Don't Be Hurry To Buy A Vehicle

[nadun kulasekara]

This current increasing of value of vehicle despite the tax reduction is due to many reasons

(1) Car sale owners try to get more profit with resent increasing of demand.

(2) Less vehicles arrived yet to Sri Lanka.

(3) Bit more rise in the value of vehicle in Japan with sri Lankan demand.

(4) Increase of demand in Sri Lanka.

(5) Care sale owners try to spread a roomer that this tax reduction is temporary.

(6) Price of 2nd hand vehicle market is not change that much expected.

(7) Problem facing at custom when clearing vehicle in individual importing, so most go to care sale dealers.

With the government announced new tax reduction, everyone expect 1/3 reduction of vehicle value. Unfortunately at the time of tax reduction 2nd hand market has reached it highest level. That picture has created by care sale owners. After announcement of tax reduction only the value of 2nd hand vehicle reduce up to the level of the value in 2010 beginning. Once these car sales owners start to import new vehicle they try to maintain the local market value by keeping the 2nd hand market value high. Don't get caught to these people. They are maintain there MAFIA.

Government don't want to increase the tax due to they expect a high profit from this. If they don't reach their target they expect to give another tax reduction in next budget. Don't be hurry and don't get caught to this mafia. Be patient and observe the market how it change. Don't be hurry and be silly.

eg: Toyota Belta 1.3-G 2007 was about 35 lks (with past tax charge)

After time tax reduction 21-22 lks

Now it has reached 29-31 lks

Car sale owners bring it here 20-21 lks now

Best buying price 22-23 lks

Now buying one u may loss 6-7 lks by end of this year

[Watchman]

So what do you propose to someone who needs tobuy a car? :

Just sit and wait (and take the bus) while car-sales decide they no-longer want to keep a profit of '6-7 laks' on a belta?

Edited August 20, 2010 by Dilesh

[isurujosh]

i figured this is the same joker who is desperately searching for a corolla NOW it self. such a lame shot at trying to "crash" the local market before he buys his vehicle with an obscure post.

[Harindraj77]

i figured this is the same joker who is desperately searching for a corolla NOW it self. such a lame shot at trying to "crash" the local market before he buys his vehicle with an obscure post.

Guys..

One person in the market cannot decide the market price... it's a collection of many factors comes in to a eqilibrium price and this is no longer a monopoly merket...

What he's trying to do is like the singhala saying "Kelani gangen pol-lellak Giya wage"

Bugger has a bloody anger with car sales...in 1st place

One fool starts dancing and think others will also follow...

A cist of a belta is around 27-lks when it comes to the counrty.. I also have checked with many sources and silly part is some people tend to advance for vehicles that they have just seen few images... you never know what you will really get...

Good luck...

[Gayan Weerakoon]

I heard that the import duty is going to be decreased to the prices we had in 1999 to 2000. So best is to sell your car now and wait for prices to come down

[AsankaAuto]

@ Harindraj77

So how can you justify the selling price of Allion NZT260(2007/2008) at about 5.4 to 5.8mn by car sales when the total cost would be at 4.3mn to 4.8mn

And Axio X grades at 4.3mn where as cost wouldn't exceed 3.5mn

[TURBOMAN]

One thing is quite obviouse,

"THE BENIFIT OF TAX REDUCTION HAS NOT REACHED THE NORMAL PEOPLE"

Car salesman making the most out of it giving just a little fraction to people.Thats the truth

But the thing is we cant help.car sales persons are providing a service that cannot be done by our selves.And they claims a big sum of money for their service.Simply thats called MARFIA.

Ideal thing is the government should involve to standardize the prices if they do care about average people.

So no point in going upstreams,just get hold to a good vehicle which meets your expectations.Dont wait till the price reductions if you need a car desperatly.Because it will increase your adrenalin and other stress hormones and make you feel bad all the time.

bye folks.

[chamilrajapakse]

This current increasing of value of vehicle despite the tax reduction is due to many reasons

(1) Car sale owners try to get more profit with resent increasing of demand.

(2) Less vehicles arrived yet to Sri Lanka.

(3) Bit more rise in the value of vehicle in Japan with sri Lankan demand.

(4) Increase of demand in Sri Lanka.

(5) Care sale owners try to spread a roomer that this tax reduction is temporary.

(6) Price of 2nd hand vehicle market is not change that much expected.

(7) Problem facing at custom when clearing vehicle in individual importing, so most go to care sale dealers.

With the government announced new tax reduction, everyone expect 1/3 reduction of vehicle value. Unfortunately at the time of tax reduction 2nd hand market has reached it highest level. That picture has created by care sale owners. After announcement of tax reduction only the value of 2nd hand vehicle reduce up to the level of the value in 2010 beginning. Once these car sales owners start to import new vehicle they try to maintain the local market value by keeping the 2nd hand market value high. Don't get caught to these people. They are maintain there MAFIA.

