Japan used car

Importers of reconditioned vehicles are now in a frenzy to import vehicles from Japan apprehending a hike in duty, possible tougher import policy in the budget to be announced today (Monday) and stiff competition with the brand new vehicle importers.

A specialised ship named MV Lilac Ace from Japan with a consignment of 1988 vehicles, mostly car and micro, worth around Tk 200 crore is due to arrive Chittagong port this afternoon, sources said.

They said this will be the largest-ever single consignment of imported reconditioned vehicles in Bangladesh, clearly showing a sharp growth in recent time in the import of such vehicles.

Port sources said the capacity of four sheds is around 2,800 while there are currently 2,292 vehicles in those sheds and it would not be possible to provide space for all the 1,988 vehicles coming on Monday.

“Although prices for vehicle increased significantly in recent years, the demand for it hasn’t affected at all,” said Abdul Hamid Sharif, secretary general of Bangladesh Reconditioned Vehicle Importers and Dealers Association (Barvida). READ MORE…

Government’s new motor-tax regime could drive up auto prices on small cars, stoke competition, and put used-car dealers out of business, according to chief spokesman Kenneth Shaw.

Shaw, the president of the Jamaica Used Car Dealers Association (JUCDA), went as far Monday to predict that the sector could fold.

Shaw later told Wednesday Business that the used-car sector’s profit margins are about three to four per cent, and that JUCDA, based on its assessment of the new tax structure, anticipates a total erosion of that cushion.

“If this policy is allowed to continue as it’s announced, then you won’t have a used-car sector anymore,” he said, speaking Monday as invited guest at the Rotary Club of St Andrew North’s weekly dinner meeting. READ MORE…

Blood on the showroom floor. It’s a buyer’s market as car sales slump. Plummeting car sales have led to a slump in prices.

Comparing March 2008 to March 2007, sales from the public to dealers are down nearly 21%, private sales are down by over 7%, while sales from dealers to the public are down nearly 20%. Sales from dealer to dealer have fallen nearly 28%, while registrations of used imports of have dropped nearly 18%.

Clive Matthew-Wilson, editor of the car buyer’s Dog & Lemon Guide, says that a combination of factors has hit vehicle sales.

“First, the economy is in decline, which has made buyers suddenly cautious. Second, the new vehicles on sale were ordered during boomtimes, so there’s now an oversupply. Third, although overall imports of Japanese secondhand vehicles are falling, a few dealers brought in vast numbers of vehicles in anticipation of tighter government controls on vehicle emissions. There are now too many vehicles chasing too few buyers.” READM MORE…

Questionable practices, including under-invoicing, by some used car dealers are primarily responsible for the major decline in the “reconditioned” car market in Barbados.

That was the response of a number of the island’s established automobile dealers to charges last week by used car sellers that the $4 000 environmental levy imposed by the last Government on each imported used car was a result of lobbying by new car dealers who wanted to drive them out of business.

Roger Hill, managing director of Nassco Limited, agents of Toyota, said he knew of no discussion between new car dealers and Government on the subject, while Simpson Motors general manager Debbie Simpson said their discussions with authorities over the years related to making new cars more affordable to consumers. READ MORE…

SEVERAL USED car dealers, who once imported the popular reconditioned vehicles, have closed their car dealerships.

And Barbadians shopping for such vehicles are finding them more and more difficult to come by.

SUNDAY SUN investigations have revealed that over the last two years the once vibrant reconditioned market has almost come to a screeching halt.

The reason is, according to the dealers, that they have been unable to continue importing used vehicles from Japan due to Government’s imposed environmental levy which was increased over the years from $1 200 to $2 000 and then to $4 000 last July.

This latest increase effectively placed an additional cost of $7 000 on the price of a used vehicle when added to the excise and Value Added Tax.

Dealers said business had become unprofitable and non-competitive since it was unrealistic to pass on these high costs to consumers. READ MORE…

Japanese models have taken the top three places at the Used Car of the Year 2008 awards.

The Toyota Avensis Verso has been names the UK’s best used car choice beating the Nissan X-Trail and Honda Jazz in the poll conducted by Warranty Direct.

Reliability proved one of the deciding factors in the voting, conducted by UK motoring journalists. Japanese and German manufacturers did no harm to their reputations for building reliable cars with strong showings in the final results. Honda did particularly well with the highest number of models voted for of all the manufacturers, while BMW and Audi were also well represented with several entries into top three shortlists. READ MORE…

Tokyo, Apr 9, 2008 (Jiji Press) - Toyota Motor Corp. <7203> on Wednesday notified the transport ministry that it is recalling over 630,000 minivans due to faulty fuel tanks and engines.

The recall affects the leading Japanese automaker’s Noah and Voxy minivans.

According to the company, fuel tanks were not installed properly for 628,239 units produced between November 2001 and May 2007. Cracks may appear and oil may leak as a result, Toyota said.

Toyota also said that the engines of 2,623 units manufactured between June and November last year may stall when being driven at high speeds due to a flaw in their computer programs.

By Jiji Press, © Jiji Press

Tokyo, Apr 10, 2008 (Jiji Press) - Mazda Motor Corp. <7261> began recalling the Demio and two other passenger cars on Thursday due to computer program defects in their engine control systems.

Subject to the recall are 170,300 units made between March 2005 and October 2007, according to a report filed with the transport ministry.

Due to the defects, braking distances may be longer than normal, the report said.

By Jiji Press, © Jiji Press

Tokyo, Apr 10, 2008 (Jiji Press) - Sales of used vehicles in Japan, excluding minivehicles, fell 8.3 pct from the previous year to 4,473,269 units in fiscal 2007, hitting the lowest level since fiscal 1986, industry data showed Thursday.

Used auto sales dropped for the second straight year, according to the data released by the Japan Automobile Dealers Association.

The poor performance came as the number of good-quality trade-in vehicles available on the used auto market decreased in line with sluggish sales of new vehicles, the industry group said.

Increased exports to Russia and other emerging markets were also behind the fall in domestic used auto sales, it said.

Of the total, used passenger car sales fell 7.4 pct to 3,838,336 units, slipping below the four-million mark for the first time in 19 years. Truck sales fell 13.5 pct to 507,479 units, the lowest level since the JADA started compiling the used auto sales data in 1978.

In March alone, overall used automobile sales fell 10.6 pct from a year earlier to 550,633 units, the association said.

By Jiji Press, © Jiji Press

For most North Americans, Japan symbolizes a nation of reliable automobiles and Hello Kitty merchandise at every turn. However, underlying a society of politeness and extreme social restraint is a sex industry that is inexplicably kinky.

According to economists, Japan’s appetite for kink is the second-largest industry, accounting for 2.37 trillion yen or US$20 billion annually in commercial sex services, second only to the automobile industry.

The world of fuzkou (the sex industry) delves into a wide array of kink which generally caters to men. Themed bars and clubs can provide a surreal experience of many varieties, including scenes such as a classroom with girls dressed as schoolgirls, or a replica of a train car that is packed with girls who can be groped. The girls wear short skirts, and the men can look up them.

Nyotaimori is another very popular trend. Also known as “body sushi,” Nyotaimori is the practice of eating sushi off a naked woman’s body that acts as the platter. All body hair is removed and the woman must train beforehand to be able to lie still for hours and be able to withstand cold food. Another variation of the practice includes bondage.

