Prices of second-hand commercial vehicles soar amid TRAIN
Prices of second-hand commercial vehicles have
risen by as much as Php150,000, a result of the Tax Reform for Acceleration and
Inclusion Act (TRAIN).
This was revealed by top buy-and-sell website OLX based on second-hand commercial vehicles ad
postings on the portal, from January 2017 to April 2018. Speculations on the
TRAIN Law fuelled the price increase on the 3rd quarter of 2017 and continue
long after it was implemented early this year.
The TRAIN Law has influenced the resale value of one to two-year old
cars with an average increase of P90,000. Among these are units with original
retail price of P1million and above such as Toyota Innova, Honda CR-V, Toyota
Fortuner, Mitsubishi Montero and Ford Everest.
The first tax reform package of the present
administration, the TRAIN Law provides for the increase in take-home pay of
Filipino workers by reducing income tax rates while increasing and
rationalizing tax rates in other goods and services. For automobiles, TRAIN
simplifies excise tax but lower-priced cars continue to be taxed at a lower
rate while more expensive cars are taxed at a higher rate.
“The data we released is our way of guiding buyers
in determining which second-hand vehicles have significantly increased in
price,” says OLX Head of Cars Xervin Maulanin. “This will also help them
evaluate the difference in buying pre-owned versus brand new cars.”
Meanwhile, no significant effect can be seen on
prices of entry level passenger cars like Toyota Vios, Honda City and Hyundai
Accent.
Additionally, Maulanin also notes, “Despite talks
about the TRAIN Law in the third quarter of 2017, the demand for second-hand
cars continued to increase.”
Even with the price hike, OLX’s data indicates a
steady market for pre-owned vehicles, from high-value to entry level, as the ad
posting for second-hand vehicles continues to be on the upswing.
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