Increasing ???

[jami]

from last weeks second hand market prize of used vehicles get increasing....... why is this?

[Supra_Natural]

from last weeks second hand market prize of used vehicles get increasing....... why is this?

Supply and demand would be my first guess.

[Sifaan]

from last weeks second hand market prize of used vehicles get increasing....... why is this?

more demand probably because interest rates are decreasing; this sunday HNB was advertising personal loans @ 14%

few months ago it was ~16%

[Skyline R33]

Too much demand in the market for second hand vehicles. Specially popular Jap models. Any one who wants to sell their vehicle can do so within hours. It is also very hard to find well maintained vehicles so sellers are deciding what ever prices they wish. My dad too was on a hunt for a vehicle and managed to secure one after alot of trouble. Most of the vehicles we came across were badly maintained and the asking price was absurd, but the sad theing is there are people still willing to pay that amount and buy a vehicle. I have notice a slight change in prices for some models but Sunnys, Corollas, Carinas, Noahs are getting expensive day by day.

[zerocool]

Too much demand in the market for second hand vehicles. Specially popular Jap models. Any one who wants to sell their vehicle can do so within hours. It is also very hard to find well maintained vehicles so sellers are deciding what ever prices they wish. My dad too was on a hunt for a vehicle and managed to secure one after alot of trouble. Most of the vehicles we came across were badly maintained and the asking price was absurd, but the sad theing is there are people still willing to pay that amount and buy a vehicle. I have notice a slight change in prices for some models but Sunnys, Corollas, Carinas, Noahs are getting expensive day by day.

Very true, i'm facing the same problem now. Another big issue for me is that it's really hard to find a car with a Manual Transmission these days.

[jami]

one of my friend looking for a N16 2002 model but the prices reach 2.1M for ex saloon... earlier it was in the 1.9m Range

[Watchman]

Would have been much better/helpful if you'd used a more discriptive thread title

"increasing" is such an ambiguous term you know!

[Sifaan]

Would have been much better/helpful if you'd used a more discriptive thread title

"increasing" is such an ambiguous term you know!

a bit like the dialog "adu welada?" campaign

[jdnet]

Too much demand in the market for second hand vehicles. Specially popular Jap models. Any one who wants to sell their vehicle can do so within hours. It is also very hard to find well maintained vehicles so sellers are deciding what ever prices they wish. My dad too was on a hunt for a vehicle and managed to secure one after alot of trouble. Most of the vehicles we came across were badly maintained and the asking price was absurd, but the sad theing is there are people still willing to pay that amount and buy a vehicle. I have notice a slight change in prices for some models but Sunnys, Corollas, Carinas, Noahs are getting expensive day by day.

.........and that my friend is how I ended up selling my cr41 for 2.4 million after 9 years of use. It was just 1 million when my dad first bought it unregistered. On another note, I think there are good deals to be had out there if you are willing to look outside the box. Got a 2000 pajero io turbo for 2.3 last week. Seems like an excellent deal, unbelievably the turbo io's are priced far less than non-turbo's because people think that turbo ones consume a lot more fuel. Everything in the our market is based on myths and lies. The result of this is an increase in demand for common toyota cars and in the end and increase in the price.

There are other cars like VWs and such that are priced substantially low because no one wants them since they are afraid of maintanence and peoples perception of it.

[Supra_Natural]

.........and that my friend is how I ended up selling my cr41 for 2.4 million after 9 years of use. It was just 1 million when my dad first bought it unregistered. On another note, I think there are good deals to be had out there if you are willing to look outside the box. Got a 2000 pajero io turbo for 2.3 last week. Seems like an excellent deal, unbelievably the turbo io's are priced far less than non-turbo's because people think that turbo ones consume a lot more fuel. Everything in the our market is based on myths and lies. The result of this is an increase in demand for common toyota cars and in the end and increase in the price.

There are other cars like VWs and such that are priced substantially low because no one wants them since they are afraid of maintanence and peoples perception of it.

Shhh.... you'll let the secret out! Wayy better that the herds keep going for their indian lunchboxes and japanese apppliances, driving prices into the stratosphere lol... It leaves those of us who appreciate fine machinery in a position to get the euros and such at decent prices

[jami]

Would have been much better/helpful if you'd used a more discriptive thread title

"increasing" is such an ambiguous term you know!

but it is the marketing theory for more discussions/results

[kaushama]

WELL Perhaps it is absurd to go for a second-hand vehicle now. Only issues is that people who want sub 2.5 mil sedan faces a big issue. Tax reduction has not done anything to that market segment as there are no substitutes in the recon market. I don't see many people who use sub 2.5 mil sedan moving into 4 mil recon vehicle segment.

