23-03-2013, 07:09 AM
Not sure if anyone sees the irony in these two articles (which I merged together in one thread). On one hand, while used car sales have completely dried up, Eurokars is opening its spanking new complex selling high-end cars to the ultra-rich. My point - Singapore is becoming more and more a playground for the rich. How will this bridge the income gap??
(By the way, if the 30-year old marketing executive cannot cough up the $20,000 for a DP on a car, he really shouldn't be buying a car in the first place!)
The Straits Times
www.straitstimes.com
Published on Mar 23, 2013
More gloom for used-car dealers
MAS rejects the industry's appeal to ease loan curbs on second-hand cars
By Jermyn Chow
THERE will be no respite for the used-car market, which has ground to a halt after the Government's drastic curbs on car loans.
The Monetary Authority of Singapore (MAS) told The Straits Times yesterday it has rejected an appeal from the industry, confirming that the curbs will continue to apply to both new and used cars.
But Singapore Vehicle Traders Association (SVTA) honorary secretary Raymond Tang is still praying for a change of heart.
He revealed that his association will be submitting a petition signed by its 400-plus members to Prime Minister Lee Hsien Loong today. "We are really bleeding, and hope the PM can do something quick to change the minds of the policy makers and soften the restrictions on us," he said.
Since Feb 26, buyers can only borrow up to 60 per cent of a car's purchase price, and have to pay it back in five years. Before, there was no cap on the loan, and buyers could take up to 10 years to pay the money back.
Explaining why it rejected SVTA's appeal, an MAS spokesman said exempting used cars from the curbs will push up prices of these vehicles, and drive demand towards new cars. This in turn will result in "higher COE (certificate of entitlement) prices, compromising the policy objective".
On the grouse of used car dealers' that they were not consulted, the spokesman said that "prior consultation is not possible for market-sensitive measures".
With COE premiums tumbling in the wake of the curbs, and dealers of new cars slashing prices, used-car businesses are suffering.
While showrooms of new cars remain packed, sales at second-hand shops have plunged by up to 100 per cent, despite some cutting prices by a third.
Mr Bret Chia, director of RPM Automobile, has not closed a deal since the restrictions, and is looking to sell his remaining fleet at a loss. "Better to get rid of the cars, even if I am losing $10,000."
There has been a small reprieve for businesses at Commonwealth Car Mall, whose owners have given them a 10 per cent discount on rental for the next three months.
Apex Trading managing director Thomas Lim, hoping for an easing of rental by Turf City landlord Cogent Holdings, said: "Now that the authorities are saying no to us, we are really hoping for our landlord to show some mercy."
MAS said it "understands the difficulties that used-car dealers are facing", and has introduced some concessions. These include exempting the physically disabled from loan restrictions for one car.
More used cars will likely also fall in the category where a 60 per cent loan is allowed with the MAS taking depreciation into account.
For cars whose open-market value is over $20,000, only loans of up to 50 per cent are allowed.
The MAS spokesman said: "We re-emphasise that the financing restrictions are not intended to be permanent, and will be adjusted as market conditions change."
Buyers hoping that loan rules for used cars will be relaxed will also have to rethink their plans to own a vehicle.
Said marketing executive Benjamin Chan, 30, who had to forgo a four-year-old Honda Jazz because he cannot afford the $20,000 downpayment: "Looks like I have to wait a little longer."
jermync@sph.com.sg
---------------------
The Straits Times
www.straitstimes.com
Published on Mar 23, 2013
$42m luxury car showroom opens
By Royston Sim
A LUXURIOUS car showroom for premium marques such as Rolls-Royce and Porsche opened yesterday - boasting features such as two giant vehicle lifts and a swanky bar.
Costing $42 million and built over two years, the Eurokars City Centre hopes to take advantage of the bullish premium motor market, despite recent curbs on loans to motorists and a tiered additional registration fee.
The six-storey, 76,000 sq ft Eurokars facility houses three brands - Porsche, Rolls-Royce and Mini - and was built on an existing Porsche showroom site on Leng Kee Road. Eurokars group executive chairman Karsono Kwee promised the revamped facility will provide luxury-car enthusiasts with a more comfortable experience.
"No expense was spared in creating a luxurious environment for our customers. We want them to feel like they are at home," he said.
Eurokars said the new facility houses the biggest Rolls-Royce showroom in South-east Asia, with over 4,600 sq ft of floor space.
Two enormous car lifts - which the group says are the biggest in Singapore - ensure that even the longest 6m Phantoms can be transported to the second-floor showroom with ease. There is also a customer lounge with a "floating bar" taking up more than 3,700 sq ft.
Last year, the group sold 408 Porsches, compared with 473 in 2011 and 324 in 2010.
Rolls-Royce deliveries hit a record high of 29 last year, from 26 in 2011 and 27 in 2010.
The outlook for Singapore's luxury car market is bullish even with recent changes, Mr Kwee said, noting that the market share for premium cars has increased over the years.
As for certificates of entitlement, he said it was hard to predict where premiums were headed, as the market is still turbulent and has not settled down.
