Is it advisable to buy a car as soon as possible under the current inflated rates?

[Restorer]

I am planning to purchase a full size sedan. The models I'm looking for have doubled in price or more when compared to the price in 2020.

There is a talk of car prices decreasing dramatically if the SL gov go with IMF. Is this something that can happen? Or in your opinion, do you believe that car prices will only continue to rise and it's better to buy one sooner rather than later?

And if so, would you recommend a diesel or a petrol? (just a reminder that petrol right now is 300~ Rs a litre and will only continue to rise. And these cars don't do better than 10-12 kmpl even in the best of conditions)

Appreciate your thoughts on this.

[iRage]

The way the country is going it is hard to say what on earth will happen the next day.

Will car prices go down ? Doubt it..there might be a slight dip in the prices if the Rs appreciates once a bit of dollars flow in to the country. But will it go down to 2020 prices ? Hell no...

On one hand you can think that the demand for cars will remain high whilst imports are banned. On the other hand, with the prospect of limited/rationed fuel supply/distribution gasoline cars might not be that desirable for many.

It would help to know what cars you are looking at. I reckon some cars would hold value like a leech on to a leg (e.g. Premio), whilst some will be casted aside as evil (e.g. anything with a large engine). 

[Restorer]

I'm having the same exact thoughts @iRage.

I actually plan to go for Cedric/Crown/Mark 2/Benz(90s e-class models) cars. The diesel variants of these are very efficient, I'm sure you know.

Like you say, it seems like the prices will never return to normal given that our country situation is on a downward spiral with no proper brakes. Even though the prices of these models have doubled, I feel that if I don't buy one now, I might lose millions when I try to buy the same model next year. 

This IMF factor has been on my mind, but I think now it's a gamble more than anything else  

[matroska]

18 hours ago, Restorer said:

I am planning to purchase a full size sedan. The models I'm looking for have doubled in price or more when compared to the price in 2020.

There is a talk of car prices decreasing dramatically if the SL gov go with IMF. Is this something that can happen? Or in your opinion, do you believe that car prices will only continue to rise and it's better to buy one sooner rather than later?

And if so, would you recommend a diesel or a petrol? (just a reminder that petrol right now is 300~ Rs a litre and will only continue to rise. And these cars don't do better than 10-12 kmpl even in the best of conditions)

Appreciate your thoughts on this.

I don't think things will reach Pre-2020 prices though it seems  prices have dropped somewhat - for instance as opposed to prices in January/February. One reason is people are finding it difficult to maintain cars. However transportation is a basic need so I don't see how prices will go back to what it was in 2019. 

Diesel vs Petrol - again if you run a lot then Diesel will be cheaper if it's a weekend runner then petrol would make more sense. 

In a  nutshell if you have a car - hold on to it. If you want to buy one try to go for the cheapest practical option. Also might be advisable to stay with mainstream brands as getting down parts is also becoming a hassle. 

[iRage]

18 hours ago, Restorer said:

I actually plan to go for Cedric/Crown/Mark 2/Benz(90s e-class models) cars

As @matroska had mentioned...think about maintenability as well....getting access to parts for rarer/less-common cars might be problematic.

[Restorer]

Thanks both for the comments. Appreciate the thoughts

[kush]

IMF might condition to relax import restrictions that might allow vehicle imports

However

Duty might be increased

Dollar/ Yen unlikely to come down to 2020/21 level

In the world market vehicle prices have increased. Corolla that was around Y 2.2 Mn in 2020 is now Y 2.8 Mn

No permits will be offered at least for a considerable period until we get our reserves build up

 

At the moment vehicle prices have comedown due to

High interest rates no one can afford to finance unless buying for cash

Those who were on personal loans and floating rates are on trouble due to high installment and they are down sizeing

High cost of living and taxes forcing people to look at alternate transport/ down size/ sell the 2nd vehicle etc.

Lot of business are in trouble and they are forced to sell their vehicles to payback finances

Migration of middle class

 

In my view vehicle prices may increase if at all when the stability comes

Anyone with cash this may be a good lime to buy.

