Post Budget Car Prices Have Come Down

[isurujosh]

Check this out in AL classifieds. you don't see a NZE260 advertised for 4.7 million in AL classifieds everyday. actual selling price may be even less. if you directly import then it will be considerably cheaper yet. looks like slowly but surely there seems to be a decrease in unregistered car prices after the budget. the prices of most unreg. cars for sale also shows a slight decrease. may be this is in response to a possible hybrid exodus from japan to SL.

[Gummybr]

Check this out in AL classifieds. you don't see a NZE260 advertised for 4.7 million in AL classifieds everyday. actual selling price may be even less. if you directly import then it will be considerably cheaper yet. looks like slowly but surely there seems to be a decrease in unregistered car prices after the budget. the prices of most unreg. cars for sale also shows a slight decrease. may be this is in response to a possible hybrid exodus from japan to SL.

Machang unreg car prices are going down alright but I dont see the second hand car market going down the way it is. I see a lot of people asking for way too much on their vehicles. Since when did an AE110 go for 2.0mil +?? or for that matter a Sunny B15 which was around 1.5ml figure has gone up to 1.8mil. Unreg cars will become more cheaper in my opinion due to the duty reduction unless our car dealers go screw up at the auctions. Reason being the reduction in VAT from 20% to 12% on selling price. But keep in mind the duty did not go down like in June. Although the government took out some taxes the total percentage of duty remains almost the same (1% +/-) with the change in the duty calculation structure and increase in Excise.

What will show a significant reduction in prices will be on the double cabs. Duty came down to about 110% from 150%+ and you also do get to pay the 12% VAT.

[evergreen]

Machang unreg car prices are going down alright but I dont see the second hand car market going down the way it is. I see a lot of people asking for way too much on their vehicles. Since when did an AE110 go for 2.0mil +?? or for that matter a Sunny B15 which was around 1.5ml figure has gone up to 1.8mil. Unreg cars will become more cheaper in my opinion due to the duty reduction unless our car dealers go screw up at the auctions. Reason being the reduction in VAT from 20% to 12% on selling price. But keep in mind the duty did not go down like in June. Although the government took out some taxes the total percentage of duty remains almost the same (1% +/-) with the change in the duty calculation structure and increase in Excise.

What will show a significant reduction in prices will be on the double cabs. Duty came down to about 110% from 150%+ and you also do get to pay the 12% VAT.

this is simply becoz still people do not have a decent unregistered vehicle at the price braket of 1.5 to 2.5 million. and fairly a large percentage of the car buying crowd has a budget in this range. thats why people are selling fb 15s at 1.8 million and 110 over 2 million which has never been the case in history. mind you , most of these cars have done nearly 200k milage and in crappy condition.

[hyacc]

Brand new 2010 allion 260 'G' from 6.3mil+

2007+ allions from 4.7mil+

2007+ Axios from 3.7mil+

Hiace DX/Super GL gone down by 5 lakhs.

Hilux Smart cabs now taxed as double cabs. Now 2010 model smart cabs are registerd as 'Brand New' instead of 'Reconditioned'.

2.5ltr version smart cab gone up to 4.8mil, 3ltr version 5mil+

Brand new vigo double cab with canopy - 7million

[heavyD]

this is simply becoz still people do not have a decent unregistered vehicle at the price braket of 1.5 to 2.5 million. and fairly a large percentage of the car buying crowd has a budget in this range. thats why people are selling fb 15s at 1.8 million and 110 over 2 million which has never been the case in history. mind you , most of these cars have done nearly 200k milage and in crappy condition.

Yah, that makes sense. People actually wanna earn a buck after using a car for several years! It's not like they get any newer with age! I mean, what?

[DevakaC]

Brand new 2010 allion 260 'G' from 6.3mil+

2007+ allions from 4.7mil+

2007+ Axios from 3.7mil+

Hiace DX/Super GL gone down by 5 lakhs.

Hilux Smart cabs now taxed as double cabs. Now 2010 model smart cabs are registerd as 'Brand New' instead of 'Reconditioned'.

2.5ltr version smart cab gone up to 4.8mil, 3ltr version 5mil+

Brand new vigo double cab with canopy - 7million

I believe the market for the Vigo would die out eventually. The reason they came out in numbers were A. It was in a lower tax bracket - same as lorries and B. It was a good option for a person with 3.5 million in hand who wanted a diesel vehicle which had the uses of a double cab, and B/new too. But now since the market if flooded with Allions, Beltas, Axios and what not people dont even give a second look at the Vigos. Atleast thats my opinion. I have also heard the resale value is not as great not being able to hold up value compared to its predecessor LN 106, 107 or 166.

If the double cab market comes to the 6 million ranges I think that would be great, 7 million is still high IMO with or without Canopy.

Any ideas about prices for the X-trail diesel, Sportage diesel etc?

[isurujosh]

Machang unreg car prices are going down alright but I dont see the second hand car market going down the way it is. I see a lot of people asking for way too much on their vehicles. Since when did an AE110 go for 2.0mil +?? or for that matter a Sunny B15 which was around 1.5ml figure has gone up to 1.8mil. Unreg cars will become more cheaper in my opinion due to the duty reduction unless our car dealers go screw up at the auctions. Reason being the reduction in VAT from 20% to 12% on selling price. But keep in mind the duty did not go down like in June. Although the government took out some taxes the total percentage of duty remains almost the same (1% +/-) with the change in the duty calculation structure and increase in Excise.

What will show a significant reduction in prices will be on the double cabs. Duty came down to about 110% from 150%+ and you also do get to pay the 12% VAT.

yes indeed the 2nd hand market hasn't come down and my post is very specific about unreg cars. i think the reason why the most popular 1.5-2.5m 2nd hand market has not come down is coz of following 2 reasons.

