Saturday, September 19, 2009

Buying and Selling Cars in Cambodia: Part Two

It took two days to sell the Mercedes as a private-party. I attribute the speed of sale to placing quarter-page display ads in the two English language newspapers in this city. Within the ad, I provided a blog folks could go drool over glam shots of the car. Having one of my best friends, Chean Long, the finest commercial photographer
in the Kingdom of Cambodia, didn't hurt. cheanlong.blogspot.com.
In the ad for the Mercedes, I gave two contact phone numbers, one for folks that wanted to speak English (you get me on the phone) and another number if you want to speak Khmer (you get my driver Sok Phea on the phone).
Over three days, we had well over 309-hits on the car blog, 45-phone enquiries, 10-follow up phone enquiries and 11-personal showings of the car. Most inquiries were from Khmer. 100% of personal showings were Khmer or Khmer/Chinese or other. The car sold to 'other', an accomplished local Singaporean businessman that I have come to respect.
While Sok Phea made himself busy with appointment after appointment, I made myself busy being a more informed replacement car buyer.
Cambodia does not make cars in the traditional sense. Every car in Cambodia is imported. For new and used cars entering the country that, 'look to be' in good condition and enter with a 'clear' title are taxed at 100% of value. Brutal.
But, if you import a damaged vehicle, the tax is lower. If 'Title' of the vehicle specifies the car is 'totaled' or of, 'salvage value', the tax is much lower still. That's where economics, practicality and labor converge making badly crashed, flooded or burned cars the perfect car to import to Cambodia.
When bad things happen to good cars in the Western world, there is a point where it is impractical to repair. One-hundred man-hours to repair at $35.00/hour often does not make economic sense to insurance companies.
Cambodia is a different animal. Take that same totaled car from the United States and place it in the hands of seven skilled guy's in Cambodia at $35.00/month and the math starts to really make sense.
In one month, Cambodians can take a five year-old disaster car and make it look nearly impeccable while big problems may surface just around the corner.
...to be continued.











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