Budget 2009 - How It'll Effect To Brand New And Used Vehicle Price?

[CodeMaster]

VAT will remain as it is.. Fuel prices went down.....what will happened to current vehicle prices. What you guys think?

[Devinda_Z]

can someone clarify as to what the exact tax rates are now for

a) Brand New Petrol Cars

b ) Brand New Petrol SUV's etc

c) Brand New Diesel Cars

d) Brand New Diesel SUV's etc

e) Commercial & Dual purpose Diesel Vehicles

& also for reconditioned/used vehicles in the same categories s above?

Edited November 6, 2008 by Devinda_Z

[Miyuru Daminda]

I heard that there is a 100% tax increase for vehicle import. But I don't know about that correctness.

http://www.colombopage.com/archive_08/November6130136RA.html

[vitz]

I heard that there is a 100% tax increase for vehicle import. But I don't know about that correctness.

http://www.colombopage.com/archive_08/November6130136RA.html

I think this is a wrong information. I didnt notice such thing in any news article.

[xXx]

had a quick glance at the budget. from what i understood vehicle prices are to be increased by about 5 - 7%

reason for this is PAL (Port and Airport Development Levy) has been increased from 3% - 5% and a new tax of 1% is introduced on all goods for soldiers welfare (we all know who's welfare that money is for lol)

since VAT is added on top of all these taxes increase is not just 2% + 1% hence my rough estimation of 5-7%

all in all its nothing but a load of bull. VAT has been reduced to 12% but the cess levy has been increased from 50 - 200% on certain essential items. according to Chinthaka its to boost the local industries but I doubt they have the capability to cater to the whole country. especially things like milk, sugar, cloths etc.

it is no doubt the budget was catered for the upcoming elections and the future looks bright for chinthanaya. UNP need to go to the grass roots and unfold what a scam some of these so called reduced numbers and percentiles are

[xXx]

sorry forgot to mention the most important bit. biggest damage to the motor industry was actually done few days ago but it went unnoticed to the majority (maybe because of the '80%' comment army commanders made while sitting on his head).

100% margin on car import letter of credit was increased to 200%. This was to cover up the dollar peg cock up they faced last week (people who keep an eye on the forex chart may have noticed that USD was 108 on thrusday but it was back up to 110 on friday). CB is pouring bucket loads of printed money to keep the rupee overvalued inorder to attract more high interest foreign loans.

[ash]

I heard that there is a 100% tax increase for vehicle import. But I don't know about that correctness.

http://www.colombopage.com/archive_08/November6130136RA.html

Couple of days back I’ve read that the govt. has imposed a bond (or a hold) of 100% of the value on certain items including imported vehicles. That is to reduce the out-flowing of local currency by importation of goods to curb the local recession.

But never read something like this mentioned.

I was actually hoping they'll reduce the petrol prices by at least Rs.50/- which is not an unfair ask. But only Rs. 50/-???? after the global prices has gone down so much??? And have promised to reduce further if the global price comes down more…. What a Joke.

[Gummybr]

can someone clarify as to what the exact tax rates are now for

a) Brand New Petrol Cars

b ) Brand New Petrol SUV's etc

c) Brand New Diesel Cars

d) Brand New Diesel SUV's etc

e) Commercial & Dual purpose Diesel Vehicles

& also for reconditioned/used vehicles in the same categories s above?

PAL goes up by 2%, then Nation tax 1%. But then again according to our accounts they say because of the VAT reduction to 12% vehicle importers will be paying more than a 5-7% increase, must wait for the calculations.

[xXx]

PAL goes up by 2%, then Nation tax 1%. But then again according to our accounts they say because of the VAT reduction to 12% vehicle importers will be paying more than a 5-7% increase, must wait for the calculations.

actually VAT remains at 20% for vehicles and high luxury goods. Gummy what are you going goign ot do about the whole L/C thing? are you guys gona charge some sort of an extra fee?

[Gummybr]

actually VAT remains at 20% for vehicles and high luxury goods. Gummy what are you going goign ot do about the whole L/C thing? are you guys gona charge some sort of an extra fee?

On the VAT issue, its like this there is a certain percent that you can claim, now its less.

I dont think anything more will be charged on the L/C issue as in the long run it will be included in the cycle., Maybe a little bit so that they can catch up on the bank interest. it is normally 10% so do the calculations

[seeker]

Couple of days back I’ve read that the govt. has imposed a bond (or a hold) of 100% of the value on certain items including imported vehicles. That is to reduce the out-flowing of local currency by importation of goods to curb the local recession.

But never read something like this mentioned.

I was actually hoping they'll reduce the petrol prices by at least Rs.50/- which is not an unfair ask. But only Rs. 50/-???? after the global prices has gone down so much??? And have promised to reduce further if the global price comes down more…. What a Joke.

One reason is attibutable to 'hedging' the prices and hence loosing out on the benefit global price reduction, I believe....

[Devinda_Z]

checkout the depreciation on some of the high end vehicles in the UK!