Probably one of the most popular fetishes in Japan is known as Burusera. “Buru” means bloomers and “sera” mean seller. Burusera is the practice of selling used panties. There are Burusera shops that sell the panties accompanied by pictures of the girls that wore them. The price ranges anywhere from 5000 to 10,000 yen, or US$49 to $90 for one pair. READ MORE…

Rising demand in the emerging markets of Europe and Asia, com-bined with fluctuations in the currency markets, is driving up the price of pre-owned vehicles in Japan and having a direct impact on the pocket of Jamaican consumers who are in the market for second-hand cars, dealers here say.

In recent months, the price of used cars are risen by as much as 20 per cent, they say.

“We have a lot of emerging markets and they have been taking the lion’s share (of the export of pre-owned cars from Japan) and are paying premium prices for the high-end vehicles,” says Kenneth Shaw, the president of the Used Car Dealers Association of Jamaica.

Markets such as Russia and Dubai, said Shaw, are particularly active.

“They go for the three- or four- year-old cars and are competing directly with us,” says Shaw. READ MORE…

Japanese cars swept the board in a survey of the most reliable used cars on Friday, taking nine out of the top 10 places.

The Toyota Corolla from 2000 to 2002, built in Derbyshire, topped the table compiled by What Car? magazine and insurer Warranty Direct.

Confirming the Japanese reputation for reliability, researchers found just three faults per 100 Corollas, compared to five per 100 for the second-placed Honda CR-V.

“The data proves that expensive doesn’t necessarily mean reliable,” said Warranty Direct’s Managing Director Duncan McClure Fisher.

In joint third place were the Honda HR-V (1999-2005) and the Toyota Celica (2000-2006), both with six faults per 100.

Honda’s sporty S2000 model ranked fifth, while the only non-Japanese car in the top 10 was the BMW 3 Series Compact (1994-2001) in joint sixth.

At the other end of the table, Alfa Romeo’s GTV (1996-2003) was named as the most unreliable car, with 97 faults per 100. READ MORE…

Govt. needs to stand up to used car importers on emissions

The call from the Independent Motor Vehicle Dealers’ Association for its members to fund a $300,000+ advertising and Public Relations campaign opposing the Government’s proposals to clean up exhaust emissions is blatant irresponsibility, according to the Motor Industry Association.

January 1 was to have marked the first step in a programme which would see imported used vehicles having to meet age-related exhaust emission standards applying in the Japanese market, but it’s understood that Ministers have buckled under pressure from the used importers and implementation of the draft plan’s original timetable has been compromised, with petrol cars to be given a twelve month stay of execution. “We just hope that Ministers will not now give in and continue to allow the import of dirty old diesel vehicles,” said MIA CEO Perry Kerr. READ MORE…

Sri Lanka’s motor trade is lobbying the government to discourage used car imports and change import duty to make brand new vehicles more affordable.

The Ceylon Motor Traders’ Association (CMTA) says the government has still not responded to repeated proposals to restructure vehicle tax regulations and introduce a method of obtaining motor traders’ opinion on taxes.

“We have given budget proposals to the treasury on conditional taxes and curbing reconditioned imports,” Tilak Gunasekera vice chairman CMTA told LBO.

“Unfortunately nothing seems to have been addressed so far.”

The association is still lobbying against importing used vehicles from Japan saying the vehicles are scrapped for a reason and they should not be imported to Sri Lanka.

This is in response to concern that Sri Lanka is becoming a dumping ground for used vehicles which cause pollution and can be unroadworthy. READ MORE…

Major advertising campaigns have begun in Hawke’s Bay and Christchurch as car dealers speak out about the Government’s proposed vehicle exhaust emissions rule.

The new legislation, which could be in place early next year, would restrict the importation of Japanese used vehicles to those built from 2000 and diesels would be restricted to those built from 2003.

An advert placed in Hawke’s Bay Today said the exhaust emission rule would ban up to 90 per cent of petrol imports and 96 per cent of diesel imports.

A similar ad had been placed in Christchurch papers recently. READ MORE…

Mazda6 has overcome the challenge of 48 short-listed rivals to claim the What Car? ‘Used Car of the Year 2007’ crown in the popular monthly publication’s annual awards. For the What Car? December issue, an experienced panel of eight judges, who know the used car market inside out, scrutinised the merits of the 48 cars in eight different categories.

After much deliberation, the 2003 Mazda6 2-litre TS five-door hatchback emerged as a double-winner – overall winner of the 2007 used car title and first in the ‘Family Cars’ category.

Commenting on Mazda’s overall victory, What Car? Used Car Editor, Matt Sanger said, “The Mazda6 was the clear winner of our ‘Used Car of the Year’ title. There were more votes cast for the Mazda6 than for all the other category winners put together. Its overall package of value for money, reliability, desirability and fine handling, proved too much for the competition.” READ MORE…

The Yemeni Automotive market has witnessed several transformations during the last decade, mainly because of globalization. There has been several trends which the market has witnessed, first from the entry of large numbers of used cars from Europe and other parts of the world to be sold in Yemen as pre-certified cars, to the arrival of several brands of Chinese cars into the country, to the more recent popularity of importing one or two-year old cars from neighboring countries, to the extent that Saudi Arabia was the largest exporter of Cars to Yemen in 2006. Yemen Times surveyed the local market and spoken to several dealers, businessmen, and customers about their choices and the options in the local market.

Hussain Naser, a used car businessman, stated that there is only one brand which most buyers have confidence in, i.e. Toyota. He said that Toyota Vehicles have all the factors that people look for within a car, mainly quality, power, good resale value, availability of spare parts, and serviceable in most parts of the country. He said that in buying a Toyota one cannot go wrong. READ MORE…

Many more global auto majors are seeking space in India’s used car market, dominated by Maruti’s TrueValue programme. Japanese auto major Toyota is launching its used car programme called Toyota You Trust this week. Honda’s Auto Terrace, Hyundai’s Hyundai Advantage and Ford’s Ford Assured are also focusing on the used-car business.

Auto majors not only increase their market penetration but also sell the used cars at a profit, say sources. World’s largest auto manufacturer, Toyota, is now making its foray into the used-car business through Toyota You Trust. This venture is expected to be rolled out at leading dealerships across the country this week, sources said. The company has identified four to five dealers who will invest and set up operations for used cars.

According to dealer sources, this initiative is an attempt by the car maker to encourage exchange offers among customers. “Exchange offers are the primary reason why leading auto majors enter the used-car market,” said an auto analyst. Another Japanese auto major, Honda, has formed a new team to focus on its used-car programme called Auto Terrace. While the company’s used-car programme was started in a small way, we plan to increase focus, said Jnaneswar Sen, Sr general manager, marketing, Honda Siel India. READ MORE…

hough 25,000 state workers are eligible to buy duty-slashed vehicles, less than half of those entitled have so far applied for a car, officials said.

Long waiting lists at agents for popular brands as well as the high cost of new cars is said to be deterring public servants from cashing in on the bonanza.

Though applications for tax slashed vehicles were rushing in by the hundreds in the early days, officials say it has now reduced to a trickle, with only 12,000 having submitted papers so far.

Some officials have asked to buy re-conditioned (vehicles used abroad for less than three years and imported to Sri Lanka) Japanese cars instead of brand new ones, but the request had been turned down by authorities.

Meanwhile agents for popular Japanese brands like Toyota, Nissan and Mitsubishi are unable to bring down cars quickly enough, resulting in long waiting lists.

Ordinary Sri Lankan citizens outside the public service have to pay more than twice the price, paid by a state worker to acquire a car due to the high tax burden. READ MORE…

Used automobile sales in Japan in April-September fell 10 pct from the same period a year earlier to 2,158,605 units, the lowest level in 20 years, the Japan Automobile Dealers Association said Thursday.