[iRage]

37 minutes ago, kush said:

Corolla that was around Y 2.2 Mn in 2020 is now Y 2.8 Mn

Uhh...no..not really..last I checked a Corolla sedan/hatch/wagon (2020 upwards) is now about 2.0 mil to 2.5mil yen depending on the age and condition, etc... petrol ones are more towards the bottom end of that price bracket. In fact the car prizes over here have started to see a slight dip since 2020/2021 prices (see note below for more ranting). We got a brand new Corolla Touring in December for 2.8mil yen (slightly less than MSRP and will all the addons and tax/registration). Even if there is a slight tick up in the price, don't forget that the yen itself has significantly weaked since its 2020 days (109 average to 137 average per dollar)

What has changed significantly is shipping cost. So when importing a car to SL the cost will be higher than before. But when exporting cars...the biggest price hike is the markup that the exporters themselves put in (you know the SL, Pakistani, Bangladeshi, African types..). The markups have gone considerably higher as they try to catch up from past losses.

Note:

It is an interesting situation. Brand new car in-flow has seriously slowed down and the demand for used cars have increased, but interestingly many people around the world simply are not buying cars at volumes like they used to. I do feel that the average person no matter which country they are in are simply not spending on lavish things like cars as much as they used to. Interestingly in Japan, new car sales contracts have increased a whole lot since 2020. But then 

[tiv]

my advise would be to hold on to whatever you have or source something that is from a good owner, as the market is flooded with buy and sell buggers and their kids trying to make a fast buck. All the "market fast moving models" have faux mileages and are loaded with impending repairs. If you monitor the classifieds and Fb Marketplace you may notices the same car exchanging hands quite often for low sums till some mudalali takes it and sells it off to a poor fella in the periphery with a lease. 

Edited March 18, 2023 by tiv

[fiat fan]

7 hours ago, iRage said:

Uhh...no..not really..last I checked a Corolla sedan/hatch/wagon (2020 upwards) is now about 2.0 mil to 2.5mil yen depending on the age and condition, etc... petrol ones are more towards the bottom end of that price bracket. In fact the car prizes over here have started to see a slight dip since 2020/2021 prices (see note below for more ranting). We got a brand new Corolla Touring in December for 2.8mil yen (slightly less than MSRP and will all the addons and tax/registration). Even if there is a slight tick up in the price, don't forget that the yen itself has significantly weaked since its 2020 days (109 average to 137 average per dollar)

What has changed significantly is shipping cost. So when importing a car to SL the cost will be higher than before. But when exporting cars...the biggest price hike is the markup that the exporters themselves put in (you know the SL, Pakistani, Bangladeshi, African types..). The markups have gone considerably higher as they try to catch up from past losses.

Note:

It is an interesting situation. Brand new car in-flow has seriously slowed down and the demand for used cars have increased, but interestingly many people around the world simply are not buying cars at volumes like they used to. I do feel that the average person no matter which country they are in are simply not spending on lavish things like cars as much as they used to. Interestingly in Japan, new car sales contracts have increased a whole lot since 2020. But then 

Yup. The US market is F-up. Its very bad. Finance rates are also up. Plus manufacturers say they do not want to have stock like pre- pandemic. Bastards. 
 

Even a $1000 clapped out beater 01’ civic is now $4000. 

3 hours ago, tiv said:

my advise would be to hold on to whatever you have or source something that is from a good owner, as the market is flooded with buy and sell buggers and their kids trying to make a fast buck. All the "market fast moving models" have faux mileages and are loaded with impending repairs. If you monitor the classifieds and Fb Marketplace you may notices the same car exchanging hands quite often for low sums till some mudalali takes it and sells it off to a poor fella in the periphery with a lease. 

Can agree. Most cars seems to circulating among “stealers” and they hold onto the prices firmly. As with everything in the country. A few big players are running the scene “sale mafia”

I really want a second car in SL, but the prices scare me. The condition is scarier. 
 

Who thought a C200 would have this high a “market”

On the plus side Peugeot’s and Alfa Romeo’s are still not worth jack. WagonR is twice it’s price. My poor pug is almost the same as back then. Good thing I won't be selling it. 
 

@AVANTE guess our pugs take the cup from the Serena as “Sadaakal Oba Mage”

[baladulga]

I hear ya on the crazy car prices lately. Personally, I reckon if you find the right deal and it fits your budget, go for it. No use waiting around for prices to maybe drop.
As for diesel vs. petrol, with petrol prices skyrocketing, diesel might be the smarter move in the long run. Just make sure to weigh the pros and cons based on your driving habits and needs.
When I needed to get my wheels, I used A1 Auto Transport. They got my ride to me hassle-free. If you're ever in need of car shipping services, check 'em out at https://www.a1autotransport.com/florida-fl-car-shipping/

Edited February 16, 2024 by baladulga