Buying a car at a time when prices are artificially inflated

RoughRider · September 13, 2020

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?

Quiet · September 23, 2020

On 9/22/2020 at 1:54 PM, Crosswind said:

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.

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The car is already transferred to my name and as i said earlier i will not be selling the vehicle any time before me owning it for six months. I do pay income tax as per returns filed by me but no i have not estimated the profit from vehicle sale because at that time my estimated income was from employment and deposit interest. so may be if and when i sell the vehicle, i may have to increase the tax payment during that quarter.

RoughRider · September 24, 2020

On 9/15/2020 at 8:28 AM, 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

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RoughRider · September 24, 2020

On 9/22/2020 at 11:47 AM, iRage said:

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 ?)

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Spot on iRage??

Current scenario is purely a result of SPECULATION created by those crooks who want "Happy Endings" & is temporary till the hype is over? (simple economics)

If Im a buyer, I would invest the additional amount I pay for a "culprit" car sale guy (say 01 mil) in share market (which is performing brilliantly right now) & earn a sizeable return till the car prices return to normalcy within a short period of time?

Use your brain, not emotions & be patient till you get the fair price for the vehicle you wanna buy?

fiat fan · September 24, 2020

On 9/24/2020 at 4:20 PM, Mass01 said:

I think Autolanka (AL) has an emigrated (or wannabe emigrants) “goon squad,” who has gone to work for these colonial masters that they keep mentioning constantly.

The AL goon squad that presumably does not even live in SL (most) are aggravated…these SL immigrants in another country, probably living in a flat that consists of not more than 100 square feet, with a single flower vase on a puny balcony, are feeling the sympathetic love for us poor Islanders. Commendable.

After reading the following, the Immigrants, living in those flats, can start your castigations, at will…….have FUN. Cos, I am going for a drive to this delightful and cozy Kopi Kade for tea and hot egg hoppers with Nai miris sambola to enjoy your comments blissfully, in my legally registered Tata single cab, that I use for selling veggies to survive ethically.”

Oh wait, if I get a good price for the TATA, I might sell it to this kopi kade owner who wants it, for his business, at a profit, and declare it to the IR. Cos now we have TAX consultants too at AL, inquiring if we declared our profits for taxation purposes. Spies? sellers on AL, beware!

Or No! I will keep that profit to buy POL (coconut) cos it costs Rs.100/- now.

Or wait, should I stop buying that too… to teach a lesson to the Pol mudalalis.

Now the goon squad could call me “Coconut head” from your balconies, whilst enjoying that solitary flower.

Ahem, If a guy is buying an overpriced car, obviously is doing so b’cos of his personal needs. Who are we or you to be ashamed or judgmental of his wanting or trying to impress his pets, neighbors or concubines? That’s his/her call.

If one wants to invest in shares, go ahead. No one should stop you. OR, do you want to ask that on AL too. good idea rt?

And if someone wants to absolve himself from the sins of helping the selling mafia, there are enough genuine sellers who have advertised a few not too old cars out there, reasonably priced (as implied by the immigrants- for our poor Sri Lankans), which would not hurt or annoy the SL emigrants living in AU/USA/GB etc. or be a hindrance to these immigrant’s accumulated wealth, by being a chauffeur to some Caucasian old stooge in those countries.

Furthermore, these cars that are moving in the country right now are the ones that have been already imported and exists inside the country before any debacle stuck the world/all over. The remittances are already out. Pre COVID. So, the money used to purchase these cars right now is only circling inside the country.…..or maybe, just maybe, the money is going out to educate someone’s free educated offspring, in a country that you are slaving in or trying to slave in.

If concerns were to exist about the money going out, it should have been highlighted much earlier, in order to stop the outflow. again, pre COVID matter.

FYI, we rarely import anything now, and if I am not wrong, not for the next two years. That is the commitment our proud Sri Lankas are going through right now to salvage the economy. Like it or not.

