Buying a car at a time when prices are artificially inflated

[RoughRider]

So pathetic & unethical to see how these so called "Car sale owners" are manipulating the prices of vehicles which they have already imported. These crooks try to make super profits by creating rumors in the market. On the other hand, they use their network and contacts to buy used vehicles from private owners and resell at much higher prices with fat margins.

It's so hilarious to see cars in the likes of Toyota Allions/Premios which are older than 10 years & clocked more than 100k in mileage are being advertised at 05 million or more for sale??

Don't panic right now if you are looking to buy a vehicle & wait patiently till the speculation is over in the coming months. Don't waste your hard earned money at a time when income sources of general public are badly affected due to the pandemic. Prices will automatically come down when there's no demand for such high-priced vehicles.

Soon there will be price control mechanisms introduced by regulators to curb price hikes to protect the consumers. Hence it is wiser to be a little patient & reward yourself later with a reasonably priced vehicle? than regretting for paying an unrealistic price now??

CHEERS?

[AVANTE]

I've noticed that the vehicles being inflated are the models that are still in production and were still being imported into the country before the ban, this includes minor facelift cars as well. (240s, A3s, Vezels, GP5 etc..) 

But the older models on the other hand are still at the same rate and in some cases, even cheaper..as people in the lower budgets (under 2.5 mil) have a higher possibility of confronting financial issues due to the aftermath of the pandemic, hence they are ready to sell as soon as possible. So people looking to buy decent mid range cars like the E46, FBs, AEs, GP1s, etc are safe. Just don't fall for the sellers baloney and statements like "import has stopped neh" don't apply to these models. 

This means, it's a good time for buyers in this category, as in one hand, loans are being given out at a good rate, and on the other, a considerable amount of people are desperate to sell. 

Latest model year Premio/allion/wagonR buyers on the other hand...well that's a whole different topic.

Whoever thinks paying 12mil for a car riding a decade old platform with rear drum brakes is a good idea should be strangled, shot, hacked, burnt and thrown into meethotamulla along with the rest of the garbage this country doesn't have any use for anymore. 

Edited September 13, 2020 by AVANTE

[RoughRider]

22 minutes ago, AVANTE said:

I've noticed that the vehicles being inflated are the models that are still in production and were still being imported into the country before the ban, this includes minor facelift cars as well. (240s, A3s, Vezels, GP5 etc..) 

But the older models on the other hand are still at the same rate and in some cases, even cheaper..as people in the lower budgets (under 2.5 mil) have a higher possibility of confronting financial issues due to the aftermath of the pandemic, hence they are ready to sell as soon as possible. So people looking to buy decent mid range cars like the E46, FBs, AEs, GP1s, etc are safe. Just don't fall for the sellers baloney and statements like "import has stopped neh" don't apply to these models. 

This means, it's a good time for buyers in this category, as in one hand, loans are being given out at a good rate, and on the other, a considerable amount of people are desperate to sell. 

Latest model year Premio/allion/wagonR buyers on the other hand...well that's a whole different topic.

Whoever thinks paying 12mil for a car riding a decade old platform with rear drum brakes is a good idea should be strangled, shot, hacked, burnt and thrown into meethotamulla along with the rest of the garbage this country doesn't have any use for anymore. 

http://www.aruna.lk/දිනෙන්-දින-වාහන-උස්සන-මිල/

Good to see that the government is interfering to regulate the market prices of vehicles?

Edited September 13, 2020 by RoughRider

[AVANTE]

1 hour ago, RoughRider said:

http://www.aruna.lk/දිනෙන්-දින-වාහන-උස්සන-මිල/

Good to see that the government is interfering to regulate the market prices of vehicles?

This is good to know. I guessed the market would come crashing down at some point soon enough. Good luck to those shady sale bayyas. 

[Crosswind]

1 hour ago, RoughRider said:

http://www.aruna.lk/දිනෙන්-දින-වාහන-උස්සන-මිල/

Good to see that the government is interfering to regulate the market prices of vehicles?

 

45 minutes ago, AVANTE said:

This is good to know. I guessed the market would come crashing down at some point soon enough. Good luck to those shady sale bayyas. 

Building a 30-foot wall will only create demand for 31-foot ladders. Same theory applies here. You can do this with unregistered cars. People will buy unregs, register them and sell them at a higher price once the supply reduces. That's all.

