Since its REAL quiet I thought I would copy a post here I did on poor but happy.
2 things relative to the importation of cars are being discussed.In the new free trade discussions with the US the possibility of lowering some of the taxes on importing cars has been discussed.Seems eliminating the taxes or allowing used cars not even being discussed.Wether anything will change we will see.
Also,A colombian friend told me that Colombia is considering allowing used cars from Venizuella in to a very limited area of Colombia near Venizuella,but not to be imported in to the rest of Colombia.
This might be similar to what is allowed in San Andres.The cab drivers there drive big  old chevy Impalas.A cab driver I used told me he was able to buy used cars from the US.He pointed out several while we were driving he had sold to other guys.Again not to be imported in to Colombia proper.
The basic rule is to be imported the car has to have zero miles,which might be a problem itself in  that new cars in US dealer inventory often have a few miles on them from being shuttled.They either turn them back or get around that somehow.Plus the car must be the current model year or no more than one year older.I think a 2004 if it was actually zero miles might be allowable.
To me this is an example of protecting someones territory while screwing the average citizen.GM,Mazda and some dealers are getting protected.The average citizen cannot afford a car.If used cars were as cheap as in the US alot more could.The other aspect is the additional tax due to engine size.Colombia wants to discourage gas consumption.That might be a better tact than huge additional gasoline taxes like alot of european countries.
Regular gas here is about 5400 pesos,$2.35 a gallon.Premium is alot more,7300 pesos,$3.17.And the quality may be inferior.I asked a guy trying to sell me a Honda civic what grade fuel he used.He said he mixed regular with premium.That car will run on US regular no problem.BUT,diesel is only about 3500 pesos,$1.52.In the US it is more than gasoline,my son pays $3 plus in California for his Ford turbodiesel pickup.Also lots of taxis run on LP gas,they have the special tank in the trunk.Apparently less costly than regular gas.
The other question is how much cheating might there be in importing cars?Do some get in no tax?Do they get the ID numbers of wrecked cars?Probably happens,people seem very creative in avoiding taxes,lots of electronoic stuff supposedly gets in duty free.
Which brings us to the last point.These tariff type taxes are a big source of revenue for Colombia.So protect your connected buddies and collect alot of tax.Not likely to change anytime soon.
Used cars are ALOT more here than in the US.Cars that would have been junked years ago in the US are still running around.My BMW I used on a recent vacation in the US I am trying to sell there for $17,000,2001 325i.It would be worth 115,000,000 pesos here according to a book I have,about $50,000.A 10 year old BMW 325,about $6000 in the states,$20,000 here.A 7 year old Honda Accord,about $8000 in the states,$24,000 here.
Another strange comparison.A new 2005 Jeep Grand Cherokee Limited,
119,000,000 pesos $52,000 if you get one made in Venizuella.161,000,000 pesos,$70,000 if you want a US built one.Seems Chavez's boys know how to screw one up.A price wouldn't be listed in my book if they don't sell them and nobody would pay more unless there is a quality difference.
Source of costs,Car and Driver magazine,Colombian version.

Pete

... in response to Mexico Does, posted by Michael B on Aug 25, 2005


I can see you now trying to explain to the local police, all that money stashed in the trunk...or, "I don't know nothing about that body"

... in response to Mexico Does, posted by Michael B on Aug 25, 2005

I used to be a car dealer in California.At the LA auctions the Mexicans were buying up all the junk.
And they perform a service in helping us get rid of our old tires.Tires that would be illegal to mount in the US go to Mexico where they get a few thousand more miles out of them.
In the US,at the charity auctions,where MADD or some charity sells cars that have been donated you can buy a running car for $100.In Colombia if it runs its probably worth at 3,000,000 - 5,000,000 pesos,$1500 - $2500.Some taxis are 80's Nissans with probably millions of miles on them.They just keep patching them up,running cars have value.In the US that car would get junked when it needed a $500 repair which might be a $50 repair here.
If you have a pensionado visa in Panama they let you bring in a car duty free every 2 years.I don't know if it has to be new.A person could drive it 2 years and sell it for a profit.Lots of good cars in Panama.Seems everybody has one and they are not affraid to just drive anywhere.But cost of living  in general is  more like the US than Colombia.
In Venizuela a few years ago the government added a big tax to gasoline.It had been like $.20-.30 a gallon.There were lots of used gas hog US cars that people drove,gas was so cheap.Then gas  tripled or so in price and ther people were whinning,they couldn't afford to drive trhe cars.
As a car guy I don't much like Colombian laws on cars.I have owned 100's of cars,I NEVER bought a new one in my life.Even after quiting the car business my personal car would be a BMW that was 6 years or so old that had 100,000 miles on it already.I would buy it for 20% what it cost new.People think a car is worn out at 100,000 miles.A good BMW is like new.My 1997 740i I bought in 2003 cost me $13,500.It cost $65,000 new and was close to new condition in my mind.It would still be a $40,000 car here in Colombia.It would cost about $130,000 new.
The guys who used to repair my BMW's when I was in the car business are still in business in Santa Clara,Ca.You see lots of old BMW's there.Guys just keep driving them.Guys who have money.My son just sold his 1985 535i that he used to pull with his motor home when he bought a 5th wheel RV.He paid $7000 for it in 1993.He sold it for $2000.12 years it depreciated $5000.That would still be a $7000 car in Colombia.
Another milage story.When I went broke in the car business in 1992 I went from driving a Porshe 911 Turbo to an old Dodge van.For 5 years I drove the van while I was very broke buying my way back in to my government retirement system.When I sold the Van it had 280,000 miles on it and still going,never had any engine work.A good BMW will probably go 400,000 miles before major engine work it its alot of highway driving.
I liked my little 2001 525i I drove 6500 miles this summer as well as any car I ever owned,better then the 740i which was too big for me.Better then all the Porsches I ever had.Since I was going to resell it I had to stay reasonable on the miles.It has 67,000 after I put 6500 on it.I wish I could have brought it here.I am trying to sell it for $17,000 there.Its worth $50,000 here.29MPG at 75 MPH.
I got my first car at 14.You could drive at 14 in Idaho when I was a kid.My dad gave it too me.1947 Ford Sportsman woody convertable.Its worth $130,000 now.I never much liked it.Too slow.My next car was a 1950 Olds 88.Stock it would outrun all my friends hopped up fords and Mercurys.Pissed them off.Basically if the car wasn't a 55 or newer my old Olds would take it.
Yes I am a car guy.To think  would EVER get by without a car was unthinkable to me.But I don't much need one here and it costs so much for so little in a car.

