More second-hand luxury sports cars being imported
Grey imports bearing Bentley, Porsche badges jumped the most last year
By SAMUEL EE 06 February 2010
The number of parallel-imported (PI) cars may have plunged to a four-year low last year, but the proportion of premium models accelerated. High-end PI sports cars - most of them used - spiked in 2009. But authorised dealers are far from worried; in fact, their reaction is mixed.
Grey imports bearing the Bentley and Porsche badges jumped the most last year (see table). The authorised Bentley distributor, Malayan Motors, registered 24 units, while PI operators collectively sold 21. This means 47 per cent or almost half of all Bentleys sold in Singapore were PI units. In contrast, the ratio in 2008 was 36-to-5 respectively, or 12 per cent PI cars.
For Porsche, official importer Stuttgart Auto moved 222 units in 2009, versus 81 PI cars - meaning a quarter were PI cars. In 2008, the numbers were 265 and 62 respectively.
Asked if the numbers were a concern, Andre Roy, group managing director of Wearnes’ automotive division, whose Malayan Motors represents Bentley, said: ‘The answer is yes and no. On the positive side, we are pleased with the growing demand for Bentley. It shows we’ve done a good job investing in the brand and business over the past 78 years.’
Mr. Roy said what worries him is that PI operators may not be giving potential buyers the full picture. ‘For example, the customers may not be told that, as per Bentley policy, vehicles exported outside of their designated market are no longer eligible for factory warranty coverage, or given the full or correct service history,’ he said.
Also, the cars may not have been built to Singapore specifications. Still, Mr. Roy said these PI sales have not really affected his business.
In fact, Porsche Asia-Pacific managing director Christer Ekberg expects the number of PI cars to fall over time.
‘The number is on the high side but I am not really concerned except for the importer and his investments,’ he said. ‘Competition is always good but only as long as the cars are imported in the normal legal way, with all taxes paid and the invoice value of the car correct. But we know this is not always the case.’
Mr. Ekberg said Asia’s high import duties and taxes on cars create ‘a market for tax evasion’. However, he said he has ‘full faith in Singapore’s legal system, and the way the Customs department is handling it is fantastic’.
He added: ‘I wish this would be the case for every country in the world.’
Lamborghini Singapore boss Melvin Goh is also concerned about the rising number of PI cars, even though they are relatively small for the Italian exotic manufacturer.
But Mr. Goh is not unduly worried because ‘those who buy a car like this usually buy into a lifestyle’.
‘Those who get it from a PI operator will not enjoy the full experience, including customer events,’ he said.
Last year, 7 per cent of the 54 Lamborghinis registered in Singapore were PI units. But this was a jump from zero the previous year.
Once reason for the relatively high number of luxury PI units last year is that most were brought in used. Although no data is available, anecdotal evidence seems to support this in the case of Bentley and Lamborghini. Porsche was affected to a lesser extent because the majority (more than three-quarters) are believed to be new.
The main attraction is, of course, price. For example, PI operator Vincar, which sold six Bentleys last year, said one of these (a mid-2009 GTC convertible) was transacted at $630,000 in October - or more than $200,000 less than the price of a new car then.
‘Demand is good because of the price and because there are not many second-hand units in the market,’ said Vincar director Vincent Tan. ‘If there are second-hand units, the prices are still high. So people turn to used imports.’
Importing used luxury cars became more attractive after the Land Transport Authority (LTA) allowed them to be eligible for the scrap rebate from September 2007. They have to be under three years old and incur a used car surcharge of $10,000 in addition to the usual registration taxes.
The cars are sourced from Japan and the UK, and Vincar is one of about 10 PI operators dealing in such vehicles. Mr. Tan said the used luxury market suffered in the first half of 2009 because of the financial crisis, but started picking up in the third quarter. ‘For 2010, it looks like demand in the used luxury segment should be sustained, although the general PI market will suffer because of higher COE premiums,’ he said.
