Car TRUE value? how much is your car without markup?

[philsat]

How much is your car without markup of dealer and manufacturing plan.

Anong phil brand ang may mababang markup sa mga car nila? Toyota, Mitsu, honda, kia, hyu, etc.

[dr. d]

very wild guess... 50-70 % of the commercial price.

[philsat]

Sabi kasi ng iba ang laki ng markup ng dealer sa bawat ka. Kung ang cost ng car e 500k e 700k ibibinta sa market.

[vvti2.0]

100% sa mga motorcycles, or baka mas mahigit pa. Lalo na ngayun na mas matindi ang technology sa mass production and lower cost of labor sa china.

[philsat]

Kung 100% ang markup. Tubong lugaw yan.

[rhops]

guestimate is around 50% to 70% as *dr.d said. However we are paying for the taxes also

[vvti2.0]

Tubong lugaw talaga ang vehicle manufacturing.

Just imagine kung ilang taon bago maging obsolete ang engine mo kung asan ang majority ng investment mo.

4JA1 and 4d56, how many years na nag eexist sa market. If mahina rnd mo, maki joint venture ka or buy a technology, or antayin mag expire yung patent.

Nakita mo na ba sales ng motorcyle, at nakita mo kung gaano rin kadami ang delivery araw araw?

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Tubong lugaw talaga ang vehicle manufacturing.

Just imagine kung ilang taon bago maging obsolete ang engine mo kung asan ang majority ng investment mo.

4JA1 and 4d56, how many years na nag eexist sa market. If mahina rnd mo, maki joint venture ka or buy a technology, or antayin mag expire yung patent.

Nakita mo na ba sales ng motorcyle, at nakita mo kung gaano rin kadami ang delivery araw araw?

[17Sphynx17]

This is just based on information we know that is readily available.

Step 1, remove the output vat of the sale:

SRP / VAT = 89.29% of SRP

Step 2, remove the excise tax, assumed profit margin as supposedly declared by an executive of Honda which is 6%

After that, you need to know excise tax rate which is as per BIR

a. Excise Tax for MV (source : Excise Tax - Bureau of Internal Revenue )

0 to P 600,000 - 2%
P600,000 - P 1,100,000 - P 12,000 + 20% in excess of P 600,000
P1,100,000 - P2,100,000 - P112,000+ 40% in excess of P1,100,000
P2,100,000 - over - P512,000 + 60% in excess of P2,100,000

For this arguement, lets assume a sub 1mphp vehicle but more than 500k php so that we have a basis.

Excise Tax would be around 6.5%, Dealer profit claimed at 6%. That is 12.5% of the the 89.29%

As for the tariff, the Tariff Finder site states that based on ASEAN Agreements, tariff is 0 for CKD vehicles, Jpepa though unsure now as the site declares it as S (Special) for CKD and disallowed for non-CKD vehicles.

I would assume for discussion purposes that the Overhead costs to ship, store and sell/market the car here ranges between 15-20% (not too high, not too low)

So that would be 12.5% + 15-20% = 27.5% - 32.5% of the 89.29% SRP. results in 60.27% - 64.74%

So I would say the approximate value before shipping is around 60-65% of the SRP we are buying it at.

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EDIT: Luxury vehicles have a completely different tax rate especially if they don't originate from Japan, Korea and ASEAN region. One of the main reasons why a vehicle like BMW is selling for double the peso value than what you can buy it at in the States.

[EQAddict]

Am sure dealer margins are in the double digits. Too risky for that much expensive inventory if your margins are single digits.

[philsat]

Ang 600k daw na car e pag kinuha sa planta e 450k lang daw yan..

[17Sphynx17]

Am sure dealer margins are in the double digits. Too risky for that much expensive inventory if your margins are single digits.

I would think that is the purpose of declaring the overhead storage/marketing costs to be part of the 15-20%.

Assuming the car is just flying off the dealer lots, then storage isn't a primary concern and marketing isn't needed to be done much so that becomes a part of their profit. They can't really mark up to high from what we could call a market standard as that would make them uncompetitive.