Instilling a sense of self-proclaimed ban and trying to teach the Car Mudalalis a lesson and having to fabricate LURVE to save our Sri Lankan’s cherished money, saved for a long time to buy that much anticipated car, from your single flowered balcony is like………bloody gibberish.

I reiterate –

Now the Immigrants, living in those flats, can start your castigations, at will…….have FUN. Cos, I am going for a drive to this delightful and cozy Kopi Kade for tea and hot egg hoppers with Nai miris sambola to enjoy your comments blissfully, in my legally registered Tata single cab, that I use for selling veggies to survive ethically.

Oh wait, if I get a good price for it, I might sell it. At a profit, and declare it to the IR, cos now we have TAX consultants too at AL, inquiring if we declared our profits for the taxes.

Or No. I will keep that profit to buy POL (coconut) cos it costs Rs.100/- now.

Or wait, should I stop buying that too… to teach a lesson to the Pol mudalalis.

Now the goon squad could call me “Coconut head” from your balconies, whilst enjoying that solitary flower.

Will I be barred from AL for this? That’s ok, I’ll live with it and the car prices. It’s not the end of the world. I’d say, I’ll get a life!....

I wonder, what would the immigrants and the wannabe emigrants say?

Ooooh, I am truly excited and awaiting to see the Goons at work now….now, for my plain Tea and Scrumptious egg hopper. Yummy!

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What the Absolute f**k are you yapping about? Get the f**k out whiny ass trashy bitch. You make Zero sense. Why don’t you roll up that hopper and shove it where the sun doesn’t shine?

I smell a nasty-ass car sale buyya who is butthurt, because not everybody in SL are stupid and we exposed these thieving monkeys. @iRage @Davy

Kavvz · September 24, 2020

On 9/24/2020 at 4:20 PM, Mass01 said:

After reading the following, the Immigrants, living in those flats, can start your castigations, at will…….have FUN. Cos, I am going for a drive to this delightful and cozy Kopi Kade for tea and hot egg hoppers with Nai miris sambola to enjoy your comments blissfully, in my legally registered Tata single cab, that I use for selling veggies to survive ethically.”

Oh wait, if I get a good price for the TATA, I might sell it to this kopi kade owner who wants it, for his business, at a profit, and declare it to the IR. Cos now we have TAX consultants too at AL, inquiring if we declared our profits for taxation purposes. Spies? sellers on AL, beware!

Or No! I will keep that profit to buy POL (coconut) cos it costs Rs.100/- now.

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Huh>? What on earth? lol !! Finally some action on Autolanka! More please...!! ??

iRage · September 25, 2020

Aha ! and another one emerges.

@Mass01...

1. The foreign currency out pour was a significant issue even BEFORE COVID-19 (shows that you are one of those who have been clueless). Why did you, taking those leisurely drives to your kopi kade, not see or feel it ? Simple...on one hand...the government, through various policies were asking us so called immigrants to save our foreign exchange in the country (you know...those NRFC accounts and easy exchange to LKR..and those condominiums and stuff so called immigrants were enticed in to buying (no I do not own a condominium anywhere in the world)? On the other hand there were all the foreign workers (you know..the kind most Lankans call servants and baases and treat as lower class people) who lived and worked in the middle east, and east asian countries who were earning foreign exchange and sending it over to SL to support their families.

Guess what ?? Now a majority of those foreign workers do not have their jobs in the Middle East and East Asia...so no more foreign exchange through their salaries. As for the other long term immigrants..well....considering what is happening with the Rupee and the fiscal policies and long terms strategies that change on a daily basis; most are reluctant to send over their hard earned money and also because what ever country they are living in is also probably bracing for a recession.

2. About working hard...you bring up a typical Sri Lankanism...living in the glory and success of others and of our historical achievements (all of which are 100+ years ago) whilst most trying to figure out how to not do anything (perhaps dream about taking leisurely drives to kopi kades).. Yes...we so called immigrants work a lot...and we send our hard earned money to SL. Now..don't you think rather than these people in SL, like we say in Sinhala "ïce gahanawa", actually worked hard themselves...you would not need anything from us immigrants ? You should have been able to raise the country's GDP and lower financial/educational/etc...un-equality by yourselves a long long time ago.

