Lock your car doors when in Zambia. My good friend advised me from the beginning to lock my car doors before driving off. I took this advice seriously and everyday, without fail, I locked the car doors. I didn’t realize how good this advice was until I was stuck in traffic in the markets area on Lumumba Road one particular day. Two youths approached my car and tried to open the doors. The doors were locked but they kept lifting the door handles in the hope the doors would open or perhaps I would unlock the doors unwittingly. It took me a few seconds to realize they wanted to rob me. I simply remained calm and waited for them to give up and go away. I was double lucky in that all my windows were up at the time. From that time on, I only drove with the windows slightly down but not enough for anyone to put their hands inside. I also heard, that some people who had their doors locked, had panicked and unlocked the doors allowing the people to open the doors and rob them. The trick is not to panic. Remain calm, see if you can drive your vehicle out of its spot, and sound the horn to scare them off. I also thought of reaching for the glove box pretending to pull out an imaginary pistol to scare them away. But whatever you do, keep your doors locked and don’t panic. They will go away eventually.
Driving in Lusaka (part 1)
I had the pleasure of spending 4 glorious weeks in Zambia in October and during that time, I leased a Honda CR-V 4WD vehicle.
I stayed in Makeni and traveled along the 4km stretch of road that was being upgraded (I wonder if they finished it by now). The 4WD vehicle came in handy as that road in Makeni deteriorated with the early rains mid-October. As I traveled that road twice a day, I couldn’t help wondering why so many people drove their vehicles so slowly over the bumpy roads. I would have thought most Zambians know by now that you get a smoother ride if you drive your vehicle slightly faster over the bumps. It also means less wear and tear on your suspensions. Of course some bumps are too deep or high to travel over at slightly faster speeds, so discretion is necessary on these type of roads. But for the most part of that road, it is better to drive your vehicles at a slightly faster speed over the bumps to get a smoother ride.
Mozambique Pre-shipment Inspection for Used Vehicles
We have been advised that NEW PSI Program becomes effective on 3rd November 2011.
Used vehicles (for which subject to PSI) already applied PAF or will be applied PAF by 2nd November, scheduling PSI on/after 3rd November, and applying PAF on/after 3rd November, will be all subjected to New Program.
All Used Vehicles exported to Mozambique will be subject to PSI, and the exporter will be required to pay the inspection cost at $265 (plus 5% Consuption Tax) per a vehicle.
| Implementation of the New Law | : | 19th October 2011 |
|---|---|---|
| New Program becomes effective on | : | 3rd November 2011 |
| Inspection Fee | : | USD $265.00 (plus consumption tax) per vehicle |
| Payment Terms | : | Full Advance Payment / Bank Transfer |
Upon receipt of inspection request, we will issue to invoice for inspection fee for your payment to us.
(Exchange Rate: Average T/T selling posted rate of previous month will be applied.)
Used Car Import Ban Suspended in Zimbabwe
Used car import ban suspended
Nicholas Goche
GOVERNMENT has indefinitely suspended the ban on used car imports that are five-years-old and above while the importation of Left-Hand-Drive vehicles will not be allowed from November 1 this year.
The bans are provided for in Statutory Instrument 154 of the Road Traffic Act.
No Left-Hand-Drive vehicle will be allowed into the country from next month.
But those already in the country and those to be imported by October 31 will be allowed to continue plying the country’s roads until they outlive their economic lifespan.
The new arrangement will be provided for in the amended Statutory Instrument to be gaze-tted soon.
Transport, Communications and Infrastructural Development Minister Nicholas Goche yesterday told journalists that after consultation on the proposed ban, Government had decided to lift it until the economy improves.
When the ban was introduced, the minister said Government expected that the economy would have improved and that capacity utilisation by industry by end of 2009 would be around 60 percent.
“We thought the motor industry would have improved as well and producing more vehicles, but we realised that improvement has been slight,” Minister Goche said.
“We had also hoped that banks and other financial institutions would make money available for capitalisation because there is still a liquidity crunch, industry, commerce and individuals don’t have the money.
“Therefore, all these facts were taken into consideration during consultations because the situation hasn’t improved. We have been persuaded to suspend the aspect of the S.I (statutory instrument) to do with the importation of second hand vehicles until there is an improvement of the economy.”
Minister Goche said the Government had also rescinded its earlier decision to force the change of Left-Hand-Drive vehicles to Right-Hand-Drive by December 31, 2015.
“We have made concessions that those Left-Hand-Drive vehicles already in the country remain and live out their economic life.
“From November 1, we are going to restrict the importation of Left-Hand-Drive vehicles whether new or old but for those which are already here, owners won’t be forced to change them to right-hand,” he said.
