Looking to Buy a Budget Car

[Lucky1]

Hi, I'm planning to buy my 1st car. But there is some news that vehicle imports will be allowed in next 7 months.

Recently Toyota advertised that new KDH will be available to purchase for 15.5Mn after tax. Same vehicle (2019 Model) is currently selling for around 28.0 Mn

I fear that prices of cars will be dropped drastically after allowing imports and want to reduce the loss of buying an old car.

Therefore, can you please guide me which car to purchase without lossing great amount of money.

 

Mid Range Cars Preferred 

Aqua (2012/2013)

Fit GP1 (2012/2013)

Axela (2007 or later)

 

Budget Cars Preferred 

Hyundai Eon

Kia Picanto

Suzuki Alto (Indian)

Any car on similar range

 

Specially interested on Hyundai Eon as it only cost 3.5-4.0 Mn

 

 

[iRage]

  On 5/5/2024 at 5:47 AM, Lucky1 said:

Recently Toyota advertised that new KDH will be available to purchase for 15.5Mn after tax.

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These are only for organizations registered with the tourism board as tourism service providers (hotels, tour operators, etc...). You need to show that you have brought and can bring in 300,000 USD per year in revenue to get approval for 1 vehicle. Then for each block of 100K USDs they allow an additional vehicle each. So, as you can see, only large tourism operators can afford this, and normal people are not even eligible. So do not believe everything you read on Facebook (which is flooded with comments from keyboard warriors).

Secondly, opening up imports. Well. If there is an election coming up then the politicians would like to make sure promises (and those in power might actually do it) just to get votes. Either way, considering the reserves the country has and the debt obligations, logically it is unlikely that mass imports will be allowed, or if it does that it can be sustainable.

Now...as a part of the funding from donors, etc...includes requirements to open up the free market. however, cars are a low priority. So if car imports are to be opened up in line with this, it is most likely going to be very restricted imports. So the imported cars (for the mass market) are still going to be expensive because supply is going to be way below demand, currency is still pretty weak, especially with the USD getting stronger globally, and most importantly, our car broker mafia is going to hold up prices high no matter what. Never in the history of Sri Lanka have car prices gone down. They might fluctuate downwards a little bit but it has never gone down to prices of an era before it.

I am not a fan of any of the budget cars on your list. Although they do get the job done. They also get aged quite a lot with use. Out of the list I am more partial towards the Picanto.

As for the mid-range cars. The Axela/3 will be the best all rounder. Larger car than the other two. No frills gasoline engine. Does not have hyped up prices for a badge like Toyota. Aqua, Fit...bot decent choices if you can find a good example. Being hybrids they do come with hybrid system related maintenance requirements (and even issues if not maintained properly) like swapping battery cells, etc...

[Lucky1]

  On 5/5/2024 at 6:28 AM, iRage said:

These are only for organizations registered with the tourism board as tourism service providers (hotels, tour operators, etc...). You need to show that you have brought and can bring in 300,000 USD per year in revenue to get approval for 1 vehicle. Then for each block of 100K USDs they allow an additional vehicle each. So, as you can see, only large tourism operators can afford this, and normal people are not even eligible. So do not believe everything you read on Facebook (which is flooded with comments from keyboard warriors).

Secondly, opening up imports. Well. If there is an election coming up then the politicians would like to make sure promises (and those in power might actually do it) just to get votes. Either way, considering the reserves the country has and the debt obligations, logically it is unlikely that mass imports will be allowed, or if it does that it can be sustainable.

Now...as a part of the funding from donors, etc...includes requirements to open up the free market. however, cars are a low priority. So if car imports are to be opened up in line with this, it is most likely going to be very restricted imports. So the imported cars (for the mass market) are still going to be expensive because supply is going to be way below demand, currency is still pretty weak, especially with the USD getting stronger globally, and most importantly, our car broker mafia is going to hold up prices high no matter what. Never in the history of Sri Lanka have car prices gone down. They might fluctuate downwards a little bit but it has never gone down to prices of an era before it.

I am not a fan of any of the budget cars on your list. Although they do get the job done. They also get aged quite a lot with use. Out of the list I am more partial towards the Picanto.

As for the mid-range cars. The Axela/3 will be the best all rounder. Larger car than the other two. No frills gasoline engine. Does not have hyped up prices for a badge like Toyota. Aqua, Fit...bot decent choices if you can find a good example. Being hybrids they do come with hybrid system related maintenance requirements (and even issues if not maintained properly) like swapping battery cells, etc...

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Thanks you very much for your detailed explanation