3. You bring up a second sad point about Sri Lankanism which is quite disgusting actually....the size of the house, the type of car you drive, the watches and clothes you wear are not measurements of a person's true value or their success. So it does not matter if the person lives in a mansion or an apartment (which by the way a large number of Sri Lankans in Sri Lanka do..and at the rate that our fellow country men procreate/breed is the only way forward to solve the housing and land issue in the country).

4. Yes...the cars are already in the country....yes the money is not going out of the country anymore....so what you are doing is taking money from one person and putting it in your own pocket through fear mongering and creating false pretenses (i.e. creating an artificial surge in demand to drive the price up). Makes it even worst knowing very well that the prices are going to go down once imports start again and the people buying these cars now are going to take a huge hit. There is nothing wrong in making a profit...but making a profit by jeopardizing someone else is highly questionable. (Plus thing is that buyers are actually starting to wisen up). For a country with people who claim to be devout buddhists/christians/muslims/every other religion under the sun, we are a group of people who have no quandaries in putting our own people down for our own selfish gains.

5. Ask any so called immigrant, your expressions are typical of a small group of individuals we have in Sri Lanka who have a serious inferiority complex when it comes to those who are working or studying (or have done so) abroad. So nothing new you can say to unhinge us so called immigrants.

Yes..AL has a few immigrants in the group who have been around for ages. However, none of us have completely given up on our home country and still have strong connections to back home. We each have our own reasons to have left...but don't forget that most of the reasons boil down to the fact that some of us actually left because of the lack of opportunities and no clear direction for us to pursue what we want. Next time you are thinking of your kopi kade...perhaps reflect on why that is (or don't..why spoil your cup of tea).

This is the only and last thing I will say on the matter....and knowing many of those who do have an inferiority complex when it comes to immigrants; a bit of senseless bashing would likely ensue. I will not respond, but just want to thank you for the entertainment.

Edited September 25, 2020 by iRage

iRage · September 25, 2020

On 9/24/2020 at 4:20 PM, Mass01 said:

Will I be barred from AL for this? That’s ok, I’ll live with it and the car prices. It’s not the end of the world. I’d say, I’ll get a life!.

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and no...I do not think you have said anything that warrants barring...knowing how open minded the other mods are I seriously doubt any of them would do it either. We have members talking about anything and everything and are pretty open about it (even rather suggestive banter) as long as it does not cross cross any ""legal"" boundaries or resort to racial/personal/religious slurs, insults, etc...

by the way...you do know that hoppers are a food culture import right ?

Davy · September 25, 2020

On 9/24/2020 at 5:47 PM, fiat fan said:

I smell a nasty-ass car sale buyya who is butthurt, because not everybody in SL are stupid and we exposed these thieving monkeys. @iRage @Davy

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Wow... I don't have the time or energy to read through that post, but it clearly looks like some damaged person. I don't understand how one can be so envious of migrants when the world is a much much different place from 50 years ago. Back in the day, you'd get the same kind of hate if you leave your village and go to Colombo to find a good job/live a better life. The same thing is happening now in an international level, so haters gonna hate hate hate.

Edited September 25, 2020 by Davy

Kavvz · September 26, 2020

On 9/26/2020 at 4:51 AM, Mass01 said:

I’m a vegetable grower, I’ve done/doing my part for the SL economy and its sustenance. A vehicle enthusiasts’ economical advice is, therefore……prattle.

Hence,

Ciao …to the SL Italian

Ayubowan to the rest.

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Aiyo no need to get all upset now: This is the nature of Autolanka, this is almost how we introduce ourselves. No need to get all upset and take it personally...

Stick around. It'd be sad to see you go. And no I don't say this purely out of self interest ( its true - I enjoy a good scrap, when peeps dust off their keyboards and let fly at each other with all they have, it keeps things interesting- yes I'm sick, I know, but I digress...I say stick around because variety is the spice of life, and our differences are the strength of this forum.

