Why Are Cars So Expensive In Sl?

[chris_abayasinghe]

Hi!

I have been an avid follower of AutoLanka since I discovered the website 3 months ago. I have not been back home since 1999, except for a short vaction in 2003, and I am amazed at how expensive cars have become in SL. When I bought my ride, back in 1997, I paid only 4.5 lakhs for the ride and it was hot back then. As I read through the forums and see what the whips are going for now - it blows my mind!

Can someone please educate me as to (as an example - no disrespect to the Honda crew!) how/why someone would spend 20-30 lakhs ($20,000-$30,000) for a reconditioned civic? You can buy a brand new one here for under $20,000 (the SI model I think). Any insight?

Chris

[Hola]

Hi!

I have been an avid follower of AutoLanka since I discovered the website 3 months ago. I have not been back home since 1999, except for a short vaction in 2003, and I am amazed at how expensive cars have become in SL. When I bought my ride, back in 1997, I paid only 4.5 lakhs for the ride and it was hot back then. As I read through the forums and see what the whips are going for now - it blows my mind!

Can someone please educate me as to (as an example - no disrespect to the Honda crew!) how/why someone would spend 20-30 lakhs ($20,000-$30,000) for a reconditioned civic? You can buy a brand new one here for under $20,000 (the SI model I think). Any insight?

Chris

By saying

You can buy a brand new one here for under $20,000

I hope you were not talking about Sri Lanka. Here the new version (imported from Thailand) goes around 4.8 to 5.3 and im not sure its with value added tax (VAT) or not. A japanease recon 2000-2003 will go around 2.4milion to 2.5million. A RS is very rare but exceeds 3milion rupees. A Sri lankan used registred EG8 will be going from 850,000 to 1.1milion depending on the number plates and condtion. A used regsitred EK3 will be going from 1milion to 2.1 million depending on the number plate, condtion, RS,VTEC version.

The reason why cars are very expensive in SL is becuase of the stupid politicians spending goverment money on stupid stuff and trying to recover that by huge taxes on the cars. And further more the new "Export Certificate" will raise the car prices further by 2-3laks. For the last 2 years the goverment made the imported cars go up by 30% becuase of the newly introducing taxes.. Only worry is now is if a defence tax comes in to force recover funds/expenses of the goverment, it wil make a another considerable impact on the car price

[isurujosh]

By saying I hope you were not talking about Sri Lanka. Here the new version (imported from Thailand) goes around 4.8 to 5.3 and im not sure its with value added tax (VAT) or not. A japanease recon 2000-2003 will go around 2.4milion to 2.5million. A RS is very rare but exceeds 3milion rupees. A Sri lankan used registred EG8 will be going from 850,000 to 1.1milion depending on the number plates and condtion. A used regsitred EK3 will be going from 1milion to 2.1 million depending on the number plate, condtion, RS,VTEC version.

The reason why cars are very expensive in SL is becuase of the stupid politicians spending goverment money on stupid stuff and trying to recover that by huge taxes on the cars. And further more the new "Export Certificate" will raise the car prices further by 2-3laks. For the last 2 years the goverment made the imported cars go up by 30% becuase of the newly introducing taxes.. Only worry is now is if a defence tax comes in to force recover funds/expenses of the goverment, it wil make a another considerable impact on the car price

brand new civic 1.8L 5.1mn(inclusive of all taxes i guess)- 51000$

civic 2L 5.9mn. - 59000$

camry(2.4L) 8.1mn - 81000$

s class merc 35mn - 350,000$ !!!!

Average salaries of professionals: harly 10% of whotz paid else where!!!

per capita income hardly 1000$ p.a.

thatz what i call THRIVE IN CHAOS

[Mean Green z28]

that's just rediculous!

[Morgoth]

The reason why cars are very expensive in SL is becuase of the stupid politicians spending goverment money on stupid stuff and trying to recover that by huge taxes on the cars. And further more the new "Export Certificate" will raise the car prices further by 2-3laks. For the last 2 years the goverment made the imported cars go up by 30% becuase of the newly introducing taxes.. Only worry is now is if a defence tax comes in to force recover funds/expenses of the goverment, it wil make a another considerable impact on the car price

Your reply hardly sheds light to the question.

The reason the cars here are so expensive is because of ridiculous taxes imposed on vehicles for all manner of things, including whether it is classed as a "luxury" vehicle, and the engine capacity. Therefore, someone with a 3L engine will end up paying around 300% of the price of the car in taxes I believe. In addition to the price of the car of course. Hence, S class mercs that sell for around $350k. As for used cars going at such high prices, I think the owners are just trying to sell them closer to current market value of a new car.

