Is The 2Nd Hand Vehicle Market (Non-Hybrid) On The Verge Of Collapse

[tmnuwan12]

I see there are lot of imports of hybrid vehicles into Sri Lanka these days. Is this a sign of the 2nd hand market being collapsed and people loosing their money?

As a owner of a normal petrol car owner what we need to do, sell it and go for hybrid? Will that fix the problem?

Feel free to share your ideas.

Thanks

[matroska]

  On 11/3/2014 at 5:20 AM, tmnuwan12 said:

I see there are lot of imports of hybrid vehicles into Sri Lanka these days. Is this a sign of the 2nd hand market being collapsed and people loosing their money?

As a owner of a normal petrol car owner what we need to do, sell it and go for hybrid? Will that fix the problem?

Feel free to share your ideas.

Thanks

People will "lose" money if their car is stolen. As long as you have used your car that will not mean you have 'lost' money right?

Even though in SL the perception was that a car is an investement it is no longer so. People have slowly started to realize a car is also something that you use like a a washing machine or a computer.

In my humble opinion buying a hybrid will not FIX the so-called problem. Because even though hybrids are the trend these days I really don't think they will have a second hand market like the AE110's of yesterday.

Since hybrids have a battery that wears out people are a bit hesitant to buy a used hybrid.

also recently it has dawned on the local buyers that car's actually do wear out and due to this mentality shift second hand market will not be that big for hybrids, petrol cars, electric cars or anything.

If it's an investment you are after I recomend you buy a plot of land (not anywhere where there are landslides)

I remember way back people used to consider resale value even when buying a mobile phone. Thank god we are past that.

[Nissan cdj]

  On 11/3/2014 at 5:42 AM, matroska said:

I remember way back people used to consider resale value even when buying a mobile phone. Thank god we are past that.

Haha, Well Said

matroska

[Supra_Natural]

  On 11/3/2014 at 5:20 AM, tmnuwan12 said:

I see there are lot of imports of hybrid vehicles into Sri Lanka these days. Is this a sign of the 2nd hand market being collapsed and people loosing their money?

As a owner of a normal petrol car owner what we need to do, sell it and go for hybrid? Will that fix the problem?

Feel free to share your ideas.

Thanks

Cars are means of transport (and for some us, means of enjoyment as well but this concept is probably alien to you), not investments. If you're worried about your money, sell the car now, put the cash in the bank and take the bus.

[Magnum]

  On 11/3/2014 at 5:42 AM, matroska said:

People will "lose" money if their car is stolen. As long as you have used your car that will not mean you have 'lost' money right?

Even though in SL the perception was that a car is an investement it is no longer so. People have slowly started to realize a car is also something that you use like a a washing machine or a computer.

In my humble opinion buying a hybrid will not FIX the so-called problem. Because even though hybrids are the trend these days I really don't think they will have a second hand market like the AE110's of yesterday.

Since hybrids have a battery that wears out people are a bit hesitant to buy a used hybrid.

also recently it has dawned on the local buyers that car's actually do wear out and due to this mentality shift second hand market will not be that big for hybrids, petrol cars, electric cars or anything.

If it's an investment you are after I recomend you buy a plot of land (not anywhere where there are landslides)

I remember way back people used to consider resale value even when buying a mobile phone. Thank god we are past that.

Ah yes, i recall some people saying "buy an iPhone machan Bette second market than Samsung"

[The Don]

If anything the market is stabilizing, and it will stabilize further as time goes on.

Repairs on Hybrids will also become cheaper. I remember when Automatic transmissions first became popular, replacing a box can cost up to 100K. But now these boxes are frequently repaired. At the moment the technology for this is still flowing to Sri Lanka, so battery replacement costs nearly 0.5 million and nobody knows what to do with the electronics and power train rather than swap parts.

But with so many in the country, the mechanics will soon figure out solutions and specialist outfits will be born.

At the moment Hybrids are only worth investing on if you do significant mileage every month.

[Dinukap4]

  On 11/3/2014 at 5:42 AM, matroska said:

People will "lose" money if their car is stolen. As long as you have used your car that will not mean you have 'lost' money right?

Even though in SL the perception was that a car is an investement it is no longer so. People have slowly started to realize a car is also something that you use like a a washing machine or a computer.