The only way they can really increase their margins is to make sure to push the product and sell as fast as they can to make sure inventory is moving out of their warehouse the moment it lands.

My two cents. So I am not going to the say the Honda Exec that stated in the TGPh article of 6% markup is unrealistic as I treat that as a general rule of thumb/standard accepted by everyone of their competition.

Hope that clarifies the stance.

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Edit 1: I also did not include any DI when a buyer opts for financing but that is at least 1% on top of regular SRP to a high of 5% for new hot models being sold in the market. So that is a way to pad up the profit margin of the dealers. =)

[17Sphynx17]

Ang 600k daw na car e pag kinuha sa planta e 450k lang daw yan..

philsat, mahirap gamitin ang haka haka o "daw" as basis. Kung may sources ka to post hindi kwento ni ganito ganyan sa akin ang ito, yun post mo.

If you see at least what I did to determine a more or less percentage, may basis naman kahit papano. So kung meron ka research to expand on or correct, that would be enlightening, kung meron.

[philsat]

philsat, mahirap gamitin ang haka haka o "daw" as basis. Kung may sources ka to post hindi kwento ni ganito ganyan sa akin ang ito, yun post mo.

If you see at least what I did to determine a more or less percentage, may basis naman kahit papano. So kung meron ka research to expand on or correct, that would be enlightening, kung meron.

Yan sir ay sabi ng aking friend na asa T brand..posible na mali yan.. Sabi sabi nga lang. Pero sure na hindi papa lugi ang dealer diyan..

[philsat]

Dapat kasi ang car pwd bilhin direct sa planta. Parang uratex lang.. Haha.. Mas mura pa. Dumadaan pa kasi sa dealer. Nag mamahal pa lalo..

[red_one]

Dapat kasi ang car pwd bilhin direct sa planta. Parang uratex lang.. Haha.. Mas mura pa. Dumadaan pa kasi sa dealer. Nag mamahal pa lalo..

Be realistic. Paano ka bibili ng car if ang planta ay nasa Japan, Thailand, Korea, US, Germany, etc? Kahit simpleng screw or bolt lang, may MOQ (Minimum Order Quantity) yan pag binili mo sa planta. Ilan car ba ang balak mo bilhin?

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Dapat kasi ang car pwd bilhin direct sa planta. Parang uratex lang.. Haha.. Mas mura pa. Dumadaan pa kasi sa dealer. Nag mamahal pa lalo..

Be realistic. Paano ka bibili ng car if ang planta ay nasa Japan, Thailand, Korea, US, Germany, etc? Kahit simpleng screw or bolt lang, may MOQ (Minimum Order Quantity) yan pag binili mo sa planta. Ilan car ba ang balak mo bilhin?

[philsat]

Be realistic. Paano ka bibili ng car if ang planta ay nasa Japan, Thailand, Korea, US, Germany, etc? Kahit simpleng screw or bolt lang, may MOQ (Minimum Order Quantity) yan pag binili mo sa planta. Ilan car ba ang balak mo bilhin?

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Be realistic. Paano ka bibili ng car if ang planta ay nasa Japan, Thailand, Korea, US, Germany, etc? Kahit simpleng screw or bolt lang, may MOQ (Minimum Order Quantity) yan pag binili mo sa planta. Ilan car ba ang balak mo bilhin?

Admin. Bantay ha. Ayaw ko ng gulo.
Sir diba may mga planta naman dito sa pinas? Dito na assemble.

[JR318]

Hahaha mam cathy bantayan mu si TS ha?

[red_one]

Admin. Bantay ha. Ayaw ko ng gulo.
Sir diba may mga planta naman dito sa pinas? Dito na assemble.

Di ba sabi mo sa other thread mo bibili ka ng Suzuki Swift. Question, saan assembled ang Suzuki Swift?

Konti lang ang car models na assembled sa Pinas. At tulad ng sabi ko, may MOQ pag bumili ka sa planta. Ilan ba balak mong bilhin?

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Admin. Bantay ha. Ayaw ko ng gulo.
Sir diba may mga planta naman dito sa pinas? Dito na assemble.