The sales drop reflected sluggish new vehicle sales, JADA officials said, adding that cars have become less attractive particularly for young consumers.

In the first six months of fiscal 2008, passenger car sales dropped 8.7 pct to 1,837,154 units to mark a second consecutive fall. Truck sales showed a steeper decline of 16.7 pct to an all-time low of 256,931 units.

In September alone, used vehicle sales decreased 17.1 pct year on year to 324,223 units, falling below new auto sales, which totaled 330,103 units in the month, for the first time in 10 years.

Buying a car is a huge investment, whether you are buying a new or used car. By looking at used cars, you will see that this can save you a lot of money while you still get a great car. But before buying a used car, you should do a little bit of research to make sure that you are truly getting your money worth. Otherwise, you could just end up stuck with someone else problem.

Before you start doing any research, make sure that you know what you want out of your used car. This includes knowing how many miles you are willing to have on it, what type of vehicle you are looking to buy, and the features that you will want on your used car. After you have determined these factors, it is a good idea to look on used car websites. This can not only provide you with what a good price is for the car you are looking for but can also be a great place to purchase your car once you have decided on one you like. While you are looking online, beware of a price that seems too good to be true. It probably is and a low sales price could mean that the car is not in good condition and will end up costing you much more money later on. READ MORE…

Japanese automaker Toyota has been breaking records for a while now. It is set to become the largest automaker in the world by next year. On its way to being the largest company of its kind, Toyota has broken sales records and has celebrated milestone after milestone. Recently, the Japanese automaker celebrated yet another milestone as they have sold 2 million pre-owned Toyota vehicles in the United States since 1996.

The buyer of the 2 millionth Toyota Certified Used Vehicle is Mr. Brian Kabat of Bellevue, Washington. The two millionth Toyota Certified Used Vehicle sold to Mr. Kabat was a 2004 Toyota Sienna. Initially, Mr. Kabat was apprehensive about buying the vehicle because of the added cost of its luxury features. His grandchildren though made it easy for him to decide as they expressed their liking for the Sienna’s features.

Toyota celebrates the sale of the 2,000,000th used vehicle by reimbursing Mr. Kabat the $36,648 that he paid for the vehicle. Aside from that, Toyota will also be donating the same amount to Bellevue’s Youth Eastside Service (or YES) agency. The Japanese automaker has also earmarked $5,000 as donation to Bellevue’s Newport High School Band. All these will be handed out in a ceremony that will be held at the Bellevue dealership where the 2,000,000th used Toyota was sold earlier this year to Mr. Kabat. READ MORE…

The Philippines government has assured local car makers that the ban on the entry of used vehicles will stay when the Japan-Philippines Economic Partnership Agreement takes effect.

Trade Undersecretary Elmer Hernandez told reporters he had discussed with the members of the Chamber of Automotive Manufacturers of the Philippines Inc. their concerns on JPEPA, especially a provision outlining the cooperation of the two countries in relation to exports.

“I have met with Campi, they want assurance from government that the prohibition [on used vehicles] would continue and that the provision is a safety net rather than an opening. It’s a protection, either way,” said Hernandez.

Japan is the biggest source of converted used vehicles that are brought into the country.

Hernandez said the Olongapo Regional Trial Court and the Court of Appeals had ruled against the constitutionality of Executive Order 156, which banned the entry of used vehicles into the country, at the time when government was negotiating with Tokyo on the auto sector provision under the JPEPA.

“Article 27 is the protection of the automotive industry. Our concern at that time, if we lost our case before the Supreme Court, what do we do about used vehicles? If we win, what do we do? So we put that article as protection,” said Hernandez. He said Article 27 served as a protection if the courts ruled against the constitutionality of EO 156.

The Supreme Court has since upheld the constitutionality of EO 156. The second motion for reconsideration filed by importers is pending before the high court. Hernandez also cited a provision in JPEPA respecting all domestic laws of both the Philippines and Japan. READ MORE…

Used car buying for first time buyers is all about reliability. Forget the looks; that sheen will soon go dull if your car refuses to start or plagues you with ongoing reliability problems.

The best source of information on reliability is the annual J.D. Power and Associates report, which originated in the US and is now available in the UK in association with What Car? Magazine. The reports from the J.D. Power surveys are widely regarded and reflect the true reliability features of the various makes and models of cars. The reports produce a Car Customer Satisfaction Index (CSI) report and it’s worth paying attention to its contents, which are available in the Internet.

In the current report for 2007, the Toyota Prius ties with the Lexus IS for the top ranking among models included in the study. Following the Prius and Lexus IS, the top ten model rankings are dominated by Japanese models from Toyota, Honda and Lexus, although Skoda makes an excellent showing with the Octavia and Fabia ranking fifth and seventh overall. READ MORE…

Bandar Seri Begawan - Used car dealers are glad that the free-trade deal between Brunei Darussalam and Japan will lead to cheaper car imports, but at the same time they are apprehensive this may force them to lose their markup during the months when the pact takes effect.

The two trading partners on Monday signed a free-trade agreement which is aimed at cutting tariffs or import duties and ensuring a stable supply of natural gas to Japan.

Brunei will abolish its 20 per cent tariff imposed on automobiles and auto parts from Japan within three years of the implementation of the agreement. With most of the general public looking forward to seeing the tariff eliminated, there are some who remain uncertain, such as second hand car dealers.

“Currently we aren’t certain when the exact date the tariff will be eliminated and depending on how much cars are left in the stock yard or how much we purchase the cars for, in the end the price of our existing Japanese cars will have to be reduced,” a dealer said. “It’s bitter-sweet in a way that the next shipment after the announcement will also be cheaper. But right now it’s uncertain what will happen.” READ MORE…

The used-car market is expected to see the foray of three global players in the coming months. Japan’s largest dealer of used cars and vehicles Gulliver International, UK-based Manheim and a Dubai-based operator are expected to set up local operations.

All the three players are in advanced stages of talks to rope in a local partner, sources said. Manheim started operations in China last year and is known for its wholesale auto auctions. The unnamed Dubai-based player is based out of Bangalore and is expected to announce its soft launch by the end of this month.

Gulliver is visiting market to firm up its India plans. With south being the most organised used-car market, most of the global players are expected set up shops in this market first, sources added “The Dubai-based player plans to sell and refurbish used-cars along with warranty,” a source said. The global players are also planning to import used cars as they feel India has a huge market for such vehicles. According to the Society of Automobile Manufacturers in India (SIAM), the used car market stands at 1 million units. The auto industry expects this business to grow as fast as the passenger car segment. The market in India is unorganised, with the organised players accounting for just 20-25%. In developed markets like the US, organised players account for nearly 90% of the used-car market sales. READ MORE…

IMPORTERS of new cars say they are being discriminated against by the current registration system, giving second-hand dealers an unfair edge.

Late last year, the car tax regime was altered so costs are now calculated based on pollution emissions. For new cars, all information is provided by their manufacturers. However, for used cars coming from countries such as Japan, this information is not provided.

Importers of new cars must comply with a string of EU requirements to have their automobiles registered. However, they claim second-hand dealers are exempt from these standards.
For example, it is not obligatory for used cars to pass airbags checks or pollution emissions controls before they are registered.

Having these checks entails higher costs for importers, which in turn translates into higher prices in the consumer product.

Second-hand dealers, though, do not incur these additional costs, and thus can sell at lower prices, making them more competitive.

New car dealers complain of double standards.