In my humble opinion buying a hybrid will not FIX the so-called problem. Because even though hybrids are the trend these days I really don't think they will have a second hand market like the AE110's of yesterday.

Since hybrids have a battery that wears out people are a bit hesitant to buy a used hybrid.

also recently it has dawned on the local buyers that car's actually do wear out and due to this mentality shift second hand market will not be that big for hybrids, petrol cars, electric cars or anything.

If it's an investment you are after I recomend you buy a plot of land (not anywhere where there are landslides)

I remember way back people used to consider resale value even when buying a mobile phone. Thank god we are past that.

  On 11/3/2014 at 8:10 AM, Magnum said:

Ah yes, i recall some people saying "buy an iPhone machan Bette second market than Samsung"

This doesn't only happen here but even in countries like US,Australia and so on. SOME people buy a reputed brand or a higher market value car so that they won't have a huge loss eventually when they have to sell it to fund a newer car.. it really is not specific to Lankans but to a type of people around the world mainly businessmen tend to do this or a person who has a tight financial situation but wants to have the best of both worlds.

[KingSasanka]

Colombo Stock Exchange is another option to consider.

  On 11/3/2014 at 5:42 AM, matroska said:

If it's an investment you are after I recomend you buy a plot of land (not anywhere where there are landslides)

[Seeker LK]

  On 11/3/2014 at 4:08 PM, KingSasanka said:

Colombo Stock Exchange is another option to consider.

Not with the manipulators around. Couple of years back it was being used by people with power and stocks crashed all time low. Recently last couple of months CSE seems to be doing good again. But god knows for how long.

Edited November 3, 2014 by Seeker LK

[Dinukap4]

  On 11/3/2014 at 4:08 PM, KingSasanka said:

Colombo Stock Exchange is another option to consider.

For the moment, I'd invest on a Land over the stock its very unstable at the moment.

[The Don]

  On 11/3/2014 at 5:00 PM, Dinukap4 said:

For the moment, I'd invest on a Land over the stock its very unstable at the moment.

There are multiple ways to make money from the stock market. For one method volatility is good. To be honest you should not think of stocks as an appreciating asset because its very few companies last 100s of years.

Precious metals, land now they can be considered that in the long term due to their scarcity and being necessary to sustain our life styles. I'd say buy agricultural land and become farmers as a global food shortage is very close.

[tcfern1]

The point is you can buy a brand new car within a reasonable budget if you go for a hybrid.that means that you can use the car without any major issues for say more than 5 years.when the time go by the replacement of hybrid battety will become cheaper.

I have seen in the web that in USA there are hybrid cars manufactured 10 years ago still running with its original battery

So no reason to worry about the hybrid battery because it will last for a longer period than we actually forecast

It may be some 10 years .

So going for a hybrid is a wise decision

[Rumesh88]

  On 11/3/2014 at 8:14 PM, tcfern1 said:

The point is you can buy a brand new car within a reasonable budget if you go for a hybrid.that means that you can use the car without any major issues for say more than 5 years.when the time go by the replacement of hybrid battety will become cheaper.

I have seen in the web that in USA there are hybrid cars manufactured 10 years ago still running with its original battery

So no reason to worry about the hybrid battery because it will last for a longer period than we actually forecast

It may be some 10 years .

So going for a hybrid is a wise decision

I doubt this in SL particularly if you happen to drive daily through traffic in Colombo. I began using a hybrid (0 mileage Axio) as my daily transport since last week and find that it is running on battery most of the time with the charge indicator rarely going above the half-mark whether you are in Eco or Power mode. (Didn't want to try EV mode at all). Except when I traveled outside Colombo (only once so far but I am regularly going out in weekends) the battery remained barely charged. I must observe this pattern for some more time but as I see it for a hybrid battery (Edit: in a Toyota) to be in prime condition you must drive it above 70 kmph (well that's something of a tall order for hybrid drivers. Is n't it? ) for a reasonable period (10 min for example) from time to time.

