Import Tax Slashed By 50%

[ravisam]

Look dad. You are going out of context . This is not about whether buying a Maruti is prudent or not. With your level of maturity dad you should have understood the context of this discussion. This is about the market reality dad. Not all the kids in Sri Lanka are as mature as you dad and that is why you see so many Marutis on the road. And dad I am sorry you cant change that. If everyone prefered Jap over Indian, dad please explain to your children how you see so many Marutis on the road. Please dad, this is not about why people should or should not buy Marutis. We are discussing the market reality dad. Are you having catract dad and unable to see?

I also hate cheap Indian scrap, as people in the forum majority in for Japanese vehicles. If you need further explanation ask from a guy who drives a Maruti

[Rebel]

very true but the issue is... at least as far as i can see it... the price of brand new cars and recons have a huge lead over 2nd hand cars.

true cars like maruti's would be super affordable but that alone is not enough to take down the demand of cars under the 2mill bracket.

Say what would the alternative be for like a used FB15, N16 or a honda, mazda in the same bracket?

I don't see how even the recons coming under the new taxes can hit at those...

IMHO...cars around 3 mill and over will have a stronger impact in terms of depreciation. People with more money can now afford something new rather than settling for used cars.

But for car buyers in the 2 mill bracket... not so much of luck!

maybe i'm wrong...but i just don't see how things could be different

This is exactly what I said or think I said previously. It;ll be cars at the higher and lower end of the spectrum that are effected as the price difference between a second hand car and a recon will be much lower than before. This means the vios's 121, maruti's. Cars in the price bracket 1.5 to 2.2/3 wont be effected, The difference between a new and used honda is still considerable.

The segment that can afford only a second hand car will still only be able to afford a second hand car..

A 'crash' in any true sense is not going to happen even if the SL car market is driven by market dynamics.

[Rebel]

@LBoard your sarcasm really drips....

Each person would buy a maruti for several reasons.

1. It could be that they are inexperienced and dont want the hassle of regular maintenance

2. They may have wanted to buy a decent jap (or euro) car but couldn't get one in decent condition so decided to compromise with the same priced but newer maruti

3. They could be price conscious and a stickler for yom so bought the maruti

4. They may perceived the smaller car as a better city car

5. The could be brand conscious.

6. The fuel efficiency of the car could be a reason and so on. The reasons are endless.

As you yourself said you car measure the whole by the part.. So consumer would react differently to the new prices. But in general I stand that it'll be the cars at the two extremes that are hit most..

[MasterDon]

ok time to put my 2 cents in the pot

as per my understanding,(and some peple have already said this in the thread) used petrol cars below 2.5 mil will remain largely unaffected,though a slight price drop is inevitable...petrol cars below 1.2 million will not be affected at all...pickup and suv's will be the most affected,but I wouldn't optimistic as some people who's waiting to buy "dirt cheap" in three months...infact IMO it's better to buy now and use the tax reduction as a bargaining tool

and please dont get me started on that crap box called the maruti 800...drove one recently and i started hating mysef for doing so...I feel sorry for those asshats who buy in to this "english numbered" or " economical" tag associated with that looser cruiser ...i'd rather buy a 40 year old corolla ke 20 than that brand new piece of garbage.

[xXx]

Davinda it is really hard to quote an exact figure till people start to clear new vehicles legitimately through the customs. My numbers came to what Milindu said earlier. 141, Allion will see a duty reduction of about 600k - 800k. Formula that is used to calculate the total amount of duty/taxes is pretty complicated. Certain taxes are calculated on top of others while certain ones are stand alone. I doubt any of the calculators available on the web is accurate.

I’ve noticed lot of websites and news sources popping up like mushrooms with fancy numbers on the new tax structure. I find them to be the biggest culprit in spreading a distorted picture instead of the so called rumours spread by car salesmen.

Now for the burning issue of what'll happen to the second hand market???? When you take into account the erratic behaviour of the market it is very difficult to make any predictions. I too was surprised to hear and see that some sellers are still quoting high prices. My belief is these area small time sellers (i have also included people who are looking to sell their existing car hoping to buy a shiny unreg soon in this category) who don't have the financial might to take a hit and move on. My view is they will play a key role if there is to be a price crash in the near future. If they continue to quote high prices and if importers flood the market with imports from singapore (which will likely happen) like the vios, civic(fit aria) , liana etc then these small timers have to adjust their prices. If so we'll see a 10 - 20% drop in the average second hand car segment i.e. 121, Allion (NTZ 240) etc. But if they (small timers) continue to resist they may enter a panic mode and then we may see a sharper decrease till the old stock is cleared out and then the market will readjust to the 10 - 20% level.