Government, he said, would continue monitoring the economy to see when it could be viable to effect the ban.
Transport operators and the general public had challenged the promulgation of S.I 154 of the Road Traffic Act.
The Transport Operators Association of Zimbabwe threatened to take legal action against the legality of the ban on LHD vehicles.
TOAZ argued that the vehicles were lawfully permitted in Zimbabwe by the Road Traffic Act 13:11 of the third schedule. The association argued that imported LHD vehicles were cheaper than locally-assembled ones.
During a public hearing convened by Parliament recently, members of the public argued that the ban would make it impossible for the working class to own vehicles.
They said imported vehicles were cheaper and readily available compared to those produced by local car assemblers.
Zimbabwe is among major importers of used Japanese cars in Southern Africa.
Small used cars imported from Japan cost around US$5 000, including duty if directly imported and around US$6 000 if bought from an importer.
Most people cannot afford new imports or new locally-assembled vehicles.
The cheapest locally-assembled brand new car costs over US$20 000.
Used cars from Zimbabwe and South Africa are also expensive as the owners demand more on disposal.
Reposted from Used car import ban suspended – The Herald Online
Lloyd Gumbo Herald Reporter
Wednesday, 05 October 2011 00:00
Zimbabwe Ministers Set to Abandon Planned Vehicle Import Ban
Goche to scrap car import ban
MINISTERS are set to abandon plans to ban the importation of second hand vehicles older than five years after near universal public objections.
Transport Minister Nicholas Goche will make a statement within days announcing a policy U-turn.
The proposed ban, set to take effect on November 1, has seen a spike in vehicle imports as thousands race to beat the deadline.
But the proposals, which ministers said were aimed at protecting the environment and improving road safety, have been criticised by members of the public, MPs and other senior government officials including Deputy Prime Minister Arthur Mutambara.
Now Goche is ready to pull the plug in a major climbdown, sources said.
“The government has listened to feedback from public consultations and it has become abundantly evident that this ban is very unpopular,” a senior transport ministry official revealed.
Goche has also been privately lobbied by MPs and ministers to abandon the plans – originally proposed by Environment Minister Francis Nhema.
Publicly, officials insist that the deadline, which should have taken effect at the end of March this year before beign pushed back, still stands.
With Zimbabwe’s car manufacturing industry virtually dead, ministers have struggled to justify banning cheap vehicle imports.
The Zimbabwe Revenue Authority [ZIMRA] had also warned that the ban could cost the government millions of dollars in lost revenue. The duty on vehicles over five years old is more than double the price of the car.
ZIMRA is currently clearing over 450 vehicles daily through Plumtree and Beitbridge border posts.
Reposted from Goche to scrap car import ban – New Zimbabwe
Staff Reporter
Tuesday, 27 September 2011 00:00
Zimbabwe Government Still Undecided on Import Ban of Used Cars
It appears the Zimbabwe Government is still in two minds as to what to do with the pending policy banning the import of used vehicles over 5 years old. It is good that they will take good time up to Oct 31st to deliberate on this policy, but the way it appears, the Minister for Transport is avoiding criticism for now by leaving hope that the policy may change after all.
It is all our hope, the Used Car Exporters and the Zimbabweans, who hope the ban is quashed and used car imports is allowed for the good of the country’s economy and environment, not to mention the safety factor as well.
My last plea to the Minister and the Zimbabwe Government, please consider the people of Zimbabwe when making this decision.
James Hanna
Nichibocars, Japan
For more information, check out our other blog posts
http://blog.nichibocars.com/2011/09/zimbabwe-used-vehicle-import-ban-deadline-to-stay/
http://blog.nichibocars.com/2011/05/zimbabwe-used-car-import-regulation-deferred-to-oct-31st/
Zimbabwe Used vehicle import deadline to stay
Used vehicle import deadline to stay
GOVERNMENT says there will be no further extension to the October 31 deadline banning the import of vehicles more than five-years-old as sufficient time has been given to all motorists and car dealers.
Transport, Communications and Infrastructural Development Secretary, Mr Partson Mbiriri, yesterday said the statutory instrument giving effect to the regulations was a bitter pill that the country should swallow to avert road carnage.
Addressing journalists on the implications of the regulations, Mr Mbiriri said many lives have been lost due to road carnage. This, he said, prompted Government to take decisive action. “I believe this is one bitter pill we have to take as a nation to avert the menace on the roads. We believe we have given people ample warning and I am not aware of any intention to extend the deadline,” said Mr Mbiriri.
“On left-hand vehicles, it’s controversial but very necessary. We are not inventing the wheel, but it’s standard in many countries.”
