Import Tax Slashed By 50%

[hakjay]

Well I think Sellers quote the price they would actually like to get plus a margin for negotiation (and also to try whether they can strike any luck by finding one foolish buyer who is unaware of the tax cut). Buyers will only buy what they feel as the product for the right price. Right now the difference in the two is huge. When the new vehicles arrive, the price of these 10 year olds will naturally drop. It is a matter of time. Well the sellers can still quote 3.5M for a 10 year old 121 whereas the buyers will buy 141 for the same price. So dont worry about what the sellers quote. So the sellers who say they bought the 121 for 3.5M and will not sell it for anything less can take the vehicle with them to the grave yard while the buyers buy only what they see as the right price.

We must also understand that there are lots of sellers in the market who had stocks in hand and they will make desparate attempts to keep the prices up quoting various theories. No doubt this tax cut will make few sellers bankrupt. I saw few places around Nugegoda, Kohuwala, Pepiliyana with huge stocks of King Cabs. Will they be able to still sell them at 4.5+M when the proper 4 doors 4WD double cabs (recon) can be imported for less than 5M? So we must understand that some people were hit quite hard with the tax cut. Also the net worth of all the vehicle owners have just dropped. It is a fact that we must accept, but can't help it. So we just have to wait and let the market stabilize. Wait till the small timers bring vehicles to the market. Then lets see who will buy these 10 year olds for the same price.

Well said!!. Couldn't have put it in a better way.

[charitha19]

Well I think Sellers quote the price they would actually like to get plus a margin for negotiation (and also to try whether they can strike any luck by finding one foolish buyer who is unaware of the tax cut). Buyers will only buy what they feel as the product for the right price. Right now the difference in the two is huge. When the new vehicles arrive, the price of these 10 year olds will naturally drop. It is a matter of time. Well the sellers can still quote 3.5M for a 10 year old 121 whereas the buyers will buy 141 for the same price. So dont worry about what the sellers quote. So the sellers who say they bought the 121 for 3.5M and will not sell it for anything less can take the vehicle with them to the grave yard while the buyers buy only what they see as the right price.

We must also understand that there are lots of sellers in the market who had stocks in hand and they will make desparate attempts to keep the prices up quoting various theories. No doubt this tax cut will make few sellers bankrupt. I saw few places around Nugegoda, Kohuwala, Pepiliyana with huge stocks of King Cabs. Will they be able to still sell them at 4.5+M when the proper 4 doors 4WD double cabs (recon) can be imported for less than 5M? So we must understand that some people were hit quite hard with the tax cut. Also the net worth of all the vehicle owners have just dropped. It is a fact that we must accept, but can't help it. So we just have to wait and let the market stabilize. Wait till the small timers bring vehicles to the market. Then lets see who will buy these 10 year olds for the same price.

i realy hope so dude.. even with a lease i still cant afford a recon or a brandnew... so registered for me...

[jaga]

I checked the CIF value of 2008 Honda CRV 4WD 2500 cc suv through a friend of mine.

2.5 million

Costom Tax aprox 3.0 million(this can vary on the invoice value)

Total cost is 5.5 million.

In here car sale quotes 8.5 million

Stafford B/N 2 Lt on 10 million.

[nadunr]

I checked the CIF value of 2008 Honda CRV 4WD 2500 cc suv through a friend of mine.

2.5 million

Costom Tax aprox 3.0 million(this can vary on the invoice value)

Total cost is 5.5 million.

In here car sale quotes 8.5 million

Stafford B/N 2 Lt on 10 million.

3 million profit for the car sale

[gpmac]

i think the cost will be more in the range of 7 million or maybe even more than that

[Chris0628]

3 million profit for the car sale

NO WONDER WHY THIS COUNTRY IS SO F___D UP

[MasterDon]

OT, but wow you has nice signature

i think it needs to be a bit bigger.

[L board]

I heard that next week approximately 400 vehicles will be cleared and many more in the weeks to come. The unreg Axio 141 from the old stock are still quoted at 4.8M and lets see what happens to them when the new stocks arrive. This is a great case study I think.

We can also see some people repeatedly advertising with old price and new price and their new price is going down with each repetition. However I dont know from where they got that old price. At the same time there are still great entertainers who advertise at prices which make all of us laugh. We must thank them for entertaining us. For example a 2001 Honda civis at 2.4M (which was not even the old price), 1998 Sprinter at 1.8M, a wrotten jeep for 2.5M, Swift jeep model for 1.9M (when an unreg can be bought for 1.6M) etc. So we must thank these people for the great entertainment they provide us.

[fayas]

i think it needs to be a bit bigger.

thank you

[Pericles]

NO WONDER WHY THIS COUNTRY IS SO F___D UP

Yeah, coz ppl don't think.

Cars are not things that sell in high volume. That margin also needs to cover rent, overheads, salaries, commissions. Even the agents will sell low volumes. Do you have any idea of the staff they employ? How much do you think just the payroll comes to at a place like A*W? Do you think the salesmen work for free?

I mean, Jeez, its not really rocket science!

[Sylvi]

Yeah, coz ppl don't think.

Cars are not things that sell in high volume. That margin also needs to cover rent, overheads, salaries, commissions. Even the agents will sell low volumes. Do you have any idea of the staff they employ? How much do you think just the payroll comes to at a place like A*W? Do you think the salesmen work for free?