Di ba sabi mo sa other thread mo bibili ka ng Suzuki Swift. Question, saan assembled ang Suzuki Swift?

Konti lang ang car models na assembled sa Pinas. At tulad ng sabi ko, may MOQ pag bumili ka sa planta. Ilan ba balak mong bilhin?

[17Sphynx17]

I think for everyone especially the moderators who are seeing this thread, we have to at least have a consensus about what happens to threads like these.

To at least honor his statement with a reply, *philsat, kakabanggit mo lang, assemble. It is completely different from manufacturing which quite frankly we do not do. Most of the vehicles we get here are either CKD or CBU. So taxes and margins still apply. Wala tayong start from scratch dito, unless you count jeepneys with rebuilt engines. So before you say na dapat pwede makakuha direct sa planta ang isang buyer (in our market conditions na walang manufacturing ng parts) better study up first.

Anyway, if no one is against this idea. Let's give this thread 24 hours to see if there is any development of addition more enlightening info than just hearsay and statements that are not thought out.

If there is no more productive info arriving then we can close this thread because tax rates are mostly fixed til 2018 for the excise tax as per the agreements, e-VAT is not being discussed for increase or decrease for this item and there really won't be any car executive who will contest or divulge contrary information to the Honda Exec who mentioned the 6%.

Everyone cool with that idea?

Cheers!

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I think for everyone especially the moderators who are seeing this thread, we have to at least have a consensus about what happens to threads like these.

To at least honor his statement with a reply, *philsat, kakabanggit mo lang, assemble. It is completely different from manufacturing which quite frankly we do not do. Most of the vehicles we get here are either CKD or CBU. So taxes and margins still apply. Wala tayong start from scratch dito, unless you count jeepneys with rebuilt engines. So before you say na dapat pwede makakuha direct sa planta ang isang buyer (in our market conditions na walang manufacturing ng parts) better study up first.

Anyway, if no one is against this idea. Let's give this thread 24 hours to see if there is any development of addition more enlightening info than just hearsay and statements that are not thought out.

If there is no more productive info arriving then we can close this thread because tax rates are mostly fixed til 2018 for the excise tax as per the agreements, e-VAT is not being discussed for increase or decrease for this item and there really won't be any car executive who will contest or divulge contrary information to the Honda Exec who mentioned the 6%.

Everyone cool with that idea?

Cheers!

[philsat]

Di ba sabi mo sa other thread mo bibili ka ng Suzuki Swift. Question, saan assembled ang Suzuki Swift?

Konti lang ang car models na assembled sa Pinas. At tulad ng sabi ko, may MOQ pag bumili ka sa planta. Ilan ba balak mong bilhin?[/QUOTE



Ito ang sinabi ko sir.
"Dapat kasi ang car pwd bilhin direct sa planta. Parang uratex lang.. Haha.. Mas mura pa. Dumadaan pa kasi sa dealer. Nag mamahal pa lalo.."

Ito sagot mo sir.
"Be realistic. Paano ka bibili ng car if ang planta ay nasa Japan, Thailand, Korea, US, Germany, etc? Kahit simpleng screw or bolt lang, may MOQ (Minimum Order Quantity) yan pag binili mo sa planta. Ilan car ba ang balak mo bilhin?"

Ito reply ko ulit.
"Admin. Bantay ha. Ayaw ko ng gulo.
Sir diba may mga planta naman dito sa pinas? Dito na assemble."

Ito sagot mo.
Di ba sabi mo sa other thread mo bibili ka ng Suzuki Swift. Question, saan assembled ang Suzuki Swift?

Konti lang ang car models na assembled sa Pinas. At tulad ng sabi ko, may MOQ pag bumili ka sa planta. Ilan ba balak mong bilhin?.

Ito isasagot ko
We will buy suzuki swift this year. Pero alam ko sir na asa india ang planta noon.. Hindi din ako bibili sa india malayo sa laguna lang. ibang brand.
Isa lang bibilhin ko na auto. Pero kung pwd bumili sa planta mismo na parang uratex e baka dalawa. hehe..