Edited November 4, 2014 by Rumesh88

[The Don]

  On 11/4/2014 at 3:09 AM, Rumesh88 said:

I doubt this in SL particularly if you happen to drive daily through traffic in Colombo. I began using a hybrid (0 mileage Axio) as my daily transport since last week and find that it is running on battery most of the time with the charge indicator rarely going above the half-mark whether you are in Eco or Power mode. (Didn't want to try EV mode at all). Except when I traveled outside Colombo (only once so far but I am regularly going out in weekends) the battery remained barely charged. I must observe this pattern for some more time but as I see it for a hybrid battery (Edit: in a Toyota) to be in prime condition you must drive it above 70 kmph (well that's something of a tall order for hybrid drivers. Is n't it? ) for a reasonable period (10 min for example) from time to time.

I think plug in Hybrids will solve this to a certain extent, as in maintain the battery.

For the moment I don't hold out a lot of hope of batteries surviving beyond the 5 year mark. Quite frankly a LOT of Civic Hybrids, Insights, Prius's bought during the first now all need batteries. Cars are still running but not delivering the fuel economy they once used to.....

[MoneyMaker]

Yes,The 2nd hand market is on the verge on collapsing. The Yen is at a all time low. New cars coming in to SL are transacted on this rate. This will have a ripple effect on all vehicles registered and unregistered (applicable only to Japanese vehicles in the market)

[KingSasanka]

Select a fundamentally strong stock or two and open you eyes in 5 years,

You would be amazed.

(a few years back my wife bought Nation Trust Bank shares at Rs 18 a piece and today they are touching over Rs 90 a piece).

  On 11/3/2014 at 5:00 PM, Dinukap4 said:

For the moment, I'd invest on a Land over the stock its very unstable at the moment.

Edited November 4, 2014 by KingSasanka

[Clark's son]

  On 11/4/2014 at 11:39 AM, MoneyMaker said:

Yes,The 2nd hand market is on the verge on collapsing. The Yen is at a all time low. New cars coming in to SL are transacted on this rate. This will have a ripple effect on all vehicles registered and unregistered (applicable only to Japanese vehicles in the market)

The money maker seems to have brought down an European vehicle and is trying to make money from it

[TheClutch]

taxes are comparatively low than earlier...leasing rates reduced to 9.5%...huge competition out there for banks and finance companies to give leases..even though the return is almost nothing........a person intends to buy a old vehicle on cash basis...now thinking to go for a new vehicle with a lease ...definitely the used cars will loose market...but what will happen next...i could smell a crisis similar to subprime mortgage crisis

[The Don]

  On 11/4/2014 at 4:25 PM, TheClutch said:

taxes are comparatively low than earlier...leasing rates reduced to 9.5%...huge competition out there for banks and finance companies to give leases..even though the return is almost nothing........a person intends to buy a old vehicle on cash basis...now thinking to go for a new vehicle with a lease ...definitely the used cars will loose market...but what will happen next...i could smell a crisis similar to subprime mortgage crisis

Ha ha ha so dramatic

The user car market has gone through many of these cycles and it will survive. Prices go up and down depending on the price of newer cars. But as long as labour is cheap and cars can be repaired easily, old cars will have a market.

But the constant appreciation of older vehicles will stop once it becomes easier to purchase newer vehicles.

[vishkid]

  On 11/4/2014 at 4:25 PM, TheClutch said:

taxes are comparatively low than earlier...leasing rates reduced to 9.5%...huge competition out there for banks and finance companies to give leases..even though the return is almost nothing........a person intends to buy a old vehicle on cash basis...now thinking to go for a new vehicle with a lease ...definitely the used cars will loose market...but what will happen next...i could smell a crisis similar to subprime mortgage crisis

If this was true, there would be no used vehicle markets in economies like US and UK where financing a new vehicle is very easy for those with good credit. Sometimes, you don't even need a down payment. But a thriving 2nd hand market exists, albeit at realistic values (and you don't get really old crapboxes, unless they have value in terms of being limited editions etc)

[The Don]

  On 11/5/2014 at 11:08 AM, vishkid said:

If this was true, there would be no used vehicle markets in economies like US and UK where financing a new vehicle is very easy for those with good credit. Sometimes, you don't even need a down payment. But a thriving 2nd hand market exists, albeit at realistic values (and you don't get really old crapboxes, unless they have value in terms of being limited editions etc)

What drives prices down in other places is the cost of repair. After a while its not economically feasible to fix an old car and cheaper to buy a newer one. In SL garage labour is still relatively cheap.