For example, an M1 class car – a saloon with a capacity for eight persons – and new motorbikes must be accompanied by a certificate of compliance proving that the vehicle complies with all relevant EU directives. READ MORE…

PRICES of imported vehicles are likely to shoot up following a decision by the Government requiring importers to pay excise duty in foreign currency.

According to Statutory Instrument 80A of 2007 contained in last Thursday’s Extraordinary Government Gazette, the Minister of Finance announced that with effect from April 5 2007, importers of cars and other luxury goods will now pay duty and value added tax in foreign currency.

“Payment of customs duty and value added tax on the importation of any item of goods designated as luxury item shall be payable in United States dollars, euros, or any other currency denominated under the Exchange Control (General) Order, 1996 (Statutory Instrument 110 of 1996),” read the notice by the minister.

The general rate of duty for cars ranges between 60 and 80 percent depending on the type of vehicle.

In the past, importers paid for duty in local currency, making it considerably cheap to import.

Zimbabweans were spending an estimated US$400 000 importing an average of 80 used vehicles a day from Japan, Singapore, Dubai, the United Kingdom and the United States.

Business had become so brisk some foreign car dealers were advertising their latest brands of cars in the Zimbabwean Press. READ MORE…

Brussels is expected to initiate infringement procedures against Malta over its discriminatory registration tax on used cars, MaltaToday can reveal.

Malta’s higher registration tax on second-hand cars is currently being investigated by the European Commission’s directorate for taxation and customs, and is likely to culminate in the first stage of infringement procedures to be launched against Malta this month.
In response to a complaint from a Maltese citizen, an official from the Commission’s directorate said an infringement of EU law could arise if the tax on second-hand imports was higher than that imposed on new car imports.

Head of unit Micole Wiebke said an investigation is under way into the reduction of registration tax in order to comply with EU law, which prohibits member states from imposing any tax on EU products in excess of that imposed on similar domestic products, or so as to afford indirect protection to other products.

Malta’s tax regime on cars discriminates between new imports and used cars by setting a minimum tax charge for used cars. Both imports are subject to a tax of 50.5 to 75 per cent, according to engine capacity, but used imports have a minimum charge of Lm1,200, stepped up progressively according to engine capacity. While the tax on new cars is calculated on their cost, import and freight charges, the tax on used imports is assessed on a valuation by transport authority officials. READ MORE…

All Pakistan Motor Dealers Association (APMDA) Chairman H.M Shahzad speaks to Daily Times’ Senior Business Reporter Arshad Hussain on the government’s policy for the auto sector, foreign investment and Pakistan’s chances for exporting cars.

Daily Times: What changes in the government’s policy do you foresee in the auto sector in the forthcoming budget?

H M Shahzad: The government will have to give a clear-cut auto policy in the forthcoming budget in May 2007 to counter the rising demand of the passenger vehicles, as the local manufacturers and assemblers are not able to meet this demand.

The federal government has recently approved a five-year auto policy for the local assemblers and manufacturers, as well as the new foreign investors coming to Pakistan.

The government should also make some changes in the import policy for the dealers, as they are filling the demand and supply gap.

The main problems of the auto sector are demand and supply, black marketing - as every car is being sold on on-money – and 100 percent payment at the time of booking.

Because of the import allowed by the government in 2004, the local assemblers and manufacturers are facing a healthy competition and as a result of this competition, on-money and black-marketing of brand new cars have reduced in the last two years.

The on-money on most of the vehicles including Toyota and others has been suspended.

DT: Can the local manufactures meet the demand for cars and will the government ban imported cars?

HMS: The local assemblers and manufacturers are unable to meet the rising demand, which is moving up by 22 to 25 percent per year. The local auto companies cannot even fill the backlog of the previous years then how can they fill the rising 22-25 percent demand.

In my view, the imported cars would not be banned, as it is necessary for the government to import vehicles to fill the gap as in the case of sugar, cement and products in demand.

And if the government does ban imported vehicles, the same situation would be created as in 2003 and 2004, when customers were getting delivery of their cars after a year despite making full payment.

I am reading statements by the auto industry in different newspapers, in which they are offering delivery period of the cars in one and half month, but contrary to this, Suzuki is delivering cars in five to six months, while Honda City and Honda Civic is being delivered in a four to five-month period. READ MORE…

Following an upsurge in the number of people falling victim to unscrupulous used-car dealers, Zimbabwe’s Embassy in Japan has released a list of reputable Japanese used car dealers to the Consumer Council of Zimbabwe.
This follows a flurry of complaints from more than 100 Zimbabweans to the Embassy in Tokyo after cars they had purchased were never delivered.

However, some Tokyo and Singapore used car dealers are reported to have also been conned by some bogus Zimbabwean importers who conduct business smoothly during the first few transactions, and then vanish after securing, but before paying for millions worth of used cars.

Some Japanese used car dealers are reported to have withdrawn from African markets after numerous incidents in which they were conned out of hundreds of vehicles.

People who need a new car but are trying not to spend too much money should check out the used-car market, as some high-quality used models can be found at relatively low prices.

It also can be more exhilarating to shop for a used car in good condition at a reasonable price than a new car.

However, it is relatively difficult to find good-quality used cars with low mileages because more and more people are keeping cars longer than before.

In light of this, an increasing number of companies are trying to meet customer demand by providing information on the quality of used cars and other forms of service.

Trust will always be a factor when shopping for a used car. A car dealer may say there is no problem with a car, such as having no scratches or history of repair. But are they telling the truth?

In an attempt to lay such fears at rest, a company started using the automobile inspection system–a system for evaluating car quality for dealers–for consumers in October.

Aucnet Inc., which manages dealer-only auctions for automobiles, inspects each of the cars it places on the block. A total of 324 points are checked. The company ranks each car it inspects on a grade of one to 10 and issues certificates.

Proto Corp., which publishes a magazine on used cars titled Goo, attaches certifications issued by a nonprofit organization to some of the cars covered in its Shizuoka edition. The NPO focuses on four points in evaluating cars: Whether the cars have scratches or dents; whether the interior is clean and stain-free; whether the engine and other parts are in good condition; and whether the cars have undergone major repairs. The company says it is considering expanding this evaluation system to its other editions. READ MORE…

New vehicle sales in 2006 came off the boil with a slight dip on 2005, but used car sales plunged 18.5 per cent.

A total of 99,986 new cars and commercial vehicles were sold last year, down 3.35 per cent from 103,448 the previous year.

New passenger car sales ended their five-year run of higher sales to end the year at 76,804, down 1021, but commercial vehicle sales were down 2441 to 23,182.

Motor Industry Association chief executive Perry Kerr said that after five years of solid sales growth “a levelling out was inevitable".

The year had held up better than expected. “The industry is in good heart and sales volumes have settled at a vastly healthier level than we experienced at the end of the nineties.”

Mr Kerr said sales this year were expected to be similar.

Prices for new cars were unlikely to be cut to stimulate demand.

The recent rise in the dollar had also taken some of the margin pressure off, he said. New car distributors typically took up to six months forward cover on the exchange rate to smooth fluctuations.

Last year, Toyota sold 19,200 new vehicles, taking its market share to 19.2 per cent from 18.2 per cent and beating Ford by 4700 vehicles.

The Holden Commodore retained a slim margin over the Toyota Corolla as the country’s most popular model. READ MORE…

The Zanzibar government has licensed two foreign preshipment firms to inspect and test used motor vehicles imported into the country.

Salmin Senga, Principal Secretary in the Ministry of Communication and Transport, last week told The East African the move marks the beginning of the implementation of the code of conduct for inspection and testing of the roadworthiness of used motor vehicles.

The two firms are Sime Darby Motor Services Ltd of Hong Kong and Japan Auto Appraisal Institute.

