Why are Second hand cars so expensive in NC?

PoliticoRon


Joined: 09/11/2009
Posts: 34

Message Posted:
08/08/2010 11:57

The subject line probably sums up what I am asking - I look on this site and see people trying to flog drivable tin sheds for thousands sterling. I sold a 11 year old Megane here in UK last month and got £200 for it. I was thinking of buying a runaround for times in NC, but it doesn't seem economically viable. There was someone on here asking 14 grand for a 13 year old jeep - book price UK £2500!

joandjelly


Joined: 24/02/2008
Posts: 2953

Message Posted:
08/08/2010 12:15

It's all down to import duty. When we first moved here we paid £600 for a 30 year old Cortina! Mind you we did sell it a year later for the same price

Crumpy



Joined: 05/06/2010
Posts: 419

Message Posted:
08/08/2010 12:34

Also in Turkey, cars keep their value ... and the chief reason for that is that mechanics, particularly those doing bodywork, offer their services at a much cheaper rate ... and these bodywork repairmen (called kaportacilar) can do a superb job ... I have seen a car, that would be considered a write-off in the UK, made to look like new in Turkey.

zerochlor


Joined: 03/04/2009
Posts: 4024

Message Posted:
08/08/2010 12:59

or maybe because new cars are almost double the price of the UK,and there for residual value of a older car is much higher,forget looking at book prices for TRNC.

Crumpy



Joined: 05/06/2010
Posts: 419

Message Posted:
08/08/2010 13:15

Re : msg 4 - Hi Zeroclor - My partner and I are intending to buy a car in KKTC, and thus i have been comparing prices ... and it would seem that new cars, on average, cost 30% more than those in the UK.



However, they depreciate in value much slower than those in the UK ... for reasons, such as those in msg 3.



Re . msg 2 - Sorry Jo, but import duties are imposed when there is a price difference - it doesn't explain why there is a price difference.

wanderer


Joined: 05/02/2009
Posts: 1653

Message Posted:
08/08/2010 15:07

Crumpy

Import duties are a tax on goods bought into the country and are revenue raisers

so a second-hand car will have a 40% duty on value plus a $per cc charge

hence the increased cost of cars increasing the cost of a car

Crumpy



Joined: 05/06/2010
Posts: 419

Message Posted:
08/08/2010 15:35

Wanderer ... Of course the duties are used by the government to raise revenue, but the amount of that duty approximates roughly to the cars' price difference (here compared to the UK) - Think about this :

(a) If the duty were less than the difference, then most people would consider importing.

(b) If the duty were more than the difference, then no one would consider importing.



The real question here is this, why are new cars approximately (only) 30% more here, whereas second-hand cars of the same age are between 100% to 200% more expensive.

basil


Joined: 10/04/2009
Posts: 168

Message Posted:
08/08/2010 18:01

Crumpy, percentages are only part of the story. Yes, a new car is 'only' 30% more making it apparently more sensible to replace your twenty year old Renault with a shiny new whatever; but the actual price of a new car is beyond reach for many - so they look in the secondhand market.



After that, it's supply and demand. If there were hundreds of used cars in good nick, asking prices would drop to levels closer to those in the uk. They are in short supply because it's not been an open market - after years of embargoes - and so the value is raised.



A further factor is greed - not only locals but many expats want their purchases as cheap as chips, but anything they sell is at top dollar.

stephen48


Joined: 25/06/2009
Posts: 224

Message Posted:
08/08/2010 18:03

cars manufactured in Turkey are not subject to import duty as far as i know. we bought a hyundai matrix for the same price it would be in the uk because it was manufactued there.

catalkoykid


Joined: 15/02/2009
Posts: 1190

Message Posted:
08/08/2010 18:16

but any car that is not produced there,ie all the rest duty to be paid

oddjob


Joined: 16/09/2008
Posts: 62

Message Posted:
08/08/2010 19:51

We have a Volkswagon Polo, 1400cc. 2006 plate but registered in 2007. Just paid about £5000 (Grand) for it in England.







If i shipped it over, besides shipping fee's etc, would i be allowed to keep it in North Cyprus? How much in fees, duty & taxes would i be liable to have to pay?





Cheers

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
08/08/2010 19:55

I think you'll find you can't import a car that's over 3 years old (unless you've owned it for over 5 years).

wanderer


Joined: 05/02/2009
Posts: 1653

Message Posted:
08/08/2010 20:09

Crumpy the duty is paid on the glasses guide value so a £20k second hand Discovery would have £8000 import duty and an additional fee for the cc making it near £16k in duty

A 1300 cc 7 year old car would be about £1600 uk value £3800 including the cc duty making a £3800 uk value car worth £5000 to £6000 in the TRNC simple maths plus include a cost of shipping fees £800 to £1200

New cars in the UK have 17.5% VAT in their value take away this and do the sums

Crumpy



Joined: 05/06/2010
Posts: 419

Message Posted:
09/08/2010 02:02

Re : msg 8 - I agree Basil - another reason why second-hand cars keep their value in Turkey and KKTC is because, as you stated, the price of a new car, albeit more "sensibly" priced, is still beyond the reach of most people. Therefore, with a bigger demand for second-hand cars, they are more expensive than those in the UK.

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
09/08/2010 08:12

As from15th of aughust you'd pay $7 per cc duty on cars with 3000 cc engine or above.



wanderer;

%40 duty is on european cars.....for japs it is around %70 of the book value.

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
09/08/2010 08:17

msg 14;



"Re : msg 8 - I agree Basil - another reason why second-hand cars keep their value in Turkey and KKTC is because, as you stated, the price of a new car, albeit more "sensibly" priced, is still beyond the reach of most people. Therefore, with a bigger demand for second-hand cars, they are more expensive than those in the UK"



I have to dissagree with you on that one since interest rates on buying new cars are much lower then those on second hand (%6-%14) cars if you are buying on finance.

Crumpy



Joined: 05/06/2010
Posts: 419

Message Posted:
09/08/2010 10:41

Re : msg 16 - Not quite certain what you're trying to get at there Yorgozlu - Basil and I are merely saying that there is a greater demand for second-hand cars, and the interest rates you gave support this - Dealers do not need to offer low interest rates to entice customers into their second-hand car showrooms.

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
09/08/2010 13:31

Crumpy,

msg17;



Jusy trying to point out that "there is just as much demand for new cars also due to lower rates on finance.Thats all.

LOvegod


Joined: 22/03/2009
Posts: 161

Message Posted:
10/08/2010 19:14

whats to stop you buying in the uk with a 12month tax and mot and driving it here for 12 months. then either take it out again or sell it to a trnc garage ?

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
11/08/2010 01:42

msg 19;

It is not simple as that!

How would you change the name on log book.It is a uk reg car after all.

LOvegod


Joined: 22/03/2009
Posts: 161

Message Posted:
11/08/2010 15:06

why would i want to change the name on the log book. im on a 3 month renewable visa

yorgozlu



Joined: 16/06/2009
Posts: 4437

Message Posted:
11/08/2010 15:17

msg 21;

You are the one that suggeted selling the car here in TRNC rather then paying import duties.



Often I tried but never succeeded in having best of both worlds.What you've suggested is no different.