Some of the regulations whose deadline end next month include the prohibition of registration of left-hand vehicles, the need for headlamps to be fitted on heavy motor vehicles and the prohibition of registration or use of vehicles whose width exceeds 2,65 metres.
Other regulations such as the need to carry triangle reflectors, jack, spare wheels among others came into effect in July this year, while the Government has allowed left-hand vehicles already in the country to run their full lifespan. Mr Mbiriri said the regulations were in conformity with Sadc harmonisation of Vehicles Standards and came as a result of wide consultation. Angola, said Mr Mbiriri, pegged three years as cut off period for vehicle imports, while South Africa banned imports of second-hand vehicles.
He was asked whether there had been consensus on the provision since they had deferred the effective date to October saying they wanted to allow consultations.
“It became apparent that we are being fairly reasonable. I don’t think it’s possible to have consensus particularly on the importing of vehicles irrespective of the impact it has because self-interest will come into play. We should not shy away from what we see as self evident,” he said.
The motive behind the regulations, said Mr Mbiriri, was to save lives as research had sho-wn that left-hand vehicles caused accidents owing to sideswipes and head-on collisions.
He said it was debatable, which should come first, capacitating the local industry or introducing the regulations to protect the local industry.
“It is kind of a chicken and egg scenario, which one comes first. They can only be cheaper if more of them are being assembled locally. We can’t think of exporting vehicles when we are producing a handful,” he said.
The local motor industry, said Mr Mbiriri, would never flourish as long as the country was allowing imports, a scenario that has seen Zimbabwe become a market for second-hand vehicles from countries making cars.
“In the reform process, my Ministry is, however, aware of the need for a multi-sector and holistic implementational approach which gives total consideration to the country’s economic performance and the prevailing low salary earnings thereof, the inherent road safety considerations, but certainly within the context of regulations and international best practices,” said Mr Mbiriri.
Reposted from Used vehicle import deadline to stay – The Herald Online
Zvamaida Murwira Senior Reporter
Friday, 09 September 2011 02:00
You Get What You Pay For
When I was young I remember buying a pair of sports shoes from a shoe store. I went into a clothing store afterwards looking at some clothes. The store owner asked me how much I paid for the shoes and I told him $25. He quickly told me that he could have sold me the same shoes for $15 and that his store was cheaper than any other store in the street. Only problem was he didn’t have any stock at the time and it didn’t matter to me since I already bought my shoes. However, I told my brother who immediately went to the store to order the same brand shoes. The owner told my brother he could order the shoes in but the price would be $30. My brother asked why the owner told me he could get the same model shoes for $15. He said he made a mistake. Very convenient, but what it taught us was that tricky businessman can tell you any price for a product they don’t have or don’t intend to sell. They only want you to believe they are the cheapest in town and get your money. It’s a ploy that many tricky businesspeople use.
The same goes for used car exporters in Japan. Those exporters that only portray auction photos are only quoting prices that are intended to get your money in first, then they worry about what car to send you, or whether to send a vehicle at all.
You go into a Dollar Store and buy something cheaper than what you would normally pay up to 10 times the value. You know the product is not going to be of good quality and likely won’t last long. But as long as it does the job you want it to do before it breaks, then you don’t mind wasting that one dollar. After all, it is only one dollar. But how would you feel if you send money for a used Japanese vehicle for less than half the actual market price. Do you still expect to get the same quality vehicle as a similar model that costs twice the price at genuine exporters’ websites? What if the vehicle you receive (if you receive a vehicle at all) breaks down within 3 to 6 months after receiving it? Do you still not mind wasting say US$2,000 since it is only half the value of a genuine quality used vehicle?
It’s amazing the number of people I know who actually expect to receive a good quality vehicle for less than half the price of a genuinely priced vehicle. The disappointment I see when they receive a totally different vehicle, or a vehicle that has traveled over 200,000km, or the engine broke down on their way back home from the port. One of my clients in PNG phoned me to tell me of a person there who ordered 8 vehicles from a cheap exporter in Japan. Apparently all 8 vehicles were either seriously accident damaged, or such high mileage that the engines were making bad noises, or some just couldn’t even be started. I was told he cried at the wharf when he realized he wasted his hard earned money on inferior quality cars. My client told this person: “you get what you pay for”.
It’s alright if you go into a dollar store and buy something that is inferior. It’s only one dollar. But you should think twice about buying a used Japanese vehicle that is half the price compared to similar models at genuine exporters’ websites. Are you really prepared to risk throwing away good money just like that?