This happened in the past. There was a time when registered Viva Elites were sold at a much higher than unregs when there was a low supply and high demand for the car.

 

[kush]

I feel this fear is created by the car sales guys to get rid of the old stock that was piling up.

Some vehicles prices are inflated by almost 8-10 Mn. eg: Merc GLB

Thinking whether i should get rid of my nearly new cars and move in to something old to replace them once imports commence again.

This is a cycle that happens every 3-4 years. They will open food gates again when the government revenue comes down from taxes.

[matroska]

This is Sri Lankans being Sri Lankans - manipulating whatever prevailing rules/regulations to their advantage. The Kohuwela Cartel made up of the car sale guys and the seedy road-side buyyas(Disclaimer: non-political - means buy-and-sell folk) have a more effective marketing/advertising strategy than marketing departments of legit agents built on fear-mongering, speculation and hear-say. This is easy to do due to the average Sri Lankan's acquired taste for gossip,hear-say and rumors  than legit verified information. For decades the average Sri Lankan car buyer would always trust Suranga with his bracelet and necklace on his non-existent neck croaking in his gal araccku seasoned voice  say 'Owa nam ganna epa boss market na..leda enawa aye itin denna wenne na' over a Manufacturer warranty of 5 years.  In this context it's pretty easy to spread out an idea that this is the last chance to buy a vehicle, and as a result the prices of some popular (made popular by Surangas)  are just crazy. Also due to reduced loan rates people are now taking personal loans and buying cars and  as a result some of these cars actually move maybe not at the crazy prices but still inflated prices. If buying a car is a must it's better to see beyond the herd and go for the many non-mainstream options out there. Sadly people don't realize it - I've seen people including some of our own AL Members try to explain the idiocy behind paying crazy prices for average cars on Facebook car groups but it's too much to grasp for the majority and the buyyas too get infuriated when their opinion is challenged and resort to kunuharupa. Anyway this is just a phase and imports will open at some point. So best is to wait it out. 

[iRage]

Disclaimer @matroska : If you are referring a comments I made on FB regarding Premio vs. BMW (even though the Premio is priced more than the BMW)....I was merely indicating why people find a Premio a better car than a BMW 3/5 series when someone asked what is better a BMW 3 series or a Premio; which by itself was dependent on the very definition of "best" (due to maintainability, usage/maintenance mannerism, etc...).  Because of that, the Premio crowd just go and buy that thing even if it is 12mil. Not that the 12mil price mark is justified. 

Also, on the rest of what @matroska mentioned. Absolutely. The thing is...as I always say and sorry to sound like a broken record....I blame our education system coupled with our colonist mentality. Sad to say this..but the country needs to be broken down....stop imports, stop all the waste in fattening a herd of cows. Stop all these loans on dream projects. Invest in uniform and modern education, healthcare and infrastructure. We have huge disparities in schooling resources. We have world class medical workers who are doing wonders with barely nothing....

[matroska]

double post.

 

 

Edited September 14, 2020 by matroska
double post

[matroska]

30 minutes ago, iRage said:

Disclaimer

No no - not a particular comment but overall on the sentiment of over-paying for average cars including you, me and others have tried to explain to the bunch - it never went down well with them  

 

30 minutes ago, iRage said:

Stop all these loans on dream projects. Invest in uniform and modern education, healthcare and infrastructure. We have huge disparities in schooling resources. We have world class medical workers who are doing wonders with barely nothing....

Very true. 

Edited September 14, 2020 by matroska

[Quiet]

My E200 bought three weeks back is receiving offers for 750K more from sales buggers. Unfortunately i promised the previous owner that im going to personally use the vehicle, hence they sold me the vehicle at a much lower price. So im gonna keep it for some time.

[iRage]

1 hour ago, Quiet said:

My E200 bought three weeks back is receiving offers for 750K more from sales buggers. Unfortunately i promised the previous owner that im going to personally use the vehicle, hence they sold me the vehicle at a much lower price. So im gonna keep it for some time.

well..even if you do sell it....you will have to pay a higher price for a replacement vehicle. So you are not making 750,000 at all

[Quiet]

20 hours ago, iRage said:

well..even if you do sell it....you will have to pay a higher price for a replacement vehicle. So you are not making 750,000 at all

Actually currently the vehicle only run about 8Km daily taking my kid to pre school and back. So it is not an essential requirement and is disposable

[Boeing747]

On 9/13/2020 at 8:49 PM, RoughRider said:

So pathetic & unethical to see how these so called "Car sale owners" are manipulating the prices of vehicles which they have already imported. These crooks try to make super profits by creating rumors in the market. On the other hand, they use their network and contacts to buy used vehicles from private owners and resell at much higher prices with fat margins.

