Used Car Market to Suffer Loss

COLOMBO: The expense of importing utilized engine vehicles will go up after the ministers received new auto importation and valuation rules. The senators consented to uphold the new guidelines, including institutionalized devaluation rates. This will ultimately affect the used car market, which otherwise claims a substantial portion of car sales in Sri Lanka.

According to the new rules, the depreciation of the vehicles imported will depend on the age of vehicle from the date of registration. The new rules have been benchmarked with those of the other countries like Ghana and Ethiopia. Even Kenya and Tanzania utilize practically comparative valuation routines that include deciding the present retail offering cost for the fresh out of the box new engine vehicle in the local business sector. Simple accessibility of money, and rising pay levels are empowering the dispatch of new auto models which have been prompting an astounding development of the business. Moreover, the section of different global players has likewise had a positive effect on the utilized auto market as well. Accordingly, the interest for pre-owned cars is expected to keep on growing at a dynamite rate but such sudden change in government policies are bound to affect this market negatively.