James Hanna,
Nichibocars,
Nagoya, Japan
Which Used Car Exporters to Avoid
One thing that sticks out in all the recent used car export scams is the fact that people who lost their money, lost it to small time operators or little known operators. I remember in the old days, reputation was the big key point when people made decisions to buy a vehicle direct from Japan. It used to be so difficult for any new exporter of used Japanese vehicles to break into a market. It required years of hard fought marketing by the exporter before they could establish a good reputation and sell a good volume of vehicles in a new market. In the old days, only 2 or 3 companies were successful in selling used vehicles from Japan direct to the end-users in large volumes. Nowadays, the end-users put their trust in almost any exporter as long as their prices are the cheapest in Japan.
I’m suggesting that everyone needs to go back to the ways of the old days. You need to be very careful who you are dealing with. Just because some exporters can display unbelievably cheap prices for used vehicles doesn’t mean they should be allowed into a market so easily. You need to make them work very hard for their reputation before you start trusting them. Only genuine used car exporters will tough it out and wait for a year or two before they can make it big-time in a market. If you make it easy for new exporters, then you open the door for anyone to come in and take advantage of you all.
Even if a new-comer exporter’s prices are reasonable, it’s not always going to be a safe deal. One client who responded to my previous article relayed the story of how he sent money to a one-man exporter for a truck which was to be bought at an auction in Japan. This particular exporter went to the trouble of delivering the vehicles to his stockyard from the auctions by himself to save on transport costs. Unfortunately, he smashed the truck that he bought for his client during the delivery. The exporter didn’t have insurance (again, saving on costs), and didn’t have any savings to refund his client (or buy a replacement truck). The exporter apologized to his client but the client still lost all his money.
The major exporters of used Japanese cars, the genuine ones, have all the logistics covered, including insurance. The genuine exporters have been doing this business for more than 20 years and have covered all the risks and logistics properly. We have systems in place from the time when a vehicle is checked at the auction, up till the point where the vehicle is handed over to you. We know more about our clients’ needs and satisfaction, it’s not just about selling cars.
In my 14 years experience in this business I have seen the following happen:
- vehicles stolen from stockyards in Japan
- vessels that have sunk losing all the vehicles on board
- vehicles that were lost by the shipping companies (offloaded at the wrong port by mistake)
- a vehicle was accidentally dropped into the ocean whilst being offloaded (lift on-lift off vessel)
- vehicles shipped on CIF basis but no marine insurance coverage actually paid for by the exporter
- fake exporters taking money for orders but not delivering vehicles
- vehicles sent to clients with blown engines (and other mechanical problems)
Genuine used car exporters usually have all this covered and won’t leave their clients “holding the bag” when something goes wrong. A genuine exporter is very concerned about their clients’ satisfaction. Genuine used car exporters depend on long-term business and need to protect their reputations. A small exporter or new-comer exporter is only interested in profits. Their smaller margins mean they can’t afford to insure their vehicles or provide security for vehicles or compensate for broken down vehicles.
Ask local clearing agents or your local Embassy in Japan about which exporters are reliable to deal with. Always be suspicious of exporters advertising prices that are very much cheaper than the more established genuine exporters.
Always take into consideration the old saying: “you get what you pay for”.
James Hanna,
Nichibocars,
Nagoya, Japan
Used Japanese Car Market Values
I’m sure many of you are confused by the differences in market values of certain types of used Japanese vehicles, and their current upward fluctuations. It is true that some of the more reputable used car exporters have increased their prices whilst other relatively unknown exporters are still displaying prices that are very much cheaper than current market prices. This article will provide the facts to answer those questions; which prices are real, where is the current market value, do we wait or do we buy now, and why are some prices unbelievably cheaper than other exporters?
At present, most of the good quality used Japanese vehicles are being sold for at least 25% more than six months ago. The main reason for this is the increase in demand for good quality used Japanese vehicles to replace the damaged or lost vehicles in the earthquake devastated areas in the East of Japan. This demand is expected to stay high for a few more months, and maybe longer.
On top of this, the US$/Yen exchange rate has changed a lot recently also adding to the increase in the US$ price tag. The US$ has also weakened against many other currencies making the value of used vehicles more expensive in terms of local currencies. The biggest problem with foreign exchange rates is that nobody can predict the direction of the rates, so there is a risk of paying more if the exchange rates get worse. But then again, the exchange rates can move in your favour over time. As I mentioned before, no one can predict the direction of the rates.
So the question, do we wait or do we buy now is totally your choice. My suggestion, if you have the funds, and you need a car, then don’t wait and don’t worry what will happen to the values after you purchase. Many people keep thinking that if they wait a little longer they can save more. Many people who think like that are always waiting and never end up buying anything for fear of paying too much. Just be happy with the value you purchase and don’t worry about what happens afterwards. When you think of it, the cheapest used vehicle is “free”, but that is never going to happen.