We are here to learn and share opinions with each other, and the more diverse they are the better: No point in hearing the same things over and over is there? New thoughts and ideas add richness to the discussion. You speak of growing vegetables, well I don't believe we have had a person who commercially grows vegetables for a living here before. It would be interesting to hear your perspective further....

I understand you are upset, things were said, you said this, they said this...shit happens. Its a forum, it's how things are...

At the end of the day everyone's sitting at laptop yakking about cars and that is a good thing. So take it easy...Eat one of those roti's you were bragging about, and stick around awhile. Who knows- you might end up liking it?

Edited September 27, 2020 by Kavvz

Kavvz · September 26, 2020

On 9/24/2020 at 4:20 PM, Mass01 said:

FYI, we rarely import anything now, and if I am not wrong, not for the next two years. That is the commitment our proud Sri Lankas are going through right now to salvage the economy. Like it or not.

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Also for the record that's not true, they are already considering lifting some import bans / easing some import bans as it's not sustainable, not in the long run.

Import restrictions are a stop-gap measure and only work in the short term. If implemented for too long, inflation will sky rocket and our economy will weaken / become unsustainable rather than stronger. (We are already seeing signs of it now...)

And best of all, you don't have to take my word for it as there are lots of case studies done on it...Google it up, case studies on the Cuban economy are a good place to start...?

Edited September 26, 2020 by Kavvz

fiat fan · September 26, 2020

On 9/26/2020 at 4:51 AM, Mass01 said:

The differences in opinions are respectfully taken (i.e. Irage’s), but no, not the corrugated colloquialism.

Yes, I am a seller, every 3 to 4 years when I want to change my vehicle. Should I get permission from you for that.

AUTOLANKA’s core busines concept is on buying and selling (mostly revolve around selling) and who are you to decide if a seller should not be on this forum (good or bad ones). They are the main customer for AL, the SELLER, that pays for his advertisement.

from AL-

“Best choice for buying and selling cars, vans, bikes, trucks, SUVs, vehicle parts and to be updated with the latest news in Sri-Lanka's Car market. We provide Sri Lankan car market a trusted online marketplace, where you can simply buy and sell cars among thousands of ...”

You are just a facilitating member on a whimsical forum who is tagging his “goon squad” for support and fear of reprisal.

BTW, you sound like one of those Sri Lankans who have migrated to Italy on a boat indulging in a job function of looking after the defecating needs of an old lady, cos the language that those SL Italians use is somewhat similar to yours. Absolute filth.

Oh wait, now I get it…..that’s the reason for your name…. Fiat.

Anyways, I am done with this AL forums. I joined thinking that this forum was to get help in understanding mechanical issues, help in obtaining good garages for specific models, vehicle modifications, restorations, identifying endemic issues with specific vehicles, understanding current market trends from a financial opinion …….all from a Sri Lankan standpoint.

But…. When it is instilling fear about someone’s personal taxations, personal preferences, and then say “what you are doing is wrong, the cat is out of the bag” and “we have found the culprit” for his/her actions and ridicule the individual, the forums becomes ridiculously rubbishy.

I’m a vegetable grower, I’ve done/doing my part for the SL economy and its sustenance. A vehicle enthusiasts’ economical advice is, therefore……prattle.

Hence,

Ciao …to the SL Italian

Ayubowan to the rest.

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I dint have time to read your useless Jargon.

No machan, sadly going to Italy was not possible.

Working in the middle east as a nana’s ass wipe boy(no offense to my nana friends).

Italy ekka yanawanan walapaya hari kamak na kara gahanwa mchn. Apita ubala wage lokuwata wahana maru krnda salli na. Pull pinance dala waggy kellak ganda balan inne, koida itn oba thumala ekka ekath bane.

Wali kathare whiskey wala raha balana apita mona car da saaar!

iRage · September 26, 2020

On 9/26/2020 at 4:51 AM, Mass01 said:

The differences in opinions are respectfully taken (i.e. Irage’s), but no, not the corrugated colloquialism.