3 comments:
More second-hand luxury sports cars being imported
Grey imports bearing Bentley, Porsche badges jumped the most last year
By SAMUEL EE
06 February 2010
The number of parallel-imported (PI) cars may have plunged to a four-year low last year, but the proportion of premium models accelerated. High-end PI sports cars - most of them used - spiked in 2009. But authorised dealers are far from worried; in fact, their reaction is mixed.
Grey imports bearing the Bentley and Porsche badges jumped the most last year (see table). The authorised Bentley distributor, Malayan Motors, registered 24 units, while PI operators collectively sold 21. This means 47 per cent or almost half of all Bentleys sold in Singapore were PI units. In contrast, the ratio in 2008 was 36-to-5 respectively, or 12 per cent PI cars.
For Porsche, official importer Stuttgart Auto moved 222 units in 2009, versus 81 PI cars - meaning a quarter were PI cars. In 2008, the numbers were 265 and 62 respectively.
Asked if the numbers were a concern, Andre Roy, group managing director of Wearnes’ automotive division, whose Malayan Motors represents Bentley, said: ‘The answer is yes and no. On the positive side, we are pleased with the growing demand for Bentley. It shows we’ve done a good job investing in the brand and business over the past 78 years.’
Mr. Roy said what worries him is that PI operators may not be giving potential buyers the full picture. ‘For example, the customers may not be told that, as per Bentley policy, vehicles exported outside of their designated market are no longer eligible for factory warranty coverage, or given the full or correct service history,’ he said.
Also, the cars may not have been built to Singapore specifications. Still, Mr. Roy said these PI sales have not really affected his business.
In fact, Porsche Asia-Pacific managing director Christer Ekberg expects the number of PI cars to fall over time.
‘The number is on the high side but I am not really concerned except for the importer and his investments,’ he said. ‘Competition is always good but only as long as the cars are imported in the normal legal way, with all taxes paid and the invoice value of the car correct. But we know this is not always the case.’
Mr. Ekberg said Asia’s high import duties and taxes on cars create ‘a market for tax evasion’. However, he said he has ‘full faith in Singapore’s legal system, and the way the Customs department is handling it is fantastic’.
He added: ‘I wish this would be the case for every country in the world.’
Lamborghini Singapore boss Melvin Goh is also concerned about the rising number of PI cars, even though they are relatively small for the Italian exotic manufacturer.
But Mr. Goh is not unduly worried because ‘those who buy a car like this usually buy into a lifestyle’.
‘Those who get it from a PI operator will not enjoy the full experience, including customer events,’ he said.
Last year, 7 per cent of the 54 Lamborghinis registered in Singapore were PI units. But this was a jump from zero the previous year.
Once reason for the relatively high number of luxury PI units last year is that most were brought in used. Although no data is available, anecdotal evidence seems to support this in the case of Bentley and Lamborghini. Porsche was affected to a lesser extent because the majority (more than three-quarters) are believed to be new.
The main attraction is, of course, price. For example, PI operator Vincar, which sold six Bentleys last year, said one of these (a mid-2009 GTC convertible) was transacted at $630,000 in October - or more than $200,000 less than the price of a new car then.
‘Demand is good because of the price and because there are not many second-hand units in the market,’ said Vincar director Vincent Tan. ‘If there are second-hand units, the prices are still high. So people turn to used imports.’
Importing used luxury cars became more attractive after the Land Transport Authority (LTA) allowed them to be eligible for the scrap rebate from September 2007. They have to be under three years old and incur a used car surcharge of $10,000 in addition to the usual registration taxes.
The cars are sourced from Japan and the UK, and Vincar is one of about 10 PI operators dealing in such vehicles. Mr. Tan said the used luxury market suffered in the first half of 2009 because of the financial crisis, but started picking up in the third quarter. ‘For 2010, it looks like demand in the used luxury segment should be sustained, although the general PI market will suffer because of higher COE premiums,’ he said.
just linked this article on my facebook account. it’s a very interesting article for all.
Second Hand Cars
Post a Comment