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..