Yes, I am a seller, every 3 to 4 years when I want to change my vehicle. Should I get permission from you for that.

AUTOLANKA’s core busines concept is on buying and selling (mostly revolve around selling) and who are you to decide if a seller should not be on this forum (good or bad ones). They are the main customer for AL, the SELLER, that pays for his advertisement.

from AL-

“Best choice for buying and selling cars, vans, bikes, trucks, SUVs, vehicle parts and to be updated with the latest news in Sri-Lanka's Car market. We provide Sri Lankan car market a trusted online marketplace, where you can simply buy and sell cars among thousands of ...”

You are just a facilitating member on a whimsical forum who is tagging his “goon squad” for support and fear of reprisal.

BTW, you sound like one of those Sri Lankans who have migrated to Italy on a boat indulging in a job function of looking after the defecating needs of an old lady, cos the language that those SL Italians use is somewhat similar to yours. Absolute filth.

Oh wait, now I get it…..that’s the reason for your name…. Fiat.

Anyways, I am done with this AL forums. I joined thinking that this forum was to get help in understanding mechanical issues, help in obtaining good garages for specific models, vehicle modifications, restorations, identifying endemic issues with specific vehicles, understanding current market trends from a financial opinion …….all from a Sri Lankan standpoint.

But…. When it is instilling fear about someone’s personal taxations, personal preferences, and then say “what you are doing is wrong, the cat is out of the bag” and “we have found the culprit” for his/her actions and ridicule the individual, the forums becomes ridiculously rubbishy.

I’m a vegetable grower, I’ve done/doing my part for the SL economy and its sustenance. A vehicle enthusiasts’ economical advice is, therefore……prattle.

Hence,

Ciao …to the SL Italian

Ayubowan to the rest.

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Well...if you ever read this....if you have actually been a valuable member and contributor to the AL community you would realize that what ALL OF US HAVE done is give proper advice about cars, etc...including the financial aspect that you have brought up IRRESPECTIVE OF WHERE WE ARE. If you know any of the members here we are not the type who have completely left the country and are yapping cluelessly. Just because what we are talking about does not favor a particular member it does not mean we are doing something wrong.

If a complete Sri Lankan based membership was desired with a herd mentality...then there always is the cow-milk site. Yes...having an all Sri Lanka based audience with a herd mentality helps justify market manipulation, etc...(there is a story about frogs in a well).

There is nothing wrong with buying and selling cars...what is wrong is artificially creating circumstances to manipulate the market and supporting that. In other sectors of the market that can get yourself thrown in jail.

Anyway...wish you all the best and a better experience in any other forum that gives you the Sri Lankan context you desire. You are always welcome back.

For everyone else...can you please make sure you keep the language civil ? Also....none of the moderators are actually working for AL...all of us do this on a voluntary basis and get nothing (in kind nor financially). What we do get is to get to know some awesome people who are very willing to help.

MaleCortana · September 26, 2020

Mildly unrelated to the topic and completely unrelated to the scrapping above (although in some wicked sense I do enjoy seeing people go at it once in a while to spice up things a bit) but imo the car market is absolute garbage in Sri Lanka (pre and post the import ban)

Don't get me wrong I love my EP91 to bits, its a hoot to drive and it makes you feel like you're going at 100+ kmph when you're doing 55 so I wouldn't have it any other way, but come on, close to 11,000 USD for an entry-level Japanese hatchback that came out 22 years ago?!? like seriously Sri Lankan cars don't depreciate at all, I saw my father's Corolla Wagon for sale for 4 Lackhs more than he sold it about 14 years ago! The only workaround to this is, is only if you're going to buy cars that have big thirsty engines (SL Standards mind you), Cedrics, Crowns, Camrys, Cefiros but then you face a gazillion different problems (lack of parts, fuel prices etc.)