Pete

... in response to Re: Car guy ramble, posted by Michael B on Aug 27, 2005

I agree. Pete sounds like he knows quite a lot about the auto industry.

I have two Mitsubishi Montero's. My "new" one (2001) has 160,000 miles. The 1992 beater has 390,000 and admittedly, the engine is slowly dying but all else in great shape. If I spring for replacing the engine, it will cross that 500k mark some day. Its possible to purchase used engines from Japan. They have very strict emissions laws. By time a vehicle reaches about 50,000 miles it will no longer pass emissions testing. Must junk the vehicle or replace engine. They ship out the engines to the U.S. and I'm sure other countries. Last time I checked cost would be $2-3,000 installed. The trick is that attempting to find one for an older vehicle becomes more difficult.

I recall being in a taxi in Connecticut 10 or so years ago. The driver was bummed out because he thinks that the transmission may have to be replaced soon. Car had 400,000 plus miles. Don't recall brand.

The purchase of a new car is the single worst financial decision possible to make in the U.S.

... in response to Car guy ramble, posted by Pete E on Aug 26, 2005

I think there is more to this imported used car stuff than meets the eye.  

Two things:

The Toyota Camry was the top stolen car model for many years in the 80's and 90's.  On trips to the Dominican Republic, I have noticed that almost all the taxis in Santo Domnigo were old Toyota Camrys.

I had a colleague from Haiti who had friends who would help him ship his cars, that he didn't feel like driving anymore, to his relatives in Haiti.  When asked about the paperwork, he would just laugh and say "I give my friend $200 and he takes care of all that."  

Many cars stolen from the US end up in 3rd world countries.  I strongly suspect that the restrictions some countries have on importing used cars is the result of US pressure, at the behest of car manufacturers and insurers, with the aim of protecting the new car market here in the US.

... in response to Re: Re: Car guy ramble, posted by Pete E on Aug 26, 2005

[This message has been edited by doombug]

"But most Colombians  can't afford US drug prices,people would DIE because of things like this."

Look at it from the perspective of the drug manufacturers:  Are they not-for-profits?  Is it in their mission statements to research and market drugs solely for humanitarian reasons?  Maybe under bankruptcy protection they could pull this off, but then much of the incentive would be lost.

With such rulings as the recent $250 million Vioxx verdict in Texas (of course, AFTER the FDA had already approved the drug), it's no wonder drug manufacturers walk a very fine line.

... in response to Re: Re: Re: Car guy ramble, posted by doombug on Aug 28, 2005

They don't have to be altruistic, and they should make a profit, but they should also be honest. Question for you: If a drug cost $40.00 in the US and $4.00 in Mexico (the same drug, the same manfacturer, not a bootleg or knock off) is the drug company dumping in Mexico or price gouging in the US? If you  respond with the drug companies' usual defense of "Well, we have to recover our R&D cost SOMEWHERE and the people in the US are most able to pay", then you have done a darn good job of quoting the Communist Manifesto

... in response to Re: Re: Re: Re: Re: Car guy ramble, posted by doombug on Aug 29, 2005

Are you going to enforce people charging the same thing world wide?That sounds more like socialism.But the reason for the price differences is usually buracracy,taxes and turf protection.I would like to get rid of those and let the prices fall where they may.
The deal with drugs is once discovered,and processed through  a very slow FDA system,they can be produced very cheaply.Its the research but probably more so the buracracy that makes the initial expense high.So the drug company needs to recover its costs and make a profit.Even a big profit if they did something right.Fair enough.But if they decide to sell for a smaller profit to people who would not otherwise be able to buy that not only helps people but makes business sense.Of course we feel ripped off getting charged what the market will bear.And we will be doing end runs around them.It sounds silly but that is better then not selling the drugs to people who cannot afford them otherwise at a price that still includes a big profit.
I would limit any exclusivity on new Drugs to 5 years.And I would tell drug companies don't expect us to hurt our foriegn relations trying to protect your profits.
The drug companies could do just fine if we get the FDA off their backs.And when it comes to  protecting the life of a person or the profit of a drug company I will go for the person every time.
I AM a CAPITALIST.Its MONOPOLIES  I don't like.

Pete