So what about the difference in prices? Why is it that some exporters can advertise a Toyota Camry for US$1,055 and other exporters are advertising the same model for US$1,800 (or more). The so-called “exporters” on Tradecarview use a computer program for pricing vehicles that they are downloading from the used car auctions. The problem with the computer programs is that they calculates the average market price without taking into account the grade condition, the mileage, and the type of model of the vehicle. For example, a grade “0″ vehicle is usually for accident vehicles sold as is. The prices of these vehicles can be as low as US$200. These vehicles are usually purchased for parts only. Some vehicles that have done over 200,000km are in very poor condition and wouldn’t last more than 6 months overseas. These vehicles can sell up to 50% cheaper than genuine good quality used cars. Genuine exporters are not interested in these vehicles as it does nothing for our reputation. On top, some vehicles are manufactured to different grades, some being more luxurious and hence more expensive to purchase. For example, a 7 seater Toyota Prado sells for a lot more than a 5 seater Toyota Prado. Again, the computer pricing programs being used by these so called “exporters” on Tradecarview don’t take this information into calculation, and hence their prices are nowhere near the actual current market values. They don’t care either since most of these exporters don’t own the vehicles anyway. Once they receive your money they send you what they can afford within the budget received, or they send nothing at all. Their target is to get your money in first, and worry about the supply of a “vehicle” later. They have no desire to fine tune their pricing programs since it works for them to get as much money in as possible.
Unfortunately, many buyers see the “false market values” and even though they don’t trust these so called “exporters”, they can’t help but look for similar models at the same prices on genuine exporters’ sites. They then become confused when they can’t find similar models at these ridiculously cheap prices and start to wonder if they should take a risk with the unknown exporters. You’ll never find ridiculously cheap prices for genuine used vehicles on genuine exporters’ sites. Genuine exporters are in the business for long term, not for a get-quick-rich plan. We need to make profit in order to survive. That’s what business is all about.
Therefore the actual current market value of a genuine good quality used Japanese vehicle can be found by looking at the genuine exporters’ websites. I’m sure you know well who we are, if not, ask some local clearing agents, or your Embassies in Tokyo.
I recently met some people in Papua New Guinea who fell victim to this false market value scam. Most of them ordered a Toyota Camry or Vista from these relatively unknown “exporters” at US$1,055 FOB value and received a totally different vehicle. One person received a Nissan Presea in replacement for his order without his approval. Another person received a Toyota Starlet of much older year and higher mileage to what he ordered. The victims weren’t told what they were receiving until the vessel arrived in port, so they had no choice but to accept what they were given. And of course, some people didn’t even receive a vehicle. They were so disappointed to discover they fell victims to the “false market value” scam.
It’s easy to get caught up in greed looking for the cheapest vehicles available for re-sale to make a big profit. Greed is what makes the scams successful. Some people I know in Mozambique who got caught by the “false market value” scam told me they were going to re-sell the vehicle and double their money once the vehicle arrived. But no vehicles arrived and their money was lost, all of it.
To avoid the scam, do some research on prices with genuine used car exporters. Ask yourself, why would an “exporter” sell a similar model vehicle for almost half the price as the genuine exporters. As a business person, one doesn’t need to lose so much profit by selling a product for half the price as their competitors. It is just as good a sale if the price is a little bit cheaper than other exporters, meaning the extra margin earned is more profit for your business. As a business person, this is how one thinks. As a con artist, you work on peoples’ greed.
Also, as I have always suggested in previous articles, ask for a copy of the Export Certificate and more photos of the vehicles to prove it is genuine. The Export Certificate is going to show you the real year of the model and the last recorded mileage of the vehicle at its last inspection. The Export Certificate is also proof that the exporter actually owns the vehicle. If they don’t own the vehicle they won’t have a copy of the Export Certificate. Only the current owners of the vehicle have the Export Certificate.
My final recommendation to those who have fallen victim to the “false market value” scam, don’t give up and do nothing to retrieve your money. Keep a copy of all your communications with the “exporters” and photos, etc. send the whole files to your Embassy in Tokyo, and let them do whatever is possible to get a refund or compensation for you. Get back at these con-artists and show them they can’t get away with this scam so easily if you have already been caught. Put the pressure on so that your fellow country-man doesn’t get caught too.
A good quality used vehicle purchased direct from Japan is a very good purchase of very good value. Don’t let greed spoil what should be one of your most prudent purchases in life.
James Hanna,
Nichibocars,
Nagoya, Japan