As a rebuttal a lot of people try to pull the ol' Free Markets argument and start giving lectures on Supply and Demand but its really not that as well. I've seen clapped out hunks of junk that only sell for less than 20k or so than market price of a decently maintained car. Car sellers have a "If I can't sell it for more than I bought it for then I won't sell at all" mentality and then the prices start rubber banding, for example:

"Ah that Corolla is for sale at 1.5 mil, his is 302-xxxx but mine is English Number neh? I can sell for 1.7 at least"

Catalyze this into some herd mentality and all the uncles make the car market go crazy, and no before you come at me with Inflation I sincerely doubt that your average Sri Lankan Joe'thipala knows jack about stuff like that other than the offhanded comment about how a bus ticket was only a couple of cents and a loaf of bread was heavy and 5 cents back in the day.

Really hope for a day when Sri Lankans realize cars are in fact deteriorating liabilities as opposed to steadfast assets in economical turmoil.

iRage · September 27, 2020

On 9/26/2020 at 5:48 PM, MaleCortana said:

Mildly unrelated to the topic and completely unrelated to the scrapping above (although in some wicked sense I do enjoy seeing people go at it once in a while to spice up things a bit) but imo the car market is absolute garbage in Sri Lanka (pre and post the import ban)

Don't get me wrong I love my EP91 to bits, its a hoot to drive and it makes you feel like you're going at 100+ kmph when you're doing 55 so I wouldn't have it any other way, but come on, close to 11,000 USD for an entry-level Japanese hatchback that came out 22 years ago?!? like seriously Sri Lankan cars don't depreciate at all, I saw my father's Corolla Wagon for sale for 4 Lackhs more than he sold it about 14 years ago! The only workaround to this is, is only if you're going to buy cars that have big thirsty engines (SL Standards mind you), Cedrics, Crowns, Camrys, Cefiros but then you face a gazillion different problems (lack of parts, fuel prices etc.)

As a rebuttal a lot of people try to pull the ol' Free Markets argument and start giving lectures on Supply and Demand but its really not that as well. I've seen clapped out hunks of junk that only sell for less than 20k or so than market price of a decently maintained car. Car sellers have a "If I can't sell it for more than I bought it for then I won't sell at all" mentality and then the prices start rubber banding, for example:

"Ah that Corolla is for sale at 1.5 mil, his is 302-xxxx but mine is English Number neh? I can sell for 1.7 at least"

Catalyze this into some herd mentality and all the uncles make the car market go crazy, and no before you come at me with Inflation I sincerely doubt that your average Sri Lankan Joe'thipala knows jack about stuff like that other than the offhanded comment about how a bus ticket was only a couple of cents and a loaf of bread was heavy and 5 cents back in the day.

Really hope for a day when Sri Lankans realize cars are in fact deteriorating liabilities as opposed to steadfast assets in economical turmoil.

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Well...yes...your fathers old car is still 400,000 now and back then it also would have been the same...but you need to look at the future/past value of money. Back then in the late 80s...1 USD was about 35-55 LKR. But now...400,000LKR is a lot lot less...about 500USD ? Which is not bad considering the value of metal in that car. Same with your Starlet. One can argue the same thing for the Premios that were 7mil 4 months ago going for 10mil now...but the thing is the value of the currency has not dropped that much....a slight increase is to be expected...but not this much.

The mentality is mostly because of the myths that have been created in the market (which fuels the herd mentality you referred to). Also, we are all cash strapped because we put so much in to car payments. Thus, losing any money on the car is a lot more than just the loss of the value of the car but also the value of the lost opportunity cost. Because we are so cash scrapped we do not have much to maintain new tech cars..thus the old ones are craved for more as they are simpler to maintain and can be done so by any monkey with a hammer and there are plenty of cheap Chinese parts at any parts shop. So they hold value because of the demand.

MaleCortana · September 27, 2020

On 9/27/2020 at 5:16 AM, iRage said:

Well...yes...your fathers old car is still 400,000 now and back then it also would have been the same...but you need to look at the future/past value of money. Back then in the late 80s...1 USD was about 35-55 LKR. But now...400,000LKR is a lot lot less...about 500USD ? Which is not bad considering the value of metal in that car. Same with your Starlet. One can argue the same thing for the Premios that were 7mil 4 months ago going for 10mil now...but the thing is the value of the currency has not dropped that much....a slight increase is to be expected...but not this much.