Incidentally, these are the same companies contracted by the Tanzania mainland government for preshipment inspection of used motor vehicles.

Mr Senga said the implementation of the standards would ensure thorough inspection and testing of imported used motor vehicles destined for the Zanzibar market.

“The firms will be required to pay an annual certificate fee of $6,250 and an administrative fee of $20 per inspected vehicle,” he said.

The Tanzania mainland in June 2006 licensed Sime Darby to inspect used motor vehicles imported from China. READ MORE…

A DECISION to get all second hand cars checked by authorised agents before they are shipped to Fiji was welcomed by car dealers.

The Fiji Motor Traders Association has welcomed the Land Transport Authority’s decision that all second hand vehicles to be checked by authorised agencies before they are shipped to Fiji.

President Bob Niranjan said the association has been lobbying for this for a long time. He said used vehicles cause carnage on roads and many accidents are caused by used vehicles.

Mr Niranjan said used vehicle imports should be restricted to an age limit of five-years for cars and 10 years for large dump trucks.

He said the new range of engines from all manufacturers today were estimated to be 33 per cent more fuel efficient than cars from a decade ago.

Fiji imports around 5,000 second-hand vehicles yearly, of which 80 percent are sourced from Japan, just over 10 percent from Singapore while the rest are from other countries.

Land Transport Authority manager Standards and Compliance Naisa Tuinaceva said this was the first time LTA has embarked on such an initiative.

“It is the first time for Fiji and we are very grateful that Authorised Agencies in Japan and Singapore would do the first three phases of the check before the vehicles are shipped over.

“Even before they are being sent to Fiji, a copy of their inspection result would be given us.

“From the inspection report we would be able to give customers information they want on the vehicles,"Mr Tuinaceva said. READ MORE…

Japanese entrepreneurs are eying about US$550 million investment in car parts and car interior goods industry in Bangladesh, according to official sources.

The plan of installation of such a factory here by a Japanese leading car and engine parts company like Hitachi Car Engineering Co was laid bare last week at a meeting in Tokyo between the company’s Senior Engineer Masayuki Unezaki and Commercial Councillor at the Bangladesh Embassy Abul Mansur Md Faizullah.

This factory would cost US$300 million, the meeting sources said.

A group of executives of the company is learnt to have decided to visit Bangladesh by early February to place a formal proposal to the government for setting up a branch factory here.

During the meeting with the Bangladesh Embassy official, Masayuki Unezaki said being a large used car importing country, Bangladesh has a good potential for Japanese car parts manufacturing industry.

“Bangladeshi consumers need regular engine and parts backup for Japanese reconditioned cars, which is now fulfilled by costly imports from Japan. If the company can install its branch office at Bangladesh, the cost of such imports would be reduced by around 40 percent,” Masayuki added.

According to the sources, Bangladesh imports as many as 3,000 cars every year on an average, 80 percent of which are reconditioned ones.

In another development, the manufacturer of world famous Toyota brand car, Toyota Motor Corporation, now mulls setting up of a jute-based car interior textile industry in Bangladesh at a cost of $250 million.

The company has already conducted a study to assess the feasibility of the industry and found it suitable.

Senior Executive of the Toyota Motor Corporation Hajime Sakaquchi informed the commercial wing of the Bangladesh Embassy that they would conduct a further study before getting the project finalised. READ MORE…

The Government is considering introducing vehicle emission restrictions which could effectively put an age limit on imported used cars.

Associate Transport Minister Judith Tizard says draft rules will be put out for public consultation next year and might be ready for implementation in 2008.

The Government is considering using Japanese emission standards as about 95 per cent of imported used cars come from Japan.

Ms Tizard said yesterday there would be a set of steadily increasing standards, and cars would be tested at the border to make sure they met those standards.

No decisions have been made, but background documents issued with Ms Tizard’s statement said Japan’s 2000 emission standard could be introduced in New Zealand in 2008, and Japan’s 2005 standard in 2010.

That would mean that in 2008, cars older than eight years would be unlikely to meet the standard although that would depend on the make and model.

“Based on current trends, if introduced in 2008 the petrol vehicle standards would prevent around half the vehicles currently being imported from being allowed to enter the fleet,” the documents said. READ MORE…

With Christmas just around the corner used car dealers should be getting ready to gobble up a large portion of the season’s excessive cash flow, right?
Kenneth Shaw

Wrong, says Kenneth Shaw, president of the Jamaica Used Car Dealers Association and head of KACS auto Sales.
“Sales are not very high at Christmas, in fact I usually close down for two weeks during the season and send my staff on leave,” Shaw said.

“It is never a bumper season. People shop a lot, but they shop for consumer items. Then, around January-February when that is all over, they may want to purchase a car,” he explained.
But, this season the outlook in the used car industry looks dimmer than ever, with new regulations introduced by the Ministry of Finance and Planning that demand that the dealers start paying as much as an aggregate 180 per cent in government duties and taxes, upfront.

The Ministry imposed the new regime at the beginning of September, despite cries from the dealers that they needed time to negotiate financing and other arrangements to accomodate the new system.

“We tried to explain to them that (private) transportation is no longer a luxury, it is a necessity. We had several meetings to discuss the issue, but they wouldn’t budge.They insisted that they were creating a level playing field by putting all imports on par,” Shaw said.

Now he says that he is very concerned about the survival of most of the approximately 60 dealers, in the business, who fall under the umbrella of his organisation.

“They will have serious problems unless they have access to the additional funds to meet the upfront payments, or if they can get loans. Otherwise, they may have to diversify, like going into some other areas of the motor vehicle industry,” he went on.

He said that many dealers have been reducing business and cutting staff, and many more will have to follow suit during the new year, as they wilt under the weight of the new tax payment policy.
“With things as they are, I don’t see a very bright future ahead of us,” Shaw insisted.

He noted that even prior to the new system, the industry was already declining with importation of used vehicles, mainly from Japan, falling by some 30 per cent from approximately 22,000 in 2003, to just under 16,000 last year.

This was basically triggered by the government’s decision to limit the age of imported cars to three years. He said that since this year, there has been a further decline of about 25 per cent.
“The demand is still there, but when the new policy came in, imports dropped because costs soared and with the new measures it will get worse,” Shaw noted.

He admitted that the prohibitive cost of used vehicles was mainly due to the high level of taxation that they attract.
For example, he explained that a 2.2 litre Honda Accord or Toyota Camry attracts 40 per cent in common external tariff (CET) plus almost 52 per cent in GCT, creating compounded tax cost of 121 per cent. READ MORE…

AT first glance, the only thing Chilean about the sprawling duty-free car zone in Iquique, set between the Pacific Ocean and the Bolivian border, is that it is in Chile.

The thousands of used cars for sale are mostly from Japan, the dealers are mostly Pakistani, and the buyers kicking tyres are mostly from Bolivia, South America’s poorest country.

This duty-free zone in the far north of Chile is one of two set up during the 17-year rule of ex-dictator Augusto Pinochet to bring jobs and development to Chile’s furthest-flung cities. The other is in the extreme south.

These days, the booming car import industry testifies to the growing success of Chile’s bid to become the gateway to South America for Asia-Pacific countries. In the past decade alone, the number of used-car dealerships in the zone has jumped 40-fold. As many as 150,000 cars go through the port annually these days.

“We have shipments of cars coming in every day, and sometimes you have 40,000 cars in the lot at one time,'’ said Claudia Grimaldi Rodriguez, a spokeswoman for the Iquique Duty Free Zone Car Association.