What I learn from the sources that anyway government would gradually do away with this tax system and perhaps in years to come they will introduce a tax system which will not burden end-user anymore. Probably they want more brand-new vehicles to come here than recon crap. Whether it would happen or not is a matter of time.

Anyway there probably would be subtle changes in this tax system and VAT % in the forthcoming budget. Still it would not make an effect in the market if the end result is insignificant. There is always a significant market effect by sale guys. It will take long Time to settle market values unless people start importing themselves and unless we move to other countries like Dubai or Singapore.

[jami]

WELL Perhaps it is absurd to go for a second-hand vehicle now. Only issues is that people who want sub 2.5 mil sedan faces a big issue. Tax reduction has not done anything to that market segment as there are no substitutes in the recon market. I don't see many people who use sub 2.5 mil sedan moving into 4 mil recon vehicle segment.

What I learn from the sources that anyway government would gradually do away with this tax system and perhaps in years to come they will introduce a tax system which will not burden end-user anymore. Probably they want more brand-new vehicles to come here than recon crap. Whether it would happen or not is a matter of time.

Anyway there probably would be subtle changes in this tax system and VAT % in the forthcoming budget. Still it would not make an effect in the market if the end result is insignificant. There is always a significant market effect by sale guys. It will take long Time to settle market values unless people start importing themselves and unless we move to other countries like Dubai or Singapore.

Of course the tax reduction still not help on people who goes for used vehicles, I think it is a failure of this tax system and the course of black market doing by dealers.

From the next budget we heard that there will be pensions and permit for private sector people, and another removal of 15% from the tax. But it will never focus on the market until there isn’t revision of the tax system.

[Pericles]

What I learn from the sources that anyway government would gradually do away with this tax system and perhaps in years to come they will introduce a tax system which will not burden end-user anymore. Probably they want more brand-new vehicles to come here than recon crap. Whether it would happen or not is a matter of time.

A tax system that will not burden the end user? The only tax system that will not burden the end user is to not have any tax at all.

[kaushama]

A tax system that will not burden the end user? The only tax system that will not burden the end user is to not have any tax at all.

Tax system like in developed countries.

http://www2.mercedes-benz.co.uk/content/unitedkingdom/mpc/mpc_unitedkingdom_website/en/home_mpc/passengercars/home/new_cars/models/e-class/w212.flash.html

Road price £27000+ ( App around 6 mil )

Well if we bring this down we will have to pay several multiples as taxes. I think Sri Lanka has go long way to have such system. But government has to strike a correct balance between taxes and retail road prices. And perhaps encourage importing more brand new vehicles and economical versions.

[TharakaWi]

Sri Lankan vehicle market is actually quite funny. With the rumours of removal of VAT, any person with some sense would think the car market would head down. What happens is exactly opposite! No matter how much you reduce tax - second-hand market prices increase!

What gov should do is introduce a yearly tax system; something similar to in japan. Gov should collect tax from cars that are older than certain number of years. older the car, higher the tax.

Eg: Let's say gov decides to collect tax from cars older than 10 years. So cars that are 10 years old should pay a tax of 5% (of it's original b/n value) . Cars that are 11 years old should pay 6% etc...

This way, more people will move to newer cars. Ofcourse, this tax shouldn't be a "too much" of a burden to people either...

Edited September 29, 2010 by TharakaWi

[kaushama]

Other way is to allow popular manufacturers to assemble popular models here in Sri Lanka. And then it would bring down the cost and there will be an economical gain too. Perhaps better recycling for the obsolete vehicles. India is doing this in big way now and it is becoming rare to find imported vehicles there.

[jami]

Sri Lankan vehicle market is actually quite funny. With the rumours of removal of VAT, any person with some sense would think the car market would head down. What happens is exactly opposite! No matter how much you reduce tax - second-hand market prices increase!

What gov should do is introduce a yearly tax system; something similar to in japan. Gov should collect tax from cars that are older than certain number of years. older the car, higher the tax.

Eg: Let's say gov decides to collect tax from cars older than 10 years. So cars that are 10 years old should pay a tax of 5% (of it's original b/n value) . Cars that are 11 years old should pay 6% etc...

This way, more people will move to newer cars. Ofcourse, this tax shouldn't be a "too much" of a burden to people either...

There are tax system in countries the tax take from people will re give to the people with a certain period of time,

For an example the total or portion of tax charge to importing cars can be give again to the people by certain period of time.

