price of a G grade AXIO (condition 4.5) varies from 10000US$ to 13000US$. Probably we still can buy a car online but there is a drawback that we would not see that car. In addition there is a risk of doing online transaction and communication. So person who goes to Japan can act as the intermediate liaising the trade. I am sure if we have people who can help the person, who goes to Japan there will be cars for much lower prices than those in online auction sites. I have another suggestion. Shall we all get together and do this? I reallydo not know exactly how to calculate the total cost of the vehicle. Shall we all get together and calculate rough estimate of the price of an import of popular models? We can calculate the average FOB of a car if we go through online auctions. We could get a quote of the depreciated CIF from agents. Then we all will know h ow much we can gain by direct importation.

Psychological warfare has become very potent weapon to keep common trends going!!!!!

Mr Sylvi, May I respectfully ask sir, as I am who suggested this first in the forum, do you imply to say that I belong to a kind of members, who try to go to japan as an illegal immigrant? It is nice to know that you can get a VISA easily and have such helping mind to alert us. And guide us to get things done correctly. Unless you are an affected car importer, if we do this group buying, perhaps you would volunteer to go to Japan for us. We would provide you first class comforts and share the cost. I am sure you would return back with very good cars for us. Kaushama

Getting a VISA to Japan, for that matter to countries like UK or USA, Is not difficult if you can show that you are a respectable citizen here, with assets and life here, which you would not give up to pump petrol as an illegal citizen in these countries. Perhaps the best way of arranging this forward is to post and form a group here first. For example I will be the first in the group kaushama: Vehicle: AXIO or CIVIC 2007/2008 When there are sufficient numbers perhaps we could discuss and meet up to discuss how to proceed. Some people may have some contacts in japan, whom can help us. This kind of group buying systems are very much common and popular in international forums. We could perhaps lay down guidelines and find a trustworthy person whom can be sent to Japan. I see this as the best way of defeating the unreasonable local car vendors. When it comes a common practice getting VISA would be easier too. Obviously the first group will have a bit of problems and would have to do lots of research. But we could share the experiances with the members, in a sticky here like " Recon group buy thread". With the time it would be easier to do. I have already got couple of friends who like to join such a group outside the forum.

Unfortunately and naturally as expected, I can again see the trends of market manipulation of imported cars. If you have closely followed the price of Toyota AXIO, predictably the most popular option, one can clearly see the collective agreement aomng the leeches. Perhaps they have lots of overheads to cover, when they import an AXIO but not when they do same for Axela!!!! I think the best way is to form a group of people, who wants to buy cars and send someone to Japan to select cars and share the cost of journey among group members. perhaps 5 or 10 people. I think that would have a considerable effect on shipping cost as well.