ECONOMYNEXT – Sri Lanka’s overheated second-hand car market is set to cool rapidly industry analysts said, with advertised brand new prices for vans being sharply below asking prices for used vehicles after import controls were partially relaxed for tourism.
Toyota Lanka took out advertisements on Sunday to sell the new HiAce passenger van, which is permitted for use in the tourism sector, where the government would allow 750 vans to be imported.
The move startled dealers who have been offering their used vans at astronomical prices.
The price of a 13-seater automatic HiAce was listed at an all-inclusive price of 16 million rupees, nearly half the 32.5 million rupees asking price of a five-year-old HiAce that had travelled 48,000 kilometres, advertised in recent days.
HiAce vans of various ages are still advertised around 14 to 23 million rupees in online market places.
A salesman at Toyota said the price of a brand-new van included approximately 7.0 million rupees in taxes.
These vans could be imported by individuals registered with the Tourist Board.
There are also other factors that may cool prices, industry analysts say.
Any further appreciation of the Sri Lankan rupee could further reduce the import prices of these vehicles, most of which are imported from Japan.
The Sri Lankan rupee has appreciated by 20 percent against the yen this year alone, according to the Central Bank of Sri Lanka.
Speculation that the government may relax the ban on vehicle imports in the run-up to the presidential elections, which must be held sometime between September 15 and October 15, is also making some potential buyers take a wait and see approach. (Colombo/April28/2024)