But look on the "bright" side, they brought down the taxes for importing of 3wheelers and motorbikes at the same time

[Gummybr]

Your reply hardly sheds light to the question.

The reason the cars here are so expensive is because of ridiculous taxes imposed on vehicles for all manner of things, including whether it is classed as a "luxury" vehicle, and the engine capacity. Therefore, someone with a 3L engine will end up paying around 300% of the price of the car in taxes I believe. In addition to the price of the car of course. Hence, S class mercs that sell for around $350k. As for used cars going at such high prices, I think the owners are just trying to sell them closer to current market value of a new car.

But look on the "bright" side, they brought down the taxes for importing of 3wheelers and motorbikes at the same time

I think the problem is where they classify the cars.

for example a 1600cc is classified as semi luxury and therefore carries a higher duty than the 1500cc (so a small difference in the cc also makes a huge difference when it comes to duty calculation. Why classify a 1600cc as a semi luxury when it should be above 1800cc & above as there is where the luxury types come into play (Audi, VW, Freelander). The issue is that these vehicles are not imported freely as the 1600cc's.

But I think that it is not that much when it comes to bigger engines above a limit as it will stay static.

The story with the diesels are different as the government is imposing higher duties on the diesels plus you have to pay a higher revenue license fee. So where can we save on fuel. diesel vehicles are lesser in number and people have to pay less for fuel consuming petrols. (I'm talking about the majority of users who are compelled to use petrol instead of diesels which are more costlier).

By the way if you take India who normally tries to put a hold on import of vehicles has only a duty figure of about 110%. So you can see the difference compared to other countries.

The other thing that I dont like is the local product being marketed at a higher value. WHereas an Indian product will be cheaper if it comes on duty free basis.

[porkster]

Hi!

I have been an avid follower of AutoLanka since I discovered the website 3 months ago. I have not been back home since 1999, except for a short vaction in 2003, and I am amazed at how expensive cars have become in SL. When I bought my ride, back in 1997, I paid only 4.5 lakhs for the ride and it was hot back then. As I read through the forums and see what the whips are going for now - it blows my mind!

Can someone please educate me as to (as an example - no disrespect to the Honda crew!) how/why someone would spend 20-30 lakhs ($20,000-$30,000) for a reconditioned civic? You can buy a brand new one here for under $20,000 (the SI model I think). Any insight?

Chris

Ehhhh heh Malla, welcome to the site, yes cars are a ripoff here but what to do. Only good thing is when us poor ole Shri's come to the good ole US of A we'll be having maxa pimped rides cos we pay Porsche prices here for Uni student compacts

Cheers, Porky (aka ur lokku aiya)

[Hola]

Ehhhh heh Malla, welcome to the site, yes cars are a ripoff here but what to do. Only good thing is when us poor ole Shri's come to the good ole US of A we'll be having maxa pimped rides cos we pay Porsche prices here for Uni student compacts

Cheers, Porky (aka ur lokku aiya)

good!! everyone! its a family reunion!

[isurujosh]

good!! everyone! its a family reunion!

[chris_abayasinghe]

By saying I hope you were not talking about Sri Lanka. Here the new version (imported from Thailand) goes around 4.8 to 5.3 and im not sure its with value added tax (VAT) or not. A japanease recon 2000-2003 will go around 2.4milion to 2.5million. A RS is very rare but exceeds 3milion rupees. A Sri lankan used registred EG8 will be going from 850,000 to 1.1milion depending on the number plates and condtion. A used regsitred EK3 will be going from 1milion to 2.1 million depending on the number plate, condtion, RS,VTEC version.

The reason why cars are very expensive in SL is becuase of the stupid politicians spending goverment money on stupid stuff and trying to recover that by huge taxes on the cars. And further more the new "Export Certificate" will raise the car prices further by 2-3laks. For the last 2 years the goverment made the imported cars go up by 30% becuase of the newly introducing taxes.. Only worry is now is if a defence tax comes in to force recover funds/expenses of the goverment, it wil make a another considerable impact on the car price

That is interesting. It now raises the next question (ahem... let me know use my economics backing) where the market demand and supply meet is when an equilibrium is met and thus sets the market price. In this instance, it seems that either the demand is inelastic (as in regardless of price, demand is present) or, a new emerging class of purchasers now have the disposable income to purchase these cars. My question, though long winded, is this: have the incomes in SL increased relative to the cost of living?