[jami]

or else it can give as a benefit for them

Edited September 29, 2010 by jami

[Sifaan]

What gov should do is introduce a yearly tax system; something similar to in japan. Gov should collect tax from cars that are older than certain number of years. older the car, higher the tax.

Eg: Let's say gov decides to collect tax from cars older than 10 years. So cars that are 10 years old should pay a tax of 5% (of it's original b/n value) . Cars that are 11 years old should pay 6% etc...

This way, more people will move to newer cars. Ofcourse, this tax shouldn't be a "too much" of a burden to people either...

I don't see why a tax system should promote people to go for new cars just because they are newer... that's only going to push more forex reserves out of the country... I think it would be great to have an annual tax system and bring down the upfront cost (would also help people escape becoming slaves to banks and leasing companies)

but the tax rate could be varied by emission levels rather than age, which will promote people to go for cleaner cars (e.g. UK new system)

[Pericles]

Tax system like in developed countries.

http://www2.mercedes-benz.co.uk/content/unitedkingdom/mpc/mpc_unitedkingdom_website/en/home_mpc/passengercars/home/new_cars/models/e-class/w212.flash.html

Road price £27000+ ( App around 6 mil )

Well if we bring this down we will have to pay several multiples as taxes. I think Sri Lanka has go long way to have such system. But government has to strike a correct balance between taxes and retail road prices. And perhaps encourage importing more brand new vehicles and economical versions.

Don't suppose you notice it said "On Road price from"? In case you have trouble understanding that, it means there will be additions to that depending on the options you pick. Thats why there is a button that says "configure ..." right above it.

And in any case there are taxes there too. It doesn't go to "will not burden the end user". And they have a variety of other taxes that may not affect the sticker price, but adds significantly to ownership costs. It maybe less of a burden than the SL taxes, but thats not "will not burden". "Will not burden" is having nothing.

Other way is to allow popular manufacturers to assemble popular models here in Sri Lanka. And then it would bring down the cost and there will be an economical gain too. Perhaps better recycling for the obsolete vehicles. India is doing this in big way now and it is becoming rare to find imported vehicles there.

Toyota sells 2.5 million vehicles EACH YEAR in the US alone, therefore they have invested in having plants there which make 65% of the cars for that market. How many brand new vehicles do you think get sold in this country from all brands, total? 14% of the population in this country gets less than $1.25 a day. SLs per capita is only $1972. Do you honestly think Toyota will look at numbers like that and think this is a good place to spend millions of dollars setting up a plant? The cost of a brand new Yaris starts at $12,000. http://www.toyota.com/yaris/ This means saving about 10k a month for a year to buy a Yaris. Saving, not earning. How many people in this country do you think are in a position to do even that? That 14% of the population getting a dollar a day will wont even earn that much in a year. And they have other living expenses. Think Toyota will look at that number and think they can justify a multi million dollar plant? Even if they assume that everyone who can save that money, will absolutely spend it on a Yaris?

[kaushama]

Don't suppose you notice it said "On Road price from"? In case you have trouble understanding that, it means there will be additions to that depending on the options you pick. Thats why there is a button that says "configure ..." right above it.

And in any case there are taxes there too. It doesn't go to "will not burden the end user". And they have a variety of other taxes that may not affect the sticker price, but adds significantly to ownership costs. It maybe less of a burden than the SL taxes, but thats not "will not burden". "Will not burden" is having nothing.

Toyota sells 2.5 million vehicles EACH YEAR in the US alone, therefore they have invested in having plants there which make 65% of the cars for that market. How many brand new vehicles do you think get sold in this country from all brands, total? 14% of the population in this country gets less than $1.25 a day. SLs per capita is only $1972. Do you honestly think Toyota will look at numbers like that and think this is a good place to spend millions of dollars setting up a plant? The cost of a brand new Yaris starts at $12,000. http://www.toyota.com/yaris/ This means saving about 10k a month for a year to buy a Yaris. Saving, not earning. How many people in this country do you think are in a position to do even that? That 14% of the population getting a dollar a day will wont even earn that much in a year. And they have other living expenses. Think Toyota will look at that number and think they can justify a multi million dollar plant? Even if they assume that everyone who can save that money, will absolutely spend it on a Yaris?