It's so hilarious to see cars in the likes of Toyota Allions/Premios which are older than 10 years & clocked more than 100k in mileage are being advertised at 05 million or more for sale??

Don't panic right now if you are looking to buy a vehicle & wait patiently till the speculation is over in the coming months. Don't waste your hard earned money at a time when income sources of general public are badly affected due to the pandemic. Prices will automatically come down when there's no demand for such high-priced vehicles.

Soon there will be price control mechanisms introduced by regulators to curb price hikes to protect the consumers. Hence it is wiser to be a little patient & reward yourself later with a reasonably priced vehicle? than regretting for paying an unrealistic price now??

CHEERS?

Interesting Post. Yes the current prices are absurd indeed.

[Crosswind]

1 hour ago, Quiet said:

Actually currently the vehicle only run about 8Km daily taking my kid to pre school and back. So it is not an essential requirement and is disposable

Isn't this the root cause of the problem in the first place. Those who don't need cars buy the most expensive ones. Those who need just a Maruti keep buying BMWs.

And we blame the dealers.

If you don't need a car, don't buy one.

By buying a car you don't need, you are contributing to the problem.

Edited September 15, 2020 by Crosswind

[iRage]

27 minutes ago, Crosswind said:

Isn't this the root cause of the problem in the first place. Those who don't need cars buy the most expensive ones. Those who need just a Maruti keep buying BMWs.

And we blame the dealers.

If you don't need a car, don't buy one.

By buying a car you don't need, you are contributing to the problem.

Spot on ! ..and this is rooted in to society's values itself and how we judge our fellow citizens in a very materialistic manner (not to mention people falsely believing cars are a better investment than keeping money in a bank...thus who cares if the FE reserves drain out  ). Colonial era and tribal mind set I tell you

[varotone]

21 minutes ago, Crosswind said:

By buying a car you don't need, you are contributing to the problem.

I beg to differ. While most "popular" models are inflated at present, decent, fun (little old) cars go for reasonably low prices. I don't see a problem with someone buying a second/unnecessary car when prices are low and some are in dire need for cash.

Actually, IF I had a premio/alion I would sell it with a fat profit and buy a couple of fun cars, mod them and even have more cash to spare.

I get to keep a couple of fun cars, some spare cash and would help a cash strapped petrolhead desperate to sell off his ride.

[Crosswind]

1 hour ago, varotone said:

I beg to differ. While most "popular" models are inflated at present, decent, fun (little old) cars go for reasonably low prices. I don't see a problem with someone buying a second/unnecessary car when prices are low and some are in dire need for cash.

Actually, IF I had a premio/alion I would sell it with a fat profit and buy a couple of fun cars, mod them and even have more cash to spare.

I get to keep a couple of fun cars, some spare cash and would help a cash strapped petrolhead desperate to sell off his ride.

My point was about the Sri Lankan mentality. So you and I don't actually differ to be honest.

A vast number of Sri Lankans buy cars to show uncles and aunties next door that they are successful. They mortgage everything including their left testicle because it's got to be a primiyo/bmw/audi/bens or nothing. This mentality is not just among the uneducated plebs but even so-called highly educated and cosmopolitan people. 

In reality they might not need the car and they might not use the car. But they desperately need one as a status symbol.

 

Edited September 15, 2020 by Crosswind

[kush]

On 9/15/2020 at 1:58 PM, iRage said:

Spot on ! ..and this is rooted in to society's values itself and how we judge our fellow citizens in a very materialistic manner (not to mention people falsely believing cars are a better investment than keeping money in a bank...thus who cares if the FE reserves drain out  ). Colonial era and tribal mind set I tell you

Very true both my self and the better half has got so many comments on our Wagon R which we love for our city running (daily runner) which is both practical and easy on the environment than a gas guzzling SUV.