On the topic of Maruti's role in the new market. My personnel view is over the years with the amount of economic hardships the middle class had to endure they have become very price elastic. People have adopted a strategy of cutting corners at any cost. Maruti with its new pricing will definitely eat into the older jap car segment. Not only cars bellow 1 mill mark but even the 1 - 1.5 mil segment will have a huge impact if the Maruti is actually to be sold for the quoted (unofficially) price.

Unfortunately for the people who expected a huge price drop... well they may just have to wake up from their dreams.

Edited June 7, 2010 by xXx

[Sylvi]

QUOTE (Killer-B @ Jun 7 2010, 09:31 PM) <{POST_SNAPBACK}>

Your "dad" thingy makes it incredibly annoying to read..... first thing I would say to you is PLEASE DO NOT TRY TO BE ANOTHER SYLVI for god's sake

Like Dilesh said, you just mentioned that given the choice of a jap and a indian car, you would go for a maruti. Either you have amnesia or you have cataracts being unable to see your previous post or you have just forgotten that you posted such a thing...

Now you come here and talk about some "Market reality" and you blame me for going out of context.... what a dick!

And you don't stop there;

You know what....... I'M PROUD TO BE A SRILANKAN

PLEASE DO NOT TRY TO BE ANOTHER SYLVI for god's sake.

What do you mean by Quoting me on this post Did I cheat you or rob you. Your are writing out of topic.

Do not Quote me in future

Wijesinghe.

[Watchman]

PLEASE DO NOT TRY TO BE ANOTHER SYLVI for god's sake.

What do you mean by Quoting me on this post Did I cheat you or rob you. Your are writing out of topic.

Do not Quote me in future

Wijesinghe.

He didnt quote you or accuse you of cheating or robbing you. Please learn to understand english.

[sklsaminda]

The bad news is, today lankadeepa says, පෙට්‍රල් - ඩීසල් මිල ලගදීම ඉහලට.

:unsure:

[Sylvi]

He didnt quote you or accuse you of cheating or robbing you. Please learn to understand english.

I DO UNDERSTAND GOOD ENGLISH.

I HOPE I DO NOT MAKE MISTAKES IN WRITING SOMETIMES MAY BE BECAUSE OF MY FAST TYPING.

YOUR REPLY ABOVE HOW MANY MISTAKES PLEASE GO CAREFULLY AND READ.

IT WAS VERY UNNECESSARY TO QUOTE MY FORUM NAME AND MAKE A SARCASTIC REMARK.

WIJESINGHE

Edited June 8, 2010 by Sylvi

[Watchman]

I DO UNDERSTAND GOOD ENGLISH.

I HOPE I DO NOT MAKE MISTAKES IN WRITING SOMETIMES MAY BE BECAUSE OF MY FAST TYPING.

YOUR REPLY ABOVE HOW MANY MISTAKES PLEASE GO CAREFULLY AND READ.

IT WAS VERY UNNECESSARY TO QUOTE MY FORUM NAME AND MAKE A SARCASTIC REMARK.

WIJESINGHE

Your actions on the forum have earned you a reputation (and not a good one).. hence the reference to you. And it ended there. As for the "cheating and robbing", you went looking for hats that fit and aparently found one. Aint no-one's fault but yours:P

I shall not further drag this thread OT by responding to your (new) statements.

But i do apologize for not having english as good as a Sylvi.

[Watchman]

The bad news is, today lankadeepa says, පෙට්‍රල් - ඩීසල් මිල ලගදීම ඉහලට.

:unsure:

Sorry... i dont have unicode on this computer... can someone translate it to english for me (and the benifit of others like me)

Many thanks!

[sharky]

Oh god don't let the resident AL troll out from under his little bridge, this topic is very useful/interesting as it is. You know I've been looking for a decent 2nd hand sports hatch for sooo long, but the ridiculous prices have been putting me off. This tax cut is just what we need. Most folks don't want or need a drastic cut but some of the asking prices are absurd! Everyone

I know who has been looking for a car in the 2nd hand market has put off buying till prices drop. Those who are in a hurry are planning on a quick trip to japan.