I mean, Jeez, its not really rocket science!

Mr. Pericles,

You have given the correct picture of automobile dealers.

As i visit to all most all of them I know the overheads they undergo.

I appreciate for your post to the forum members.

Wijesinghe.

[charitha19]

Mr. Pericles,

You have given the correct picture of automobile dealers.

As i visit to all most all of them I know the overheads they undergo.

I appreciate for your post to the forum members.

Wijesinghe.

hmmmmm... lot of pot touching i see..

[shanX]

i think it needs to be a bit bigger.

Ya sure lol. Most people nowadays use Hi-Resolution Monitors, so they have no idea how they works on smaller monitors. But am on 1024x600, so scrolling sucks :/

[SeanD]

hmmmmm... lot of pot touching i see..

Ah pochchiya allanawa...

[xXx]

Yeah, coz ppl don't think.

Cars are not things that sell in high volume. That margin also needs to cover rent, overheads, salaries, commissions. Even the agents will sell low volumes. Do you have any idea of the staff they employ? How much do you think just the payroll comes to at a place like A*W? Do you think the salesmen work for free?

I mean, Jeez, its not really rocket science!

Very well said peri. Not to forget bank interest rates. Do the math, bring down 5 141's that's clsoe to 20mil. Then not to forget things like income tax. They all get aded on to the the final price.

hmmmmm... lot of pot touching i see..

Pot touching or not man got a valid point.

Edited July 2, 2010 by xXx

[xXx]

I checked the CIF value of 2008 Honda CRV 4WD 2500 cc suv through a friend of mine.

2.5 million

Costom Tax aprox 3.0 million(this can vary on the invoice value)

Total cost is 5.5 million.

In here car sale quotes 8.5 million

Stafford B/N 2 Lt on 10 million.

If you really can bring down a CRV for that price why not turn it into a business machang. I'll be your first customer.

You are slighlty off on the CIF (you need to be reeally lucky to come acorss one for that price) and you are way off on the duty value too.

[Sylvi]

Ah pochchiya allanawa...

Mr. SeanD,

Again you want to start Pochchi Allana sellama

Please preserve or empty your chamber-pot.

Wijesinghe.

[isurujosh]

I heard that next week approximately 400 vehicles will be cleared and many more in the weeks to come. The unreg Axio 141 from the old stock are still quoted at 4.8M and lets see what happens to them when the new stocks arrive. This is a great case study I think.

We can also see some people repeatedly advertising with old price and new price and their new price is going down with each repetition. However I dont know from where they got that old price. At the same time there are still great entertainers who advertise at prices which make all of us laugh. We must thank them for entertaining us. For example a 2001 Honda civis at 2.4M (which was not even the old price), 1998 Sprinter at 1.8M, a wrotten jeep for 2.5M, Swift jeep model for 1.9M (when an unreg can be bought for 1.6M) etc. So we must thank these people for the great entertainment they provide us.

but wasn't an axio G for sale in autolanka classifieds for only 4 mil?

besides i know one of our colleagues who has ordered an Axio G for 3.7. but the car is due to arrive some time later, may be a month. my dealer has told me also to play the waiting game for axio prices to come even futher down.

[rangerover]

Man! the axio sure is going to crowd the local market in huge numbers

[isurujosh]

Man! the axio sure is going to crowd the local market in huge numbers

i sincerely hope it does happen

Edited July 3, 2010 by isurujosh

[hakjay]

If you really can bring down a CRV for that price why not turn it into a business machang. I'll be your first customer.

You are slighlty off on the CIF (you need to be reeally lucky to come acorss one for that price) and you are way off on the duty value too.

The brand new selling price of the new CRV is not more than US$ 35000 (where I live )

Edited July 3, 2010 by hakjay

[isurujosh]

The brand new selling price of the new CRV is not more than US$ 35000 (where I live )

i think you are not living in sri lanka

[hakjay]

i think you are not living in sri lanka

You got that one correct.

[wrav003]

Hello all, Finally managed to make a post after reading Autolanka blog for more 6months. Specially this blog was very useful.

Just paid for a 2006 Toyota Hiace DX diesel for my supplier in Japan Yen1,850,000 (CIF) 54,000kms (yes got the ODO certificate,no damage or no kai mark)

According to my calculation Tax is going to be around 41laks. So final cost is around 64laks.

I just saw a 2005 hiace advertised in Autolanka for 50 laks . Any idea what went wrong with my purchase?

Thanks... ur thoughts are appreciated.

50% depreciated value given by Toyota for 2006 hiace is Yen 2,000,000

[isurujosh]

Hello all, Finally managed to make a post after reading Autolanka blog for more 6months. Specially this blog was very useful.

Just paid for a 2006 Toyota Hiace DX diesel for my supplier in Japan Yen1,850,000 (CIF) 54,000kms (yes got the ODO certificate,no damage or no kai mark)

According to my calculation Tax is going to be around 41laks. So final cost is around 64laks.

I just saw a 2005 hiace advertised in Autolanka for 50 laks . Any idea what went wrong with my purchase?

Thanks... ur thoughts are appreciated.

50% depreciated value given by Toyota for 2006 hiace is Yen 2,000,000

what is odo certificate? is this anything other than the auction certificate given? is the odo reading in auction certificate untrustworthy?

Edited July 4, 2010 by isurujosh