[Quiet]

On ‎9‎/‎15‎/‎2020 at 1:58 PM, iRage said:

Spot on ! ..and this is rooted in to society's values itself and how we judge our fellow citizens in a very materialistic manner (not to mention people falsely believing cars are a better investment than keeping money in a bank...thus who cares if the FE reserves drain out  ). Colonial era and tribal mind set I tell you

At the moment cars are a better investment. That's why i bought it for cash. Money at bank yield only 5% max. and will drop after the end of quarter. property market is also dropping and is not liquid. Investment funds are yielding at 9-10% and will drop further. So in the current context i pre-empted and bought a car and the return at current rate is 10%.

Personally i do not need to show off with a 2010 Benz as i own 2018 Audi A5 as the daily runner.

I can only laugh at these generalized comments of the pundits

[GayanR]

With the introduction of bus lane car prices will go even higher.

[iRage]

It is saddening but yet so humorous that people are not worried that a depreciating commodity like a car can yield better returns than other hard investments. I suppose they simply do not comprehend the state of the economy for it to actually happen and what will further happen to the economy when people keep doing it.  Most the car buyers do not even realise why financing rates are so low...oh well

1 hour ago, GayanR said:

With the introduction of bus lane car prices will go even higher

Its a self balancing thing noh ? Now everyone will be going to cars because the traffic moves smoother...and then car lanes get clogged up and bike lanes free up..then everyone goes back to bikes....the next investment opportunity can very well be scooters and motorbikes  

[Crosswind]

3 hours ago, Quiet said:

At the moment cars are a better investment. That's why i bought it for cash. Money at bank yield only 5% max. and will drop after the end of quarter. property market is also dropping and is not liquid. Investment funds are yielding at 9-10% and will drop further. So in the current context i pre-empted and bought a car and the return at current rate is 10%.

Personally i do not need to show off with a 2010 Benz as i own 2018 Audi A5 as the daily runner.

I can only laugh at these generalized comments of the pundits

In sinhala, they say balala mallen eliyata Panna. 

Congrats for admitting that you are one of those a$$holes who contribute to jacking up car prices (in your words - 'a good investment') 

Edited September 18, 2020 by Crosswind

[Quiet]

On ‎9‎/‎18‎/‎2020 at 8:03 PM, Crosswind said:

In sinhala, they say balala mallen eliyata Panna. 

Congrats for admitting that you are one of those a$$holes who contribute to jacking up car prices (in your words - 'a good investment') 

Well i do not understand (Of course, me being the a$$hole) how prices can be jacked up by me buying a vehicle and then selling. There is a supply shortfall resulting in high demand. This is a cycle that has been occurring in Sri Lanka. Of course prices will drop when the supply normalize but not in the near future due to issues with BOP.

Reality is vehicles are a good investment for the next 06 months. I don't mind some idiot in UK calling me an A$$hole as long as i speculate - invest and gain or loose a few bucks from money ethically earned and ethically invested.

 

[iRage]

So now we have two....so when the country's economy is down in the slums and peoples' economic future is uncertain. Capitalizing on your fellow countrymen's predicament by supporting the fear mongering created by the most unethical businessmen in the country (and Japan) and artificially inflating prices (whilst calling it the nature of a free economy and open market) is "ethical" ? Gotcha!

SIDE NOTES:

1. Just so you know...just because something is legal it does not make it ethical . 

2. What is fair is not what is the "right" thing to do.

3. As I said before, a depreciating asset bringing better returns than hard investments is a HUGE HUGE concern. I said the same thing about how in Sri Lanka the average wage being lower than benefits is a concern !

4. Yes..car sales people in Sri Lanka are the most unethical business people in Sri Lanka and Japan (ever wonder why none of the Japanese owned and operated car exporters sell cars to Sri Lanka ?)

[Crosswind]

6 hours ago, Quiet said:

Well i do not understand (Of course, me being the a$$hole) how prices can be jacked up by me buying a vehicle and then selling. There is a supply shortfall resulting in high demand. This is a cycle that has been occurring in Sri Lanka. Of course prices will drop when the supply normalize but not in the near future due to issues with BOP.

Reality is vehicles are a good investment for the next 06 months. I don't mind some idiot in UK calling me an A$$hole as long as i speculate - invest and gain or loose a few bucks from money ethically earned and ethically invested.

 

Just out of curiosity, do you transfer the car legally to yourself at the point of purchase, disclose to the buyer that you bought the car for the purpose of resale and pay relevant taxes on the profits to the government? If you don't do any of that, you are being neither ethical nor legal.