Car dealers struggling

cyprusairsoft



Joined: 22/06/2009
Posts: 2066

Message Posted:
26/01/2012 13:24

recent press reports about dealerships closing and a glut of vehicles blamed on goverment/hmc for taxes import duty etc, even haci ali has had to sell off his stock.



if cars were not so over inflated in price especially second hand market im sure more would sell.

most dealers are not prepared to take a cut in profits.

also brings up the point that is there enough room in trnc for more cars roads seem busy enough at peak times now.

yrret


Joined: 17/08/2010
Posts: 761

Message Posted:
26/01/2012 14:02

Funny you mention that, I drove past Ozmanlinzade a while ago, use to be a huge dealer, and even spent a fortune covering his lot, and it was empty, I assumed he had moved, but has he gone?



Right what you say about taxes etc.

If taxes were less, so prices lower, and road tax less, I would buy a newer biger car, and happily pay for the extra fuel, so the gov gets more in taxes in the long run in fuel taxes. With taxes (and road tax) as they arem happy to drive a very small, economic car.



I guess it's the old business question "do you want a thousand pounds every time a Bentley is sold, or a penny every time a loaf of bread is sold" Gov here happy to try for the occasional big hit.

cyprusairsoft



Joined: 22/06/2009
Posts: 2066

Message Posted:
27/01/2012 11:18

its a shame iknow its not just the car business that suffers the goverment makes it hard for all people to earn a living in business

licence for this tax for that paper shuffling all the time but with cost each time.

small business and large need help and support not taxes and red tape

i think ozmanlinzade has finished if haci ali is then something is wrong

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
27/01/2012 12:58

I agree with import taxes being ott,but not on 'dealers' struggling!



Just to give yourself an idea,take your own vehicle to any dealer and ask them how much they'd offer you to sell it to them.



Bet it's not much more then half of what it's worth.

So,my own conclusion is that,if the 'dealers',in this case,were to be working to make a living rather then wanting to be a 50/50 partner to every car owner I'd think they'll sell more and perhaps 'struggle' less.

ataturk


Joined: 09/09/2008
Posts: 712

Message Posted:
27/01/2012 19:13

Osmanlizade has actually bought Haci Ali and moved to a bigger premises. Not sure about dealerships struggling as we went to buy a new jeep and you cannot haggle with these people not a kurus. The jeep we looked at was 10000 euros cheaper on the south so someone is making a lot of money.



I spoke to a friend who brings in cars for the dealers and he says that prestige cars are selling like hot cakes

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
27/01/2012 19:22

The sure know how to shoot themselves in the foot... the price of new cars is of course why the price of secondhand ones is so high. The dealers are finding it tough to sell new cars - upshot is the car population will age leading to many more problems caused by lack of road-worthiness.

Smity



Joined: 14/09/2009
Posts: 826

Message Posted:
27/01/2012 20:44

I work in construction and when times are bad like at present we have to reduce costs minimise our outgoings and this of course cuts our profits

Bu here they press then self destruct button and increase prices

Admittedly the government tax cars to the limit, but they recent strikes show why

Go figure

cyprusairsoft



Joined: 22/06/2009
Posts: 2066

Message Posted:
27/01/2012 22:21

smityspot on

yrret


Joined: 17/08/2010
Posts: 761

Message Posted:
28/01/2012 09:03

Exactly, as I have said many times before there is no business ability, and the business philosophy of 'half of something is better than all of nothing' will never be understood.

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
28/01/2012 09:36

If the TRNC government halved the import duty on new cars bought from TRNC dealers they would draw in so much cash they wouldn't know what to do with it all.... As you say Terry, 50% of something is always better than 100% of nothing. Not only that but a lot of the jalopies currently gracing the roads would get replaced with cars with brakes, tyre-tread and adequate lights.

yrret


Joined: 17/08/2010
Posts: 761

Message Posted:
28/01/2012 09:46

Unfortunately Gav, if the duty was say halved, the business mentality of the average Cypriot car dealer would then be "oh! so more profit for me" as they woudln't reduce the prices proportionaltely, they would just try to cash in on the windfall.

waddo


Joined: 29/11/2008
Posts: 1966

Message Posted:
28/01/2012 09:46

Did anyone else notice the bit in Cyprus Today (Wednesday) on the struggling car dealers that went - "with a change in the laws governing rental cars, introducing a new rule allowing hire companies to only rent out vehicles up to two years old" - now there is a way forward, not! Looking deeper into the reason behind it may just point out that the government would make more money out of this change than any other. New cars (more tax) every two years for all car hire companies! Less old rental wrecks on the road, more tax off rented vehicles, more "younger" used cars on the market, more tax from the cost of change over from Z plate to normal plate - its a money making game for sure.



On the other side of the coin - how many rental companies will go to the wall over this change? Work out the cost of a new car (£15K) paid for over two years (£8K a year) now rent it out at £25.00 a day for 25 weeks = £4.5K, take off the cost of tax, service etc - how can the rental company survive

yrret


Joined: 17/08/2010
Posts: 761

Message Posted:
28/01/2012 10:10

Mick,

I am sure that as with the usual reactive unthought through (majority) of things, this will lead to less income for the Gov, after all, why do they kep making changes, because their income is continually dropping and collectively they undertsand nothing of why.

All this would lead to is the majority of rental places closing, mind you if you closed half would anyone notice there are so many, the ones that survive would hike rates to cover the extra costs of car turnover.

The rental co's would also become dealers to shift an ever changing stock, forcing other dealers out of business, and more tourists would go elsewhere as the car rental would be a dissproportionate cost of a holiday.

Many would also use the dolmus to save money.



I am sure most of these things are thought up by people as bright as the ones that cane up with the short lived suggest 'only blood relatives can pick peole up at Ercan



Something/someone new to laugh at every day

breezyboy


Joined: 14/05/2007
Posts: 1179

Message Posted:
30/01/2012 12:24

Do rental companies pay full import duty?

Taxo drivers do not. They pay 10% and can se3ll on after ( I Think ) 3 years at going rate.

So if rental compnies can do the same and sell on after 2 years then their profit on the resale would be worth having.



earlier poater says less rental wrecks on the road - surely there would be more as the companies have to sell them on.

Jonesy299


Joined: 07/02/2009
Posts: 367

Message Posted:
30/01/2012 13:53

Anybody know what the latest % is on importing cars for private use (not for me but somebody has asked me). Hyundai Santa Fe (less than 3 years old). I warned him it could be 50%+ of current book value...