Excise Tax? When June 2017 or 2018?

[Verbl Kint]

The global standard of the profit margins of carmakers only has 15% as the highest rate. This is as per an executive of one of the luxury car brands here. I asked him about the profit margin rates. Here in the Philippines according to him, the highest profit margin rate is 15%

If you mean a profit margin of 15% on the SRP (for most cars) I would agree with you. In fact, autoindustriya and top gear ph use the same amount. However, for the purposes of getting the net manufacturer's price, the pre-VAT profit margin used by both is 20%.

Both sites also mentioned (published, actually) the percentage as a minimum rather than a max. Please check citations below:


https://www.topgear.com.ph/news/indu...-20170206-lfrm

"Profits in the automotive industry hover around 20% before e-VAT, or around 15% of the total price, with 10% typically going to the distributor and just 5% going to the dealer."

"It’s also important to note that profit margins can be higher than the assumed 20%. Top-of-the-line variants loaded with toys enjoy bigger margins than stripped-down models, while in-demand exotics can even command margins as high as 50%!"



https://www.autoindustriya.com/featu...of-excise.html

"Dealer margins or profit margins are, much like NMISPs, closely guarded secrets of the car companies. Our confidential contacts within the auto industry tell us that a conservative profit margin is 20%, though it could be higher. For the sake of our calculations, we applied the 20% margin across the board to come up with hypothetical MSRPs to illustrate how much prices would increase for the consumer."

Sent from my SM-G955F using Tapatalk

[numbah5]

If you mean a profit margin of 15% on the SRP (for most cars) I would agree with you. In fact, autoindustriya and top gear ph use the same amount. However, for the purposes of getting the net manufacturer's price, the pre-VAT profit margin used by both is 20%.

Both sites also mentioned (published, actually) the percentage as a minimum rather than a max. Please check citations below:


https://www.topgear.com.ph/news/indu...-20170206-lfrm

"Profits in the automotive industry hover around 20% before e-VAT, or around 15% of the total price, with 10% typically going to the distributor and just 5% going to the dealer."

"It’s also important to note that profit margins can be higher than the assumed 20%. Top-of-the-line variants loaded with toys enjoy bigger margins than stripped-down models, while in-demand exotics can even command margins as high as 50%!"



https://www.autoindustriya.com/featu...of-excise.html

"Dealer margins or profit margins are, much like NMISPs, closely guarded secrets of the car companies. Our confidential contacts within the auto industry tell us that a conservative profit margin is 20%, though it could be higher. For the sake of our calculations, we applied the 20% margin across the board to come up with hypothetical MSRPs to illustrate how much prices would increase for the consumer."

Sent from my SM-G955F using Tapatalk

Kaya nga I had to ask the executive about the profit margin rates di ba? I had to ask him so I’ll know how they earn through their profit margins, especially because of the impending new excise tax rates. The executive knows because he’s one of the people running the luxury car brand distributor and he knows what he told me.

[dr. d]

i was informed, some years ago, that casas make significantly more money from maintenance and repair services, than from selling cars.

[StockEngine]

i was informed, some years ago, that casas make significantly more money from maintenance and repair services, than from selling cars.

mega millions daily for the usual 5000km interval... toyota pasig has about 20 Car bays? if they can service 500 wallets in a 12hr shift, and use that 25000km(that cost 24k) example by one poster.

imagine the 8figure cash flow....

Sent from my SM-G935F using Tsikot Forums mobile app

[regjesmom]

i was informed, some years ago, that casas make significantly more money from maintenance and repair services, than from selling cars.

this is correct.

[StockEngine]

and it doesn't look too bad...

need to see this mb x series locally :D

Buy or Do Not Buy: The Possible Effect of the New Vehicle Excise Tax on 42 Vehicles | Philippine Car News, Car Reviews & Prices - ************

[predo]

Due to long wait times for some vehicles, if I purchased now and delivered next year, am I protected with the excise tax?

[pobre24]

Due to long wait times for some vehicles, if I purchased now and delivered next year, am I protected with the excise tax?

Unfortunately, you won't be able to purchase without the physical vehicle. Purchase documentation requires some vehicle details/numbers. Means no documentation can be facilitated to lock in the price. I actually tried doing this before. hehe

[falken]

i was informed, some years ago, that casas make significantly more money from maintenance and repair services, than from selling cars.

It is correct, and that's why certain casas shorten the time in between PMS.

[supadude]

I think mga mechanic nila that do change oil are interns or baguhan palang kasi i usually see na may supervisor nag tuturo sa mga eto kung ano gagawin parang teacher lang sa class. un mga students may kanya kanyang materials (which is cars) tapos yun teacher iikot to supervise what the students are doing. kaya nga hinde porket casa pinagawa yun car sigurado na quality yun gawa, minsan mas maganda pa sa trusted mechanics sa labas.

not sure if that is still the case now.