Well Peri I agree on what you say. But We are going to have so many Free trade zones in future. For example in Hambanthota we will have some FTZs. I know that Toyota will not build up a plant here to sell cars for SL exclusively. We should get some manufacturers to invest here for Asian market models. But they do have plants in Malaysia and even in Bangladesh, I think. But perhaps we could get investors to come here for FTZs. And perhaps government should encourage local companies to get involve in such a deal and a collaboration. What about Micro then? India has many of their own versions of popular brands. That is one way to introduce affordable but good cars for majority, who can afford only a cheaper car. Perhaps cost effective cheaper versions. I know we are in a country and in place, where some people think an AXIO or CIVIC is a soulless car and beat up them, while majority will not dream to go in a Maruti in their life time. But government should think beyond and big perhaps to change things. Singapore did that few years back. Anyway who am I to give suggestions like this? I just wrote one of my silly ideas so forgive me. (-: I can give very good suggestions on my trade if I am asked yet people may dislike it. LOL

In case you have trouble understanding that, it means there will be additions to that depending on the options you pick. Thats why there is a button that says "configure ..." right above it.

I know that is not the price for an E class Merc in UK and price starts there. I have used those buttons to configure the models few times just for fun!!! LOL! In UK there are systems, you just pay monthly amount to use a Brand new Mercy and move on for the next model in two years taking some of the value you have paid. Say £800 for month. They have systems like that. Majority of Sri lankans, who want vehicles need cheaper yet cost effective vehicles. Not mercs! Not even a soulless AXIO. That is why people shout for a reduction in second-hand market. For that government need to ease off the end-user, perhaps mostly people who can't buy Buggatis or mercys. Those people who travel in marutis need more concessions. Still it will burden them but in relative terms there will be less strain.

Well You sound bit upset there in your comment. You are not angry with me for some reason. Are you?

Anyway I have given up on second-hand cars and bought a soulless car just to go from A to B. But I still feel for people who can afford a Maruti only and they deserve more I think.

[Skyline R33]

.........and that my friend is how I ended up selling my cr41 for 2.4 million after 9 years of use. It was just 1 million when my dad first bought it unregistered. On another note, I think there are good deals to be had out there if you are willing to look outside the box. Got a 2000 pajero io turbo for 2.3 last week. Seems like an excellent deal, unbelievably the turbo io's are priced far less than non-turbo's because people think that turbo ones consume a lot more fuel. Everything in the our market is based on myths and lies. The result of this is an increase in demand for common toyota cars and in the end and increase in the price.

There are other cars like VWs and such that are priced substantially low because no one wants them since they are afraid of maintanence and peoples perception of it.

Yeah true, we live in one of those countries where prices of used vehicles go up. Btw dad managed to get a CR51 for 2.1M. He told it was in mint condition but haven't seen pics yet. Pajero IO is a nice vehicle but have read too many comments about the GDI having issues. My friends dad has one and they have never had any dramas. Keep us posted if you have any issues, just curious to know. The euro vehicle myth is very true. I saw a 406 hatch on AL couple of days ago for 1.4M and that sounded like a really good deal to me. Specially considering the ride and comfort you get with those euros.

The market would take ages to settle because say there is a tax cut and the prices go a little bit down, many families who had a old car or an Indian one consider upgrading since it is a bit affordable for them. When many fall in this category, automatically the demand rises also people with a bike consider upgrading to a Jap recon or Indian vehicle so the demand for that segment stays high.

Another issue I have noticed is people have more money to spend these days since there is peace and many business are flourishing. So they really don't mind spending more to get their ride. We all know that many car sales have a large margin and they are able to do so because there are people ready with cash to pay for it.

[Pericles]

Well You sound bit upset there in your comment. You are not angry with me for some reason. Are you?

Your wrong. I'm not angry with you. I just don't like you. Big difference.

IMO, you pontificate too much about what "we should" and "the government should" do sprinkled liberally with "perhaps" without any idea of what your talking about. See my signature for the analysis on that.

[jdnet]

Yeah true, we live in one of those countries where prices of used vehicles go up. Btw dad managed to get a CR51 for 2.1M. He told it was in mint condition but haven't seen pics yet. Pajero IO is a nice vehicle but have read too many comments about the GDI having issues. My friends dad has one and they have never had any dramas. Keep us posted if you have any issues, just curious to know. The euro vehicle myth is very true. I saw a 406 hatch on AL couple of days ago for 1.4M and that sounded like a really good deal to me. Specially considering the ride and comfort you get with those euros.

Haven't had any issues with the GDI. Infact it looks like we are switching cars once again and getting rid of the civic to replace it with another 2000 turbo IO. Lol I should just start a car sale. The turbo IO actually made my wife go crazy and it seems like the civic won't work well on the village roads we have to drive on anyway. The IO actually drives and better than my grand cherokee. Been pumping 95 octane so I doubt i'll see any issues. Although I do need to install a turbo timer.