[MasterDon]

Oh god don't let the resident AL troll out from under his little bridge, this topic is very useful/interesting as it is. You know I've been looking for a decent 2nd hand sports hatch for sooo long, but the ridiculous prices have been putting me off. This tax cut is just what we need. Most folks don't want or need a drastic cut but some of the asking prices are absurd! Everyone

used sports car will remain pretty much unchanged I think,(tho I'm eagerly awating the prices for new rx8's that land here) ...so will the classics,which are appreciating like crazy,they are the best investment on four wheels after the tax cut...LOL

[L board]

I think buying a Maruti has become THE topic now. My example has been taken quite out of context by most people.

I think in the Maruti example if I used "some people will buy a BN Maruti" instead of "I will buy a BN Maruti", people may have understood better what I was trying to explain (beasue people DO buy Marutis. It is an option for THEM). Phew

Please please understand the context in which I was talking. I will let you guys discuss Maruti vs rest (I am least bothered because my bracket is none of these). All what I will do is that after three months time I would be happy to reopen this thread to see where we actually stand in the second hand market (the context in which I was talking about). My apologies for anyone who got offended with my sarcasm.

For three months time, bye bye for this thread

[sonick]

hey i think the point on looking fr a decent unregisterd car..in the 2.5 million category isnt happening

ANY unregistered japanese sedan (reconditioned) i might b able to buy for the above price?any suggestions pls?

[mistaken_ID]

Sorry... i dont have unicode on this computer... can someone translate it to english for me (and the benifit of others like me)

Many thanks!

PETROL SAHA DIESEL MILA LANGADIMA IHALATA..

[JAFF]

Just went through the link of the maruti, she has mention some automatic headlight leveler.... Can somebody pllease explain what it is?

i dont think its automatic but you can manually adjust the level of the headlight from the dashboard as if in allion

[Watchman]

I think buying a Maruti has become THE topic now. My example has been taken quite out of context by most people.

I think in the Maruti example if I used "some people will buy a BN Maruti" instead of "I will buy a BN Maruti", people may have understood better what I was trying to explain (beasue people DO buy Marutis. It is an option for THEM). Phew

Please please understand the context in which I was talking. I will let you guys discuss Maruti vs rest (I am least bothered because my bracket is none of these). All what I will do is that after three months time I would be happy to reopen this thread to see where we actually stand in the second hand market (the context in which I was talking about). My apologies for anyone who got offended with my sarcasm.

For three months time, bye bye for this thread

it'd be pretty cool to bring back a thread after such a long given time. An "I-told-you-so" that's 3 months old should be quite interesting. Why not set a benchmark for to measure of the market's gone down. Say a something like "Brand : XXX Model: YYY YOM : XXXX/XX milage: XXXXXXX options: XXXXXX"

[Watchman]

PETROL SAHA DIESEL MILA LANGADIMA IHALATA..

thanks

[JAFF]

PETROL SAHA DIESEL MILA LANGADIMA IHALATA..

JAYAWEWA!!!!!!!!!!!!!!!!!

[samanp]

There is a rumor going on which says due to the sudden increase in demand for Japanese vehicles the auction prices are gone up in Japan. Anyone else heard that / can verify that?

[Watchman]

There is a rumor going on which says due to the sudden increase in demand for Japanese vehicles the auction prices are gone up in Japan. Anyone else heard that / can verify that?

Sounds more like something a car-sale owner would spread to keep the benifit of the tax reduction for himself. Yet, it IS only a rumor so me not pointing fingers

[VWvortex]

There is a rumor going on which says due to the sudden increase in demand for Japanese vehicles the auction prices are gone up in Japan. Anyone else heard that / can verify that?

[jerryda]

hey i think the point on looking fr a decent unregisterd car..in the 2.5 million category isnt happening

ANY unregistered japanese sedan (reconditioned) i might b able to buy for the above price?any suggestions pls?

http://www.customs.gov.lk/news/VEHICLE.pdf

[harshansenadhir]

There is a rumor going on which says due to the sudden increase in demand for Japanese vehicles the auction prices are gone up in Japan. Anyone else heard that / can verify that?

demand in Sri Lanka to impact japanese auction sales of used cars? hell no. If this demand triggered from African continent I can understand but this is not significant for that market. Having said that, there are Sri Lankans who runs some of these auction sales. Imagine the rest