When the imports first began, some 40 or 50 cars came in per month, she said.

Iquique has taken on the aspect of an international trade hub, attracting job seekers and entrepreneurs from within Chile, from Peru and Bolivia and from as far away as Pakistan.

The area has even drawn the attention of US authorities who, according to a State Department report last year, have looked at the potential threat from extremist fundraising in the free trade zone.

Inside the lots, buyers from Bolivia, Paraguay, Peru and Brazil haggle to buy cars at a fraction of retail prices. Most of the cars are Japanese Nissans, Toyotas and Mitsubishis.

“Bolivians are the shrewdest negotiators,'’ said Amil Rajput, a Pakistani-American businessman who imports some 250 used cars a month from Japan, and who arrived in Iquique in 1997 to run the family business.

“When it comes time to pay, the women ask to use the restroom, where they take the money from underneath their skirts,'’ he said.

The buyers usually arrive on buses that come in three times a day from Bolivia. The brisk trade has even spawned a secondary industry of street vendors who sell the cassava dough and cheese snacks typical of eastern Bolivia.

On the Bolivian side of the border, the vehicles end up as taxis or minibuses, and as luxury four-wheel drives for Bolivia’s small middle class.

In Santa Cruz, 500 miles west of Iquique, dealers say the assortment of Japanese cars in warehouses on the border is so large they can cater to any customer’s needs. READ MORE..

An Iranian man arrested on suspicion of buying a stolen car allegedly exported stolen cars by passing them off as legally registered used vehicles using identification numbers from different cars, it was learned Tuesday.

Zoreband Beinam (phonetic spelling), 35, of Kohoku Ward, Yokohama, is believed to have exported more than 300 stolen vehicles in the year to July, gaining about 400 million yen illegally.

He exploited a loophole in the vehicle number identification system that was introduced in January. The Metropolitan Police Department is cracking down on the system as the method is becoming popular.

Beinam is being tried on suspicion of buying a stolen car from a theft ring that targeted SUVs in the Tokyo metropolitan area in December.

According to the police, Beinam is believed to have bought a Toyota SUV worth about 1.5 million yen for 200,000 yen from Satoshi Kogasaka, 28, the head of the theft ring. Kogasaka is now on trial for theft and other charges.

Beinam established a company in Yokohama two years ago that dealt with imported cars. The MPD found that the company exported used SUVs to Dubai in the United Arab Emirates and Vladivostok, Russia, for between 100,000 yen to 2 million yen.

The police found a large number of photos of stolen SUVs on the company computers. The photos had been e-mailed to recipients in Dubai and Vladivostok immediately after container ships loaded with the SUVs left port.

Sources close to the company said that at least 300 of the exported vehicles were part of the 800 vehicles stolen by Kogasaka’s gang near Tokyo.

To prevent the illegal export of stolen cars, the Road Trucking Vehicle Law, which was amended in January, requires owners to submit a certificate to customs issued by district transport bureaus that cancels the domestic registration once the car has been exported. READ MORE…/A>

By Nassos Stylianou

IT HAS BEEN two weeks since the introduction of the new law on car taxes and second hand car importers are still having huge problems getting their cars out of bonded storage. This frustrating situation has developed because of bad planning and mismanagement by the Ministry, according to a press release by the Motor Vehicles Importers Association.

The new law on car duties was implemented after receiving a resounding majority vote in a Parliament on November 2. According to the bill, there are now four taxation categories instead of the previous six.

The policy on used cars has also changed. Previously, cars over six years old were taxed at 25 per cent over the regular rate but under the new bill, used cars face tax rates which decrease with the passing of every year – which means up to an 85 per cent discount for a nine-year-old car. READ MORE…

When the importation of second hand cars from Japan began, not many people foresaw that these cars would one day dominate the motor industry in Botswana.

These cars were simply dismissed as difong-kong (fake), but now, about 10 years later, it is not just local car dealers who are feeling the pinch, the re-sale market for local second-hand cars has taken an even harder knock.

And now with imports coming from Singapore as well, sales of local cars in the dealerships have dropped as much as 40 percent.

Both local second hand car owners and dealers say selling their cars is now a nightmare and at best, most of them sell at way below the market value, otherwise they risk going for months without a buyer.

If the market was like before, Mota Moatshe who owns a Toyota Conquest 2002 model would sell his car but given the prevailing environment, he reckons, his best option is to keep it.

At least he can afford to keep it, but there are those who cannot afford that - and in many cases they need to sell fast.

Lesang Maswabi, graphics editor at Mmegi does not have the same luxury, he wants to sell because he has other projects that need his immediate attention, but his Jeep Wrangler has been in the classifieds section for months.

And it seems, owning a high value vehicle such as his, is actually his Achilles heel, after-all, he can only bring the price down to so much, as there is still an outstanding bank loan to clear for the car.

He says he has received many enquiries, which have been followed by dead silence, this is not notwithstanding the fact that he is selling it at P30,000 - less than its book value.

He is not alone and car dealers are also in the same pot, thanks to the second hand imports, which have brought down sales of local cars and their re-sale values.

Car dealers say selling a local second hand car for its value is near impossible. “The re-sale market is almost dead,” said Widzani Marobela, sales manager at Gaborone Autoworld, the former Gaborone Delta, Isuzu dealers.

Marobela says as dealers they now have to buy second hand cars from individuals at lower prices because for them to sell the same cars is just as difficult.

If they were to buy second hand cars at dealer prices, they themselves would not be able to sell them for more, she reasons. While she does not complain about the importation of the second hand cars, she says there should be a mechanism for determining the true age and mileage of these cars before they are brought and registered locally.

“It’s a catch 22 situation because it’s a free market economy, but the people who get burnt at the end of the day are the customers,” says Masego Gaborone, sales manager at Naledi Motors.

Gaborone points out that although they service second hand car imports, they cannot be held liable for faults in the cars as they do not have the history, of the cars. He says the demand for used cars has been affected by the availability of Japanese cars, which he says, “basically undercut prices.”

He says that people are now bargaining more when buying local second hand cars because they have the option of going for the imports. He adds that they now deal more with trade inns but they also bargain as much as possible, after-all, they too have to sell these cars and face the same difficulties. Read More…

Used vehicle imports should be restricted to an age limit of five years for cars and 10 years for large dump trucks, the Fiji Motor Traders Association president Bob Niranjan says.

In a statement, he said the new range of engines from all manufacturers today was known to be 33 per cent more fuel efficient than cars from a decade ago.

“FMTA has just completed its submission to government, explaining the benefits of reducing tax (27 per cent customs + 10 per cent excise + 12.5 per cent VAT) to Fiji in many ways than one. We are requesting a rate on new vehicles of 15 per cent and removal of the 10 per cent excise duty imposed for the first time last year (15 per cent + 0 + 12.5 per cent),” he said.

He said most certainly there would be massive savings for the Government alone if new vehicles population increased from its current 2200 units per annum to 3000 units

Mr Niranjan said the current import of 5000 units of used vehicles per annum was increasing the average age of vehicles on our roads rapidly and contributing to massive increase in fuel imports, due to older technology of 10 year old Japanese car engines with less fuel efficient engines.

“This increase in new vehicles can only be a possibility if new vehicle duty is reduced so that the average person can afford to buy one.

READ MORE…

WHEN vehicles are choking roads and expressways, it means the automotive sector and the economy are doing well. But when they choke up showrooms and stockyards, something is wrong.

Automotive market watchers estimate there are some 120,000 unsold new vehicles lying in showrooms and yards across the country. About half are of the Proton make.

