Snail_Mobile
Well-Known Member
Huh??? Simi lai eh??? :screwedu: :screwedu: :screwedu:
Imported used cars
- Thread starter Snail_Mobile
- Start date
Full extract from the straits times interactive.
Nov 4, 2004
Rethinking imported used cars
By Christopher Tan
Senior Correspondent
CAR prices in Singapore have been southbound since the mid-1990s because of a myriad of reasons, but lower government taxes, a plentiful supply of certificates of entitlement (COEs) and an influx of parallel importers were the three main factors.
The first two factors reduced the cost of registering a car, while the third shaved the profit margins of top distributors, thereby bringing down the prices of second-liners too.
With some luck, motorists can look forward to another development that could depress prices further. A pro-enterprise lobby has taken up recommendations of the Automotive Importers and Exporters Association to liberalise the import of used vehicles.
In response, the Land Transport Authority (LTA) is reviewing an age-old rule that imposes a $10,000 tax surcharge on imported used cars. These cars are currently not entitled to scrap rebates.
A relaxation of the rule will certainly have wide implications for the industry, as well as the individual consumer. For a picture of how things could change, look at New Zealand.
The country is home to about four million residents, same as Singapore, but it has 2.8 million vehicles, 1.9 million of which are cars. It has a car for every two people, versus every 9.5 for Singapore, making it one of the top car-owning nations in the world.
But it wasn't always like that.
It all started with the deregulation of the economy in the late 1980s. Before that, New Zealand was a tightly controlled economy, with cars costing almost as much as they do in Singapore today, in real monetary terms. That's because a privileged group of licensed distributors had run of the entire car market.
All that has changed. With the market fully liberalised, competition rose and prices plummeted. Today, buyers definitely have more choice. A new Toyota Corolla costs about NZ$33,000 (S$37,800), a BMW 318i NZ$66,000 and a Porsche Boxster NZ$146,000 - half to a third Singapore prices.
Those who do not wish to buy new can buy second-hand New-Zealand-new, or used cars bought from local official agents, for at least 20 per cent less. Or they can shop for used imports, which are usually cars sourced from Japan. These are even cheaper than the local second-hand vehicles.
'In that sense, New Zealand is a car buyer's paradise. So many choices,' observes Mr Shahrir Ariff, a 50-year-old retiree from Singapore who has been living in Auckland for 10 years. 'But, like everything else under the sun, the motor trade is not so clear-cut.
'For example, resale value is no good, and the huge volume of business gives rise to cheating among dealers - such as odometer tampering and selling other peoples' rejects,' he points out.
One of Sime Singapore's top motor industry men, Mr Lawrence Lee, 50, is familiar with the Kiwi market. He concurs, saying 'there's always the doubt whether the mileage reading is genuine'.
Mr Lee, who developed Sime's motor interests in New Zealand over the last decade to include the 'largest dealer in Auckland', describes the market as a tough one.
Only about 60,000 new cars are sold in New Zealand in a year, compared with Singapore's average of 76,000 since 2001, but the number of used imports is 'three times that', he says. 'It has been phenomenal in the last two years,' he observes, adding that it all came about because of free trade.
'It's a big market, and every family has two or three cars. They don't have a good public transport system.'
Business for dealers selling new cars is tough, and they have to offer better and better service backup, as well as the latest models as quickly as possible. Their own stocks of used vehicles 'have to be written down very quickly', Mr Lee notes, explaining that prices here are still on the downtrend.
'The used-car scene adds a dynamic dimension to the game, and you have to really work at it to stay on top of things,' he adds.
But as a consumer, Mr Shahrir is not complaining. 'Like most locals, I own two cars, which I bought many years ago,' he says.
In 1994, he bought a nine-year-old Jaguar XJ for NZ$30,000 and a five-year-old Mitsubishi Pajero for NZ$40,000. Similar models cost less today than they did in 1994, he points out.
Looking ahead, will Singaporeans go for imported used cars, seeing how buyers have practically abandoned the pre-owned market for brand new cars in recent years?
Advocates say yes, especially when they can have a used vehicle that is less expensive than a second-hand buy here, and which has a fresh 10-year COE attached to it.
But critics, including some used-car traders, say buyers would need to be ever more wary. 'It is like buying blind,' says one. 'You won't know the car's history at all.'
Sending them to independent assessors could be the solution here.
Whatever the outcome, the proposal, even at review stage, has sent some jitters down the spine of some new-car companies.
The LTA has already received calls from some asking if indeed such a review is taking place.
It does not take much to assume they are worried about fresh competition.