The mentality is mostly because of the myths that have been created in the market (which fuels the herd mentality you referred to). Also, we are all cash strapped because we put so much in to car payments. Thus, losing any money on the car is a lot more than just the loss of the value of the car but also the value of the lost opportunity cost. Because we are so cash scrapped we do not have much to maintain new tech cars..thus the old ones are craved for more as they are simpler to maintain and can be done so by any monkey with a hammer and there are plenty of cheap Chinese parts at any parts shop. So they hold value because of the demand.

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Hmmm fixability wasn't an issue I considered, I can see why cars have a plummet in price when they are just out of the dealership warranty period but that wouldn't account for appreciation should it? Older cars should have more expensive stuff to fix the older it gets? o.0

But that's just the thing about inflation, I vehemently deny the fact that your average Sri Lankan understands that the currency value drops over time and adjusts their car price accordingly, example? the lack of political debate/discourse on matters like inflation, except maybe when people were crying about the time a USD hit close to 200 LKR but that's only because it was a milestone event, no one cared when it went from 135ish to 180s

iRage · September 27, 2020

On 9/27/2020 at 12:40 PM, MaleCortana said:

Hmmm fixability wasn't an issue I considered, I can see why cars have a plummet in price when they are just out of the dealership warranty period but that wouldn't account for appreciation should it? Older cars should have more expensive stuff to fix the older it gets? o.0

But that's just the thing about inflation, I vehemently deny the fact that your average Sri Lankan understands that the currency value drops over time and adjusts their car price accordingly, example? the lack of political debate/discourse on matters like inflation, except maybe when people were crying about the time a USD hit close to 200 LKR but that's only because it was a milestone event, no one cared when it went from 135ish to 180s

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Oh no...it is not something that our guys do with thought (and none of us do)...it is also a natural occurrence due to the market forces.

Typically what you say about cars depreciating holds...but that hold depends on market conditions...in a place like Japan, Vietnam, US, with strong manufacturer presence and proper regulation in services, skills and national policies that advocate for safer and eco friendly tech it becomes true.

However, in countries like Sri Lanka where 90% (or even more) are not brand new cars sold with manufacturer warranties. (Those Japanese zero mileage cars do not have manufacturer warranties coverage, etc...and the warranty is a farce). The market is filled with sub standard parts and manufacturer is unable to compete due to the economic status of the owners. The agents cannot reduce prices because they do not have enough market share (i.e. volume in sales) to cover their costs. Then there is also the accessibility to skills...we have limited qualified technicians and well equipped garages. They are mainly concentrated to big cities and even if you do have access to them..the prices are unattractive as there are plenty of maka baases who are 1/10th the rate of qualified techs and garages. Now..put in new cars with new tech...they go against everything above...cheap parts are limited (or non existent), the tech is quite complex and integrated that they require qualified technicians....thus come in cars that have old technologies (Premio/Allion/Vitz/old Axio/E100/110/120 Corollas/T200 Carina/Corona..etc...). The demand for these cars do rise because of all of the the above factors. Examples of these models that are in good condition are getting rarer...those that run also become rarer by the day as most are getting hacked and put off the road or get Frankensteined.

This can be observed in countries like Tanzania and Malawi as well...importing old cars have what is called a dumping tax....but people still do buy the older models and they are quite pricey (not as much as Sri Lanka because the taxes are pretty low) compared to newer cars.

Edited September 28, 2020 by iRage

hondacivic · October 18, 2020

On 9/24/2020 at 2:06 PM, RoughRider said:

Spot on iRage??

Current scenario is purely a result of SPECULATION created by those crooks who want "Happy Endings" & is temporary till the hype is over? (simple economics)

If Im a buyer, I would invest the additional amount I pay for a "culprit" car sale guy (say 01 mil) in share market (which is performing brilliantly right now) & earn a sizeable return till the car prices return to normalcy within a short period of time?