1) not many 2nd hand decent jap sedans of this age (registered between 2004 late and 2009) are there due to high taxes at the time.

2) this market segment is very stubborn and mostly demands 10 year jap sedans some times in bad condition over newer or smaller or non-mainstream makes.

[isurujosh]

Machang unreg car prices are going down alright but I dont see the second hand car market going down the way it is. I see a lot of people asking for way too much on their vehicles. Since when did an AE110 go for 2.0mil +?? or for that matter a Sunny B15 which was around 1.5ml figure has gone up to 1.8mil. Unreg cars will become more cheaper in my opinion due to the duty reduction unless our car dealers go screw up at the auctions. Reason being the reduction in VAT from 20% to 12% on selling price. But keep in mind the duty did not go down like in June. Although the government took out some taxes the total percentage of duty remains almost the same (1% +/-) with the change in the duty calculation structure and increase in Excise.

What will show a significant reduction in prices will be on the double cabs. Duty came down to about 110% from 150%+ and you also do get to pay the 12% VAT.

yes indeed the 2nd hand market hasn't come down and my post is very specific about unreg cars. i think the reason why the most popular 1.5-2.5m 2nd hand market has not come down is coz of following 2 reasons.

1) not many 2nd hand decent jap sedans of this age (registered between 2004 late and 2009) are there due to high taxes at the time.

2) this market segment is very stubborn and mostly demands 10 year jap sedans some times in bad condition over newer or smaller or non-mainstream makes.

[Gummybr]

yes indeed the 2nd hand market hasn't come down and my post is very specific about unreg cars. i think the reason why the most popular 1.5-2.5m 2nd hand market has not come down is coz of following 2 reasons.

1) not many 2nd hand decent jap sedans of this age (registered between 2004 late and 2009) are there due to high taxes at the time.

2) this market segment is very stubborn and mostly demands 10 year jap sedans some times in bad condition over newer or smaller or non-mainstream makes.

Agreed, but I think the market will settle down in the future. Also another reason for drop in unreg car prices is the fact that they all went in and bought down cars and flooded the market with them and now they cant seem to sell what they bought down as the market is settling down again. So they will have to pass on the cars at a lower value tp try sell off the stocks.

BTW a small clarification on the D/Cab duty; as of yesterday they have increased the total duty percentage back to 155% with an increase in Excise duty. So you will only get a VAT benefit. On small cars the reduction due to VAT will be low and on high priced cars it will be more.

[isurujosh]

Agreed, but I think the market will settle down in the future. Also another reason for drop in unreg car prices is the fact that they all went in and bought down cars and flooded the market with them and now they cant seem to sell what they bought down as the market is settling down again. So they will have to pass on the cars at a lower value tp try sell off the stocks.

BTW a small clarification on the D/Cab duty; as of yesterday they have increased the total duty percentage back to 155% with an increase in Excise duty. So you will only get a VAT benefit. On small cars the reduction due to VAT will be low and on high priced cars it will be more.

is this the excise duty increase in line with budget speech? what will be the overall effect of taxes on the popular 1.5-2L market?

[Gummybr]

is this the excise duty increase in line with budget speech? what will be the overall effect of taxes on the popular 1.5-2L market?

Not sure if its in line with budget speech, but the customs did put up a pdf doc on their website from Finance Ministry based on which the calculations are done. Short answer to your question on overall effect of taxes on vehicles, it will remain the same; but you might see a 1-2% difference, so it really does not change a lot of things.

[isurujosh]

Not sure if its in line with budget speech, but the customs did put up a pdf doc on their website from Finance Ministry based on which the calculations are done. Short answer to your question on overall effect of taxes on vehicles, it will remain the same; but you might see a 1-2% difference, so it really does not change a lot of things.

looks like the intention behind the tax revamp was to simplify the taxes not reduce it.

[xXx]

Agreed, but I think the market will settle down in the future. Also another reason for drop in unreg car prices is the fact that they all went in and bought down cars and flooded the market with them and now they cant seem to sell what they bought down as the market is settling down again. So they will have to pass on the cars at a lower value tp try sell off the stocks.

BTW a small clarification on the D/Cab duty; as of yesterday they have increased the total duty percentage back to 155% with an increase in Excise duty. So you will only get a VAT benefit. On small cars the reduction due to VAT will be low and on high priced cars it will be more.

Tax systems is in a real mess right now. There are way too many changers coming into effect at different time intervals. Two weeks after imposing the new duty structure, it was revised again for double cabs and diesel vans on Thursday (Hyacc good luck finding a Hiace for 5 lacks cheaper in couple of weeks). There are speculations that there could be another revision closer to the Singhala new year to hoodwink the public. VAT reduction is set to kick in on 1st of January. Is it that hard to formulate a long term policy and stick to it???? This is why importers are forced to expand their profit margins as they are unable to stick to a long term sales strategy. With the amount of money they have to invest to import handful of cars a minor percentile change can turn in to quite a sizable chunk.

On top of market been flooded with cars another reason for the drop in prices is due to market speculation. i.e. lot of potential buyers wanted to wait till the budget and now to take advantage of the reduced VAT they will wait till next year. So there is/will be a 2-3 month period of virtually no sales. So importers with tight cash flows are desperate for a sale to pay for their next batch of imports.

is this the excise duty increase in line with budget speech? what will be the overall effect of taxes on the popular 1.5-2L market?

There was no mention about the excise duty in the budget. Guess some ingenious policy maker had an epiphany or he knocked his head somewhere.