Range Rover Sport TDV8, 2007, 33,000 miles

Sold for: £27,800

Original price: £57,000

Saving: £29,200

Aston Martin DB9 Volante, 2005, 47,000 miles

Sold for: £44,000

Original price: £118,750

Saving: £74,750

Mercedes AMG SL65, 2006, 13,000 miles

Sold for: £49,100

Original price: £150,000

Saving: £100,900

Lamborghini Spyder, 2007, 2000 miles

Sold for: £85,000

Original price: £135,000

Saving: £50,000

Porsche Boxster 2.5, 1999, 51,000 miles

Sold for: £6300

Original price: £34,000

Saving: £27,700

Bentley Continental GT Convertible, 2008, 2800 miles

Sold for: £83,000

Original price: £130,500

Saving: £47,500

Audi RS4, 2007, 12,000 miles

Sold for: £29,200

Original price: £51,000

Saving: £21,800

BMW M3 Convertible, 2006, 22,000 miles

Sold for: £22,100

Original price: £45,000

Saving: £22,900

BMW M6, 2005, 38,000 miles

Sold for: £28,000

Original price: £83,000

Saving: £55,000

Porsche 911 Turbo, 2001, 71,000 miles

Sold for: £24,600

Original price: £86,000

Saving: £61,400

[GTAm]

I'm 99.999% certain that everything will go UP

[Devinda_Z]

anyone fancy importing cars from the UK??

cuz at those prices i figure they'd be able to make up the difference in the freight cost etc right?

[JadeyBlitzen]

anyone fancy importing cars from the UK??

cuz at those prices i figure they'd be able to make up the difference in the freight cost etc right?

im with devinda. this is the best time to get a brand new european car shipped from the uk. thanks to the recession manufacturers are forced to sell cars as cheap as possible. in some cases cars made in mainland europe are now sold cheaper in the uk than what they'd go for in the country it was made in.

depreciation is also heavier on thirstier models and dealers are struggling to shift brand new ones.

best of all the dealers are so desperate you can easily get a sizeable discount (a reaslistic 15% and over in most cases) on most cars.

my advice is buy a newly registered car with around 6000 miles (nicely run in) private or trade (bargain hard!) cos nowadays nobody's buying cars up here

[Devinda_Z]

im with devinda. this is the best time to get a brand new european car shipped from the uk. thanks to the recession manufacturers are forced to sell cars as cheap as possible. in some cases cars made in mainland europe are now sold cheaper in the uk than what they'd go for in the country it was made in.

depreciation is also heavier on thirstier models and dealers are struggling to shift brand new ones.

best of all the dealers are so desperate you can easily get a sizeable discount (a reaslistic 15% and over in most cases) on most cars.

my advice is buy a newly registered car with around 6000 miles (nicely run in) private or trade (bargain hard!) cos nowadays nobody's buying cars up here

what i'm suprised is as to why none of the motor traders here in SL have gotten around to doing this?

or is there something we're missing

[JadeyBlitzen]

what i'm suprised is as to why none of the motor traders here in SL have gotten around to doing this?

or is there something we're missing

as is the case with most trends that come to sl, we fail to notice them early enough or its the wrong ones that we get used, like stepping outside in track bottoms

anyways could it be the government charging some sort of higher tax for european cars?

one word of warning though. before you bring your car down to sl see if the agents for that car can service it (if there is actually a surviving agent for that make)

[xXx]

as is the case with most trends that come to sl, we fail to notice them early enough or its the wrong ones that we get used, like stepping outside in track bottoms

anyways could it be the government charging some sort of higher tax for european cars?

one word of warning though. before you bring your car down to sl see if the agents for that car can service it (if there is actually a surviving agent for that make)

I have a contradictory view on this especially when it comes to motor industry. Competition is so fierce any new methodology/trend at its earliest stage is adopted by so many before you know it the market is flooded. A very good example is the mass import of Peugeot 406's from UK in beginning of this decade.

Tax percentiles are more or less the same no matter where you bring the vehicle from. but the base currency which the tax is calculated differ according to the country of import. There’s not much of an added premium on freight either. Only difference been the use of a container as there are no car carriers operating between UK and SL ports.

You touch base on a very good point JadeyBlitzen it is the agents who are discouraging vehicle imports from Europe. They are renowned for quoting higher valuations thus increasing the amount of custom duty. Same applies for Japanese makes and models. They way I see it there has always been a bit of a cat and a mouse hunt between the agents and the re-con importers. Agents always try their best to discourage re-con imports. For example Toyota Lanka got a big poster in their service department listing certain services they do not carry out on JDMs.

[xXx]

what i'm suprised is as to why none of the motor traders here in SL have gotten around to doing this?

or is there something we're missing

I think the main reason behind this is the poor demand for euro cars. To this date euro cars are a very niche market in SL. Majority of us will pick a conservative jap brand any day even when a euro brand/make that falls under the same category cost cheaper. From top of my mind a good example is AE100 vs BMW E34.

Plus re-con euro cars always struggle when it comes to reselling as brandnew imports always gets the priority. Then you have the whole issue of not been climatized (don't know how true this is but i remember having a discussion on this subject many moons back)

Last but not least , poor market conditions got a role to play in this too. Local motor trade is struggling so much these days due to poor demand/sales. Importation of re-con vehicles has almost come to a grinding halt. A certain mass importer’s flagship dealership in Kandy has been unofficially taken over by the bank due to the amount of debt he own.

Saying all that for all you euro car enthusiast who got some cold hard cash this truly is the time to bring one down. If you can hold on to it for couple of years theirs is the remote possibility of market conditions improving (yea right!!!) and you may be able to sell the car with zero depreciation.

[xXx]

sorry for going OT, all the euro car talk aroused my curiosity, does any one know from where Bandu*a brought down the Elise from????

[madmax]

sorry for going OT, all the euro car talk aroused my curiosity, does any one know from where Bandu*a brought down the Elise from????

Ask the owner himself , Andrew..