As a side note - I live in the US and we have the ability to purchase cars destined only for the North American market. They only recently started to bring the EVO and STI's here. Reading from the website it seems that the engine capacities of these models here are somewhat different than the domestic market (Japanese) models. The prices of a well equipped STI run in the high 20's to mid 30's.

And to the PORKSTER - I did not know you also cruised here!

Cheers!

Chris

[Pericles]

My question, though long winded, is this: have the incomes in SL increased relative to the cost of living?

Ur touching a sore point Personally speaking, no.

[isurujosh]

That is interesting. It now raises the next question (ahem... let me know use my economics backing) where the market demand and supply meet is when an equilibrium is met and thus sets the market price. In this instance, it seems that either the demand is inelastic (as in regardless of price, demand is present) or, a new emerging class of purchasers now have the disposable income to purchase these cars. My question, though long winded, is this: have the incomes in SL increased relative to the cost of living?

As a side note - I live in the US and we have the ability to purchase cars destined only for the North American market. They only recently started to bring the EVO and STI's here. Reading from the website it seems that the engine capacities of these models here are somewhat different than the domestic market (Japanese) models. The prices of a well equipped STI run in the high 20's to mid 30's.

And to the PORKSTER - I did not know you also cruised here!

Cheers!

Chris

If u know ur ecnoms an inflation the distribution of national income worsens... plainly rich people get richer poor people get poorer! dat explains part of the story as to why the cars still sell(y people thrive in chaos ) the other aspect is a young wave of educated prefessionals running personal loans/car leases etc... generally speaking Sri Lanka has honestly been growing only that it's true potential has not been exploited thanks to government policies!

Ur touching a sore point Personally speaking, no.

Chris I am in the same industry as he(Preveen) is(more or less) and I can assure than his income must have risen 2-3 fold over the past couple of years or so(i guess he had been working at the same place i.e. MIT)

[Mustang]

hi all

[Mean Green z28]

hi all

wuttup yo!

[Mustang]

i am new to Auto lanka ...what i mean is to this Forum...but i log on to it all the time to see wahts happening in the car world in Colombo...

well i was realy in to the Scene when i was in colombo...

but now i am out of the country.

[SpeedHolic]

Chris I am in the same industry as he(Preveen) is(more or less) and I can assure than his income must have risen 2-3 fold over the past couple of years or so(i guess he had been working at the same place i.e. MIT)

Nope it has not, belive me i have heard him complain many times...

[Mustang]

this is my Ride over here

he guys how do you up load a Pic to this?

this is my Ride over here

he guys how do you up load a Pic to this?

ok i think i have some problem uploading the pic...

its a 2005 Blue Mustang GT

4.6 V8 Manuel....

damn hot car ......

this is my Ride over here

he guys how do you up load a Pic to this?

ok i think i have some problem uploading the pic...

its a 2005 Blue Mustang GT

4.6 V8 Manuel....

damn hot car ......

ok got it...

gess how much this cost?>>>

[isurujosh]

Nope it has not, belive me i have heard him complain many times...

Hey u r da guy who drove the vz-r on the event right?

anyway a few of my friends started working in MIT quite recently(one of them apparently named Isuru) and they have got quite hefty hikes! i was speaking of that knowledge!

anway we shall stop talking personal stuff b4 a moderator gives us a warnning!

this is my Ride over here

he guys how do you up load a Pic to this?

ok i think i have some problem uploading the pic...

its a 2005 Blue Mustang GT

4.6 V8 Manuel....

damn hot car ......

ok got it...

gess how much this cost?>>>

hey nice ride bro! itz this V8 datz used in the Saleen S7 right?

/oops just rechecked... no may be not... urz is 4.6L eh? Saleen has a bigger capacity?

Edited August 16, 2006 by isurujosh

[Pericles]

Chris I am in the same industry as he(Preveen) is(more or less) and I can assure than his income must have risen 2-3 fold over the past couple of years or so(i guess he had been working at the same place i.e. MIT)

FYI, in two years my salary has risen to somewhat less that twice my starting, so don't be too hasty to assure people of things u have no knowledge about.

anyway a few of my friends started working in MIT quite recently(one of them apparently named Isuru) and they have got quite hefty hikes! i was speaking of that knowledge!

Not everyone gets the same cut, same as any other company. There were plenty of gripes after the last round of increments. AKA, ur knowledge is somewhat short.