Government don't want to increase the tax due to they expect a high profit from this. If they don't reach their target they expect to give another tax reduction in next budget. Don't be hurry and don't get caught to this mafia. Be patient and observe the market how it change. Don't be hurry and be silly.

eg: Toyota Belta 1.3-G 2007 was about 35 lks (with past tax charge)

After time tax reduction 21-22 lks

Now it has reached 29-31 lks

Car sale owners bring it here 20-21 lks now

Best buying price 22-23 lks

Now buying one u may loss 6-7 lks by end of this year

Are you in the real world mate? I hope the prices will come down.

But can you suggest me any place where I can buy a Toyota Belta 1.3-G 2007 for less than Rs. 800,000 CIF to Colombo? The tax for this car would be minimum Rs. 1.5Mn.

So according to your calculation we should buy this car for a maximum price of Rs. 600,000 from the exporter (CIF Colombo price) in order to settle at the total cost of Rs. 20-21 lakhs.

I think your values are pretty optimistic. I would suggest the best buying price would be around Rs. 2.5 - 2.7 Mn for this car considering current market conditions.

[SeanD]

I heard that the import duty is going to be decreased to the prices we had in 1999 to 2000. So best is to sell your car now and wait for prices to come down

Really? Do you have a reliable source or is it just kata kathaa to get our hopes up

Edited August 20, 2010 by SeanD

[MkX]

@ Harindraj77

So how can you justify the selling price of Allion NZT260(2007/2008) at about 5.4 to 5.8mn by car sales when the total cost would be at 4.3mn to 4.8mn

And Axio X grades at 4.3mn where as cost wouldn't exceed 3.5mn

It is justifiable as there is a demand to buy that car for the price you've given here. If there is no demand then price will eventually come down.

But if somebody wants to rebel and people are ready to stay away from buying all this imports for 3 months GO AHEAD I am ok with that too. Infact I would love to see that happen.

[Pericles]

Why are you guys talking about this as if its some startling new discovery? We already had a huge multi-post discussion about this months ago! Read the old threads!

[jami]

hey dont try to blame what he said, i am not trying to justify him. but the story is true, as per tax reduction belta 1.3cc should in 2.2-2.3 M range.

But it is not as it is, but there is a high demand of value in japan due to the reduction of tax here.

Important thing is the real benefit never goes to middle level people, they really in a positive and happy mood to buy a vehicle due to the tax reduction, but most of the car sales man try to EAT these people from this chance. we can expect few decrease of value by the time.

another thing is government plan to decrees the tax by 10-15% from next budget.

SO if you have money tree in your garden you can buy a BMW, but YOU the middle level people DREAMS to have a vehicle, better to stay for a month or two.

GOOD LUCK

[Pericles]

Its true, but again, this was predicted and discussed already.

What you guys discussing this again don't seem to get is, there are people BUYING at these prices, so the sellers are giving it at those prices! If people are buying at inflated prices, sellers are not under any obligation to keep to something that some people think is "justified". Thats the way a free market economy works. Its not price fixed by the govt. This aint Samba.

[isurujosh]

I heard that the import duty is going to be decreased to the prices we had in 1999 to 2000. So best is to sell your car now and wait for prices to come down

mind sharing more information on your statement?

[TharakaWi]

Like Pericles said, we are already discussing pretty much the same thing in very detail in another thread. Tax going further down is a very interesting new development . To me that doesn't sound all that logical... Like it was discussed in the other thread, vehicle imports only help us loosing our foreign reserves. And it's not like that we have an over dose of reserves here. However, there obviously is a "hope" that tax will further reduce, especially coz the 2nd hand market didn't crash...

For those of whome who "think" that the cost of belta 1.3cc cost only 2.7 mn. Yes - true. It was in middle of june and july. I tried really hard to find a belta for 2.7-2.8 range. But I couldn't. My bad... I was analyzing the auction prices; prices of Belta rose sharply. Now a good 1.3cc belta cost around 1.4-1.5 jpy. It used to be around 1.1 mil few weeks back. (These are CIF to colombo prices) These prices are for good grade, good condition, low milage car from an auction. You can also buy "R" grade cars (Cars with accident history) for slightly lesser price from an auction. Sometimes you can buy cars from dealers for slightly lesser price. But then there is no guarantee of the car... In any case, if you can find a good condition Belta 1.3 for less than 1.35 jpy in current auction rates, consider yourself lucky...

