South African car dealers have started reducing prices of pre-owned vehicles mainly from Japan, Singapore and the United Kingdom at Beitbridge Border Post as they battle to clear huge stocks which have been necessitated by low business in the last five months.It is also understood that the high rates of import duty on vehicles at Beitbridge had also resulted in many people preferring to use alternative ports such as Kazungula, Plumtree and Chirundu where the duty is relatively low.
A snap survey over the weekend revealed that most of the car dealers on the South African side of the border have cut prices by between $300 and $900. On average one needs at least $3000 to get a modest car from dealers on the South African side excluding duty.
The dealers have reduced the prices to between $1, 700 and $2,000. Import duty for most of the second hand vehicles is charged at 96 percent.
Major dealers started reducing prices last month to create space for new stocks from Durban.