Edited August 16, 2006 by Pericles

[porkster]

That is interesting. It now raises the next question (ahem... let me know use my economics backing) where the market demand and supply meet is when an equilibrium is met and thus sets the market price. In this instance, it seems that either the demand is inelastic (as in regardless of price, demand is present) or, a new emerging class of purchasers now have the disposable income to purchase these cars. My question, though long winded, is this: have the incomes in SL increased relative to the cost of living?

As a side note - I live in the US and we have the ability to purchase cars destined only for the North American market. They only recently started to bring the EVO and STI's here. Reading from the website it seems that the engine capacities of these models here are somewhat different than the domestic market (Japanese) models. The prices of a well equipped STI run in the high 20's to mid 30's.

And to the PORKSTER - I did not know you also cruised here!

Cheers!

Chris

Ehhh Malla,

Yes it's a family affair now (move over Sly n The Family Stone)

As for econ conjecturing, none of it applies correctly to Sri Lanka, simply because we got most of our forex income from Blue collar and housemaids sending in tons o dolla hollas.

We got fuel subsidies so even the man walking pays for fuel yet the price is still huge. Are the cars these importers bring in really worth that much??? Heck no! Do you really think they only keep a Rs.5-10K profit margin?? Heeeeellll no! You check Jap auction sites for Corollas and Sunnies and they be damn cheap. Even after the huge 300% taxes they still be cheap but our buggers have mark ups of 100s of Ks.

If anyone can get a hold of the Ports or Customs sheet for tax breakdowns please post here we can all get down our own cars.

We got tuk tuks running haywire chargin more to go 1 mile than a cab! Rs. 100 for a KM for a tuk tuk versus Rs. 25 with a cab! Tuk tuk get 30 Ks per liter and they've been given a further inceNtive by cheaper 87 octane fuel with the 'hope' they will conscientiously reduce their rates...NOT! Metering? Duh what's that they say?

Consumer affairs....gee wish Ralph Nader was Sri Lankan! we have an affairs ministry but they sit on their heinies all day or we would not have situs like haywire Tuk tuks, CBN SAT or Pramuka Bank.......

So what's the point of all this?!! Yeah car's are damn expensive more than houses but our folks buy em, bank's give leases, we all go broke paying for a ride and the delaers are very happy! So let's all start recon car joints! HUZZAH HUZZAH

Cheers, Das Pork

[Mustang]

Hey u r da guy who drove the vz-r on the event right?

anyway a few of my friends started working in MIT quite recently(one of them apparently named Isuru) and they have got quite hefty hikes! i was speaking of that knowledge!

anway we shall stop talking personal stuff b4 a moderator gives us a warnning!

hey nice ride bro! itz this V8 datz used in the Saleen S7 right?

/oops just rechecked... no may be not... urz is 4.6L eh? Saleen has a bigger capacity?

ya my one is the GT not the Saleen,,,

They dont bring the Saleen over here...

[isurujosh]

ya my one is the GT not the Saleen,,,

They dont bring the Saleen over here...

i meant the Saleen engine is derived from a Mustang! anway no more than a couple of S7's have ever been sold

[isurujosh]

FYI, in two years my salary has risen to somewhat less that twice my starting, so don't be too hasty to assure people of things u have no knowledge about.

So in two years ur salary has risen somewhat less that twice aka to nearly twofolds (100% increase) right? datz exactly wot i said bro!

Not everyone gets the same cut, same as any other company. There were plenty of gripes after the last round of increments. AKA, ur knowledge is somewhat short.

diz z da funniest part!

working in s/w industry i know dat cuts can be very very different depending on performance! but having known ur intellect wit all the arguments i have had in the past i know dat u should be in the better performers list hence in the well compensated list!

/Sure itz none of my business (and i am sorry, in case u got offended) but i made my point right!

[Pericles]

So in two years ur salary has risen somewhat less that twice aka to nearly twofolds (100% increase) right? datz exactly wot i said bro!

diz z da funniest part!

working in s/w industry i know dat cuts can be very very different depending on performance! but having known ur intellect wit all the arguments i have had in the past i know dat u should be in the better performers list hence in the well compensated list!

/Sure itz none of my business (and i am sorry, in case u got offended) but i made my point right!

less than 2x does not fall into ur between 2x and 3x range.

I'll not drag out the dirty laundry in this public forum. Do keep in mind, however, that discussing and speculating on people's salaries in public is rude and vulgar.

[Hola]

less than 2x does not fall into ur between 2x and 3x range.

I'll not drag out the dirty laundry in this public forum. Do keep in mind, however, that discussing and speculating on people's salaries in public is rude and vulgar.

why not giving them a warning mate?