Proton Edar Dealers’ Association (Peda) said Proton Holdings Bhd has 404 sales and service dealers who sold an average of 8,000 cars a month in the first six months of this year.

The 404 sales and service centres are owned by 198 Peda member companies, Proton Edar, Edaran Otomobil Nasional Bhd (EON) and EON dealers. They have each lost about RM20,000 a month in the January to June 2006 period.

Peda said that if the situation persists, about 30 per cent of its members will be out of business by the year-end.

Automotive plants in Malaysia rolled out 30,000 more units than the 248,407 they actually sold in the first half of 2006.

The surplus capacity has already led to a big cut in car prices. Car buyers welcome the situation, but manufacturers and dealers lament their lower profits.

READ MORE…

Everybody complains about high car prices - used and new - in South Africa. John Oxley has just returned from New Zealand where he discovered cars are cheap. Why can’t it be the same here?

Imagine an MGF sports car with just 35 000 km from new, for less than R80 000. Or a Daihatsu Feroza 4x4 with 50 000 km for less than R8 000. Both in excellent condition, and complete with a two-year warranty.

That’s the reality of buying a used car in New Zealand, where the flood gates have been opened for second hand vehicles from Japan, and almost everybody has a car which they own - or soon will.

It all comes about because the Japanese Government has a very strict car safety system which increases the cost of ownership over time.

Any car over five or six years old becomes very expensive to test and service so drivers prefer to buy new cars and put the old one up for auction.

And many of these cars end up in New Zealand, which now has a thriving used car market.

On top of this all cars in New Zealand older than six years must have a safety check every six months; cars younger than that once a year. So you can be fairly confident your purchase is fit to drive.

However, the downside of all this is that new car dealers are finding it harder and harder to move stock. Why buy a new car when for a lot less you can get an excellent used buy?

READ MORE…

Motorists should check that a car’s odometer matches the average mileage for a vehicle made that year if they are suspicious about tampering.

The Motor Trade Association (MTA) has warned that the process used by odometer checking company Automotive Inspection Services (AIS) was limited and it cautioned its members against buying cars inspected by the company.

AIS does not abide by a recently developed industry code of practice.

AIS told The Press it imported more than 20,000 cars a year.

Automobile Association technical advice manager Jack Biddle said motorists could calculate the average mileage of a car by multiplying 14,000km – the distance typically travelled in a year by New Zealand drivers – by the age of the vehicle.

If the odometer reading was significantly less, such as half the number of kilometres estimated, the prospective buyer would be wise to get an expert inspection of the car, he said.

Association spokesman Andy Cuming said motorists could protect themselves from buying a vehicle with a tampered odometer by dealing with established, branded car dealers who had a reputation for standing behind their vehicles.

The association wanted agreement within the industry on an appropriate process for certifying odometer recordings.

“This is essential in the interests of our MTA dealers, who buy and sell these products, and their customers, who must be able to rely implicitly on the accuracy of information relating to their purchase,” he said.

READ MORE…

The economy may be looking up, but Japan’s automobile sales remain stagnant. Sales figures for new automobiles excluding light vehicles in July show that year-on-year monthly sales have been in decline for 13 months straight.

The slump is the longest period of low sales since 1968 and goes against the perceived industry logic that if the economy improves, then so will car sales. So what is behind this trend?

At the start of August, a salesman at Tokyo Nissan Auto Sales Co.’s showroom in Itabashi Ward, Tokyo, was astonished to read the monthly data from company headquarters.

During the month of July, the summer bonus season in Japan, the number of people who visited one of the 46 Tokyo Nissan showrooms was 14,300, down 10 percent from the previous year. If methods of attracting customers, such as direct mailouts, are excluded, the number of people who visited a showroom was down 50 percent.

“Even if we call customers who previously changed their cars every three to five years to see if they are interested in making a new purchase, they turn us down, saying, ‘I’m happy to keep driving my present car for now,’” an Itabashi showroom salesman said.

Nationwide, the July sales of new automobiles (excluding light vehicles) showed a year-on-year decrease of 9.1 percent, at 317,928 vehicles. The decline has continued since July of last year.

READ
MORE…

Used car buyers are in the driving seat after a dramatic slump in the market.

There were more than 10,000 fewer used car sales last month than in May, creating a winter glut in an already depressed market awash with Japanese imports.

Although the car market is cyclical, the drop in sales is almost twice the size of the fall at the same time last year.

No official tracking is done of price changes in the used car market, but the Weekend Herald used a price analysis done by the Dog & Lemon Guide - a guide for car buyers - that showed recent sellers losing anywhere between half and 87 per cent of their car’s value.

In some cases, this cost sellers as much as $30,000 on cars less than five years old.

The analysis found depreciation rates consistently outstripping those on similar cars five years ago.

The depreciation rate for a new car such as a Ford Falcon has almost doubled in the past five years.

Industry members say the buyers’ market has been caused by a combination of over-supply (blamed mainly on Japanese imports) and a lack of demand because of the cost of petrol, the economic slowdown and bad winter weather.

David Vinsen, chief executive of the Independent Motor Vehicle Dealers Association, said the market had been “soft” for some time.

“Right now, all the planets are in alignment for the car buyer,” said Mr Vinsen, who represents used import dealers.

“It is all the wrong way around - you could probably export cars back to Japan and make a profit selling them there.”

READ MORE…

It remained unclear up to press time last night if local motorists will be affected by yesterday’s recall of 420,000 vehicles made in 2001 by Toyota Motor Corporation, the manufacturer of some of the most popular cars on Jamaica’s roads.

In its recall, reported by AFP wire service, Toyota disclosed that over 60 per cent of the affected vehicles -all manufactured in 2001 - were sold in Japan, while about 150,000 were sold internationally, mainly in the United States and Canada.

Yesterday, Toyota Corporation of Jamaica - the local dealer - said it was not aware of the recall, and that it would likely have been advised if the vehicles it sold were among those affected.
“If it was something that was applied to Jamaica, we would have been advised,” said John Allen, Toyota Jamaica sales manager. “We have not had any such communication at all. If we had a problem we would take the necessary procedures.”

Importantly however, most of the Toyota cars being driven in Jamaica are imported into the island directly from Japan by used car dealers. These are cars that are typically manufactured for the Japanese domestic market, and so could be among those affected by the recall.

The cars have a fault that makes the engine leak oil and so destroys it. The 12 specific types of Toyota that are affected include Corollas, the compact cars Vitz and Platz and the hybrid Prius.
Yesterday, Dwight Moore, CEO of WorldTron group of companies, a local car dealership that sells pre-owned Toyotas among other brands, told the Business Observer that it would not be completely surprising if some local cars were involved.

READ MORE…

Tanzania has licensed Sime Darby Motor Services Ltd of Hong Kong to inspect used motor vehicles imported from the island enclave.

A previous licence granted to Ms Hong Kong Vehicle Inspection Company was withdrawn a year ago for failure to meet the laid down procedures for used motor vehicle inspection.

The director of the Tanzania Bureau of Standards (TBS), Daimon Mwakyembe, told The EastAfrican last week that Sime Darby has been granted a one-year renewable license to inspect all used motor vehicles imported from Hong Kong. (more…)

THE new 10% environmental levy on used cars more than 10 years, has affected sales by almost 70%, a top importer said last week, reports Caroline Arinaitwe.

Imran Yunus, the Yuasa Investment managing director, said in an interview that the effect was likely to push importers out of business or relocate elsewhere.

“Last financial year, used car importers contributed sh70b to the Uganda Revenue Authority (URA) while the new car importers contributed only sh19b.