This is to AsankaAuto: I don't know about Allion, but i know a bit abt AXIO. An Axio G , white wit over 60k milage could have been brought to the country even untill few weeks before. But ask the same source if they can do the same now? Coloured Axio G with good milage was always above 40. But I know that car sales guys are selling thm for 4.8mil. But if ppl don't buy, they will eventually have to lower the prices. But right now - ppl do buy

[xXx]

eg: Toyota Belta 1.3-G 2007 was about 35 lks (with past tax charge)

After time tax reduction 21-22 lks

Now it has reached 29-31 lks

Car sale owners bring it here 20-21 lks now

Best buying price 22-23 lks

Now buying one u may loss 6-7 lks by end of this year

hey dont try to blame what he said, i am not trying to justify him. but the story is true, as per tax reduction belta 1.3cc should in 2.2-2.3 M range.

So if a Belta can be imported for 2.2 - 2.3 and be sold to close to 3 mil why don’t you budding entrepreneurs in AL start a part time Belta import business. Sell it for 2.5 mil and you'll be pocketing cool 200k every month on top of your day job (assuming you bring down 1 car per month).

If i was a car sale guy i would do the same. When others are selling say 5 car a month with a profit of 500k, total profit 2.5mil I will be able to sell about 20 cars coz my prices are 300k bellow market price and i'll pocket 4mil. Damn these car sale guys are stupid of what huh????

[chamilrajapakse]

For those of whome who "think" that the cost of belta 1.3cc cost only 2.7 mn. Yes - true. It was in middle of june and july. I tried really hard to find a belta for 2.7-2.8 range. But I couldn't. My bad... I was analyzing the auction prices; prices of Belta rose sharply. Now a good 1.3cc belta cost around 1.4-1.5 jpy. It used to be around 1.1 mil few weeks back. (These are CIF to colombo prices) These prices are for good grade, good condition, low milage car from an auction. You can also buy "R" grade cars (Cars with accident history) for slightly lesser price from an auction. Sometimes you can buy cars from dealers for slightly lesser price. But then there is no guarantee of the car... In any case, if you can find a good condition Belta 1.3 for less than 1.35 jpy in current auction rates, consider yourself lucky...

This is to AsankaAuto: I don't know about Allion, but i know a bit abt AXIO. An Axio G , white wit over 60k milage could have been brought to the country even untill few weeks before. But ask the same source if they can do the same now? Coloured Axio G with good milage was always above 40. But I know that car sales guys are selling thm for 4.8mil. But if ppl don't buy, they will eventually have to lower the prices. But right now - ppl do buy

I think what you have said here is quite true...I was personally doing some research on these two cars and the prices that you have quoted above are pretty much in line with current market prices.

[harshansenadhir]

So if a Belta can be imported for 2.2 - 2.3 and be sold to close to 3 mil why don’t you budding entrepreneurs in AL start a part time Belta import business. Sell it for 2.5 mil and you'll be pocketing cool 200k every month on top of your day job (assuming you bring down 1 car per month).

If i was a car sale guy i would do the same. When others are selling say 5 car a month with a profit of 500k, total profit 2.5mil I will be able to sell about 20 cars coz my prices are 300k bellow market price and i'll pocket 4mil. Damn these car sale guys are stupid of what huh????

+1

[isurujosh]

... Coloured Axio G with good milage was always above 40.

don't know what you mean by colored but a friend has already taken his delivery couple of weeks ago or so back on his sliver G Grade for less than 3.7 mil.

Edited August 21, 2010 by isurujosh

[TharakaWi]

don't know what you mean by colored but a friend has already taken his delivery couple of weeks ago or so back on his sliver G Grade for less than 3.7 mil.

Sorry., i wasn't clear i guess. I meant non white n silver cars

[kalana]

someone mentioned that there will be a tax reduction again on November ???? is that true ? any confirmation guys ?

[SeanD]

someone mentioned that there will be a tax reduction again on November ???? is that true ? any confirmation guys ?

Is that what is being said now? (November is the budget). I was under the impression the general thinking is that the high taxes will be slapped back on in November (though I sincerely hope not).

[harshansenadhir]

someone mentioned that there will be a tax reduction again on November ???? is that true ? any confirmation guys ?

logical explanation and general expectation is high import taxes to slap in again.

[TharakaWi]

someone mentioned that there will be a tax reduction again on November ???? is that true ? any confirmation guys ?

If you think logically, highly unlikely this could happen... However our country doesn't always work logically... If I were you i wouldn't take the risk and wait

[defendertdi]

don't know what you mean by colored but a friend has already taken his delivery couple of weeks ago or so back on his sliver G Grade for less than 3.7 mil.

scenario is that as the effect of color to price Grade also mater,as well as year of manu.

L grade one is 4 lakhs cheaper than G grade one.................