Use your brain, not emotions & be patient till you get the fair price for the vehicle you wanna buy?

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Wise man! I am actually doing that now..sold my car while back and money is in stocks. Using wife's old vitz

hondacivic · October 18, 2020

On 9/24/2020 at 2:06 PM, RoughRider said:

Spot on iRage??

Current scenario is purely a result of SPECULATION created by those crooks who want "Happy Endings" & is temporary till the hype is over? (simple economics)

If Im a buyer, I would invest the additional amount I pay for a "culprit" car sale guy (say 01 mil) in share market (which is performing brilliantly right now) & earn a sizeable return till the car prices return to normalcy within a short period of time?

Use your brain, not emotions & be patient till you get the fair price for the vehicle you wanna buy?

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Wise man! I am actually doing that now..sold my car while back and money is in stocks. Using wife's old vitz

hondacivic · October 18, 2020

By the way, this may or may not be related to this topic..but appreciate if you could share your opinion on my reuqest for buying advice. I am sure you can educate me on this...

Quiet · October 19, 2020

Quote

2018 vehicle done only 18K and tyre replaced

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GayanR · October 19, 2020

On 10/18/2020 at 12:33 PM, hondacivic said:

Wise man! I am actually doing that now..sold my car while back and money is in stocks. Using wife's old vitz

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How do you buy stocks?Through any agent or broker?

hondacivic · October 19, 2020

On 10/19/2020 at 12:10 PM, GayanR said:

How do you buy stocks?Through any agent or broker?

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Through broker machan.

Kavvz · October 30, 2020

In conversation earlier this week a colleague in India mentioned he's selling his car. Ever the car dude, and finally sensing an opportunity to participate in the conference call I asked him what it was etc. To my surprise, I find out that he's selling a 2014 'luxury model' Honda City for INR 6,45,000/- (which is roughly 1.6 mil SLR).

Luckily for me, the conversation swung another way and I didn't have to go into how 1.6 mil in SL doesn't even buy a shit-box let along a 'luxury' Honda City...What crazy times we live in when even our INDIAN neighbors have better automobiles available to them at cheaper costs! ?

fiat fan · November 3, 2020

On 10/30/2020 at 8:41 PM, Kavvz said:

In conversation earlier this week a colleague in India mentioned he's selling his car. Ever the car dude, and finally sensing an opportunity to participate in the conference call I asked him what it was etc. To my surprise, I find out that he's selling a 2014 'luxury model' Honda City for INR 6,45,000/- (which is roughly 1.6 mil SLR).

Luckily for me, the conversation swung another way and I didn't have to go into how 1.6 mil in SL doesn't even buy a shit-box let along a 'luxury' Honda City...What crazy times we live in when even our INDIAN neighbors have better automobiles available to them at cheaper costs! ?

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Was gonna buy the wife a CHR last July. She hated it so didn’t.

Was offered one at 6.2 mil “GT.led 2017.AWD.18k.unreg. No ugly kit.

Now a bloody used example with over 80k is been advertised at 7.6mil.

??

iRage · November 3, 2020

On 10/30/2020 at 8:41 PM, Kavvz said:

In conversation earlier this week a colleague in India mentioned he's selling his car. Ever the car dude, and finally sensing an opportunity to participate in the conference call I asked him what it was etc. To my surprise, I find out that he's selling a 2014 'luxury model' Honda City for INR 6,45,000/- (which is roughly 1.6 mil SLR).

Luckily for me, the conversation swung another way and I didn't have to go into how 1.6 mil in SL doesn't even buy a shit-box let along a 'luxury' Honda City...What crazy times we live in when even our INDIAN neighbors have better automobiles available to them at cheaper costs! ?

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Well.. for the most part, cars in India are cheap because they are built locally. The local automobile industry is protected by the government and the market itself (it is huge...and growing....and highly competitive). Imports do get taxed relatively higher (not as much as we do but still close to 100% I believe).

This could have been us if we were not so busy destroying ourselves back in the 80s and 90s...