“This implies we have been contributing a lot to this country’s economic development. This is a shock to this new growing industry,” Imran said.

He said before the new tax, Yuasa Investment would submit to URA between sh40m and sh50m a week in import taxes.

“But now, we cannot even raise sh15m a week,” Imran said.
He said the implication is likely to lead them out of business and they think of investing somewhere else.

“Our vehicles imported from Japan have mechanisms called Electronic Fuel Injector (EFI) that does not produce fumes to pollute the environment. The used leaded fuel put in both used and new vehicles is the one that causes pollution. I think the government should try to stop the use of that fuel other than retarding the development of the economy,” he said.

Imran wondered why the government could impose on used cars yet even if you buy a new one after a time it will still be old.
“Our objective is to a vehicle a necessity so that every Ugandan can drive and I guess few people can afford to buy new cars here,” he said.

He requested the government to always contact the business stakeholders before they impose a tax because they can cause a negative impact on the economy, industry employment among others.

Source : http://www.newvision.co.ug/D/8/220/508703

Every city in Canada seems to have at least one street where drivers go to show off their automobiles – and the more exotic, the better.

Whether it’s Vancouver, Calgary, Toronto, Montreal or any other major urban centre, there’s always a good car-spotting location – just as there is anywhere from Tokyo to Monte Carlo.

But do you necessarily need to have a bank account to shame a movie star to own an exotic automobile? Not really, if you look closely at certain makes and certain model years.

A walk round one or two “pre-owned” departments at auto dealerships and a good scan of newspaper classified pages and their related websites will reveal all kinds of bargains among older upscale automobiles that still have lots of life left in them – and plenty of prestige too. For this column, I’ll try to stick to a few of my favourites that cost under $25,000 – in some cases, they’ll be a great deal less.

For the price of a new mid-sized sedan, anyone prepared to risk the possibility (and in some cases, it’s only a possibility) of potentially costly repairs can get behind the wheel of a car that certainly wouldn’t look out of place in one of the country’s prime “cruising streets.”

How about, for example, a 1980s Porsche 928S, with no less than a potent V-8 engine under its hood? These can be picked up for amazingly low prices – well under $20,000 – and some of the examples I looked at recently were in excellent shape. Detail a 928 nicely and it would look just fine parked alongside all kinds of prestige automobiles.

Another used thoroughbred easily procured for under $20,000 is the sleek Jaguar XJS, which ceased production several years ago to make way for the last model XK. The XJS had a very long model run and got better as the years went by as far as reliability went. Many of these came with a wonderfully silky V-12 powerplant – something you can’t get in any Jaguar right now. You might not be a millionaire, but at the wheel of a leather-and wood trimmed XJS, you’d certainly feel like one – and the convertibles are especially desirable.

Many Jaguar models from the 1980s and early 1990s can be found for reasonable prices and still look very grand. A 1994 Sovereign sedan I spotted in one newspaper ad was priced at just $12,000 and had a modest 120,000-km on the clock.

Older BMWs are good buys and one of my favourites is the 325 series, which has come as a two-door, a four-door, a wagon and a convertible over the years. Examples in good condition can be found for for less than $10,000, and even models from the mid-1990s are very fairly priced. The quality of the cars – and the durability of their powertrains – is legendary.

One Japanese luxury car I remember from its introduction is the Lexus SC 400 and I was surprised to find one of these – a 1993 model – for a thrifty $13,900. I loved this car when I first tested it and very much admired its silky V-8 power, superb build quality and restrained good looks. An equivalent model today would cost almost $100,000 with tax.

READ MORE…

Everyone wants cheaper cars on the market. And the solution may be at hand for those who want lower registration tax, the main fiscal component responsible for pushing up car prices.

Brussels wants registration tax to be completely abolished by 2016, claiming car prices will fall by 10 to 25 per cent if registration tax is cut just by half across the EU.

Instead, it will replace the tax with a CO2-based system to penalise those who harm the environment more: the more carbon dioxide, the main greenhouse gas affecting climate change, a vehicle emits, the more its owner has to pay.

The European Commission wants to achieve its Kyoto Protocol deadlines by using the polluter-pays-principle to make it more expensive for heavy polluters to keep their cars on the road.
In reality, the registration tax system works on similar lines. The more powerful the engine, and the more fuel it consumes, and the greater the chunk of taxation levied on its value. In Malta, every brand new car imported from the EU is levied with a minimum tax equivalent to 50.5 per cent of its cost, insurance and freight value when it arrives on the island.

READ MORE…

Internet crooks are offering ‘no questions asked’ car clocking services - and it could cost you dear. Read on as we expose the scam.

Auto Express one, car clockers nil! We have scored a major victory in the ongoing battle against crooks who wind back the mileage of vehicles to rip off motorists. The move follows an undercover investigation into the way criminals are secretly using the popular www.ebay.co.uk auction website.

Sellers were offering to clock cars for £40 a time, allowing dodgy dealers to falsify a motor’s history and net thousands of pounds in profit. And we know this, because we’ve done it! Posing as someone interested in these so-called ‘mileage correction’ services, we actually got two cars clocked instantly, increasing their value by an incredible £3,000.

When we told eBay what we’d done - and, more importantly, how we’d done it - its spokesman thanked us for bringing the problem to his attention. After speaking to the site’s lawyers, he said: “We are revising our policies so that, in future, these listings will be taken down as soon as we are made aware of them.” The spokesman explained that eBay will soon be launching an “encouraging illegal activity” policy, which these clockers would infringe. “It means that if a sale is found to be doing that, it will be taken down from the site,” he added.

Clocking is estimated to cost UK motorists around £100million per year, and it’s as prevalent today as it ever was. What’s more, this latest scam isn’t only for old cars with analogue odometers. The digital ones can be altered just as easily - which is ironic, because they were introduced to try to cut down on the illegal practice!

So, how did we carry out our sting? We logged on to eBay to find someone willing to clock a car. It wasn’t hard - there were several firms to choose from - but we picked one which offered “mileage correction” for digital and analogue odometers on Japanese imports. A statement on the auction page read: “If your car has done 80,000km, we can reset it back to the correct UK mileage, 50,000 miles". Clearly, that’s the service provider’s justification for doing what he does, but as we could not lay our hands on a Far Eastern import, we thought we’d try our luck with some others.

As the website featured a phone number, we rang to ask if the firm did other cars, too. Not a problem, the man said - what did we have? We made up two models: a Saab 9000 with an analogue read-out and an Audi A4 with an electronic set-up. Amazingly, he claimed both were possible, and he’d even come to us with his kit. We joked that it sounded like he could clock any vehicle and, laughing, he said he virtually could! We made our excuses and put down the phone. It was time to go shopping

Read More…

TOKYO (XFN-ASIA) - Toyota Motor Corp and Nissan Motor Co have each launched a novel type of dealership for preowned vehicles, to capitalize on the popularity of such cars, the Nihon Keizai Shimbun reported.

Toyota has formed jointly with three sales companies a firm to purchase and sell preowned autos.

Toyota already has networks of used-car buyers and sellers, but Toyota U-Car Sales Create Co, located in Sayama, Saitama Prefecture, will combine both functions. Having opened its first location in Iruma, Saitama, the new entity’s second outlet is expected to be established by August in Sayama, the report said. (more…)

Lyttelton Port of Christchurch (LPC) has opened a dedicated vehicle processing terminal, with little let-up in South Island demand for cars despite high petrol prices. (more…)

Vehicle importers renewed their threat to go on strike on Friday to protest at a new requirement for clearing of Japanese cars.

The Association of Importers of