Nov 4, 2004
Rethinking imported used cars
By Christopher Tan
Senior Correspondent
CAR prices in Singapore have been southbound since the mid-1990s because of a myriad of reasons, but lower government taxes, a plentiful supply of certificates of entitlement (COEs) and an influx of parallel importers were the three main factors.
The first two factors reduced the cost of registering a car, while the third shaved the profit margins of top distributors, thereby bringing down the prices of second-liners too.
With some luck, motorists can look forward to another development that could depress prices further. A pro-enterprise lobby has taken up recommendations of the Automotive Importers and Exporters Association to liberalise the import of used vehicles.
In response, the Land Transport Authority (LTA) is reviewing an age-old rule that imposes a $10,000 tax surcharge on imported used cars. These cars are currently not entitled to scrap rebates.
A relaxation of the rule will certainly have wide implications for the industry, as well as the individual consumer. For a picture of how things could change, look at New Zealand.
The country is home to about four million residents, same as Singapore, but it has 2.8 million vehicles, 1.9 million of which are cars. It has a car for every two people, versus every 9.5 for Singapore, making it one of the top car-owning nations in the world.
But it wasn't always like that.
It all started with the deregulation of the economy in the late 1980s. Before that, New Zealand was a tightly controlled economy, with cars costing almost as much as they do in Singapore today, in real monetary terms. That's because a privileged group of licensed distributors had run of the entire car market.
All that has changed. With the market fully liberalised, competition rose and prices plummeted. Today, buyers definitely have more choice. A new Toyota Corolla costs about NZ$33,000 (S$37,800), a BMW 318i NZ$66,000 and a Porsche Boxster NZ$146,000 - half to a third Singapore prices.
Those who do not wish to buy new can buy second-hand New-Zealand-new, or used cars bought from local official agents, for at least 20 per cent less. Or they can shop for used imports, which are usually cars sourced from Japan. These are even cheaper than the local second-hand vehicles.
'In that sense, New Zealand is a car buyer's paradise. So many choices,' observes Mr Shahrir Ariff, a 50-year-old retiree from Singapore who has been living in Auckland for 10 years. 'But, like everything else under the sun, the motor trade is not so clear-cut.
'For example, resale value is no good, and the huge volume of business gives rise to cheating among dealers - such as odometer tampering and selling other peoples' rejects,' he points out.
One of Sime Singapore's top motor industry men, Mr Lawrence Lee, 50, is familiar with the Kiwi market. He concurs, saying 'there's always the doubt whether the mileage reading is genuine'.
Mr Lee, who developed Sime's motor interests in New Zealand over the last decade to include the 'largest dealer in Auckland', describes the market as a tough one.
Only about 60,000 new cars are sold in New Zealand in a year, compared with Singapore's average of 76,000 since 2001, but the number of used imports is 'three times that', he says. 'It has been phenomenal in the last two years,' he observes, adding that it all came about because of free trade.
'It's a big market, and every family has two or three cars. They don't have a good public transport system.'
Business for dealers selling new cars is tough, and they have to offer better and better service backup, as well as the latest models as quickly as possible. Their own stocks of used vehicles 'have to be written down very quickly', Mr Lee notes, explaining that prices here are still on the downtrend.
'The used-car scene adds a dynamic dimension to the game, and you have to really work at it to stay on top of things,' he adds.
But as a consumer, Mr Shahrir is not complaining. 'Like most locals, I own two cars, which I bought many years ago,' he says.
In 1994, he bought a nine-year-old Jaguar XJ for NZ$30,000 and a five-year-old Mitsubishi Pajero for NZ$40,000. Similar models cost less today than they did in 1994, he points out.
Looking ahead, will Singaporeans go for imported used cars, seeing how buyers have practically abandoned the pre-owned market for brand new cars in recent years?
Advocates say yes, especially when they can have a used vehicle that is less expensive than a second-hand buy here, and which has a fresh 10-year COE attached to it.
But critics, including some used-car traders, say buyers would need to be ever more wary. 'It is like buying blind,' says one. 'You won't know the car's history at all.'
Sending them to independent assessors could be the solution here.
Whatever the outcome, the proposal, even at review stage, has sent some jitters down the spine of some new-car companies.
The LTA has already received calls from some asking if indeed such a review is taking place.
It does not take much to assume they are worried about fresh competition.
ah pui
Well-Known Member
spacie said:
this is a very good topic,
cos it poses to us the complexities faced by our authorities in allowing the lowering of car taxes which leads to a more afforable car market.
and to think just yesterday i was bitching about not being able to afford an M3.
as of now, i'm happy driving my camry along the not-so-congested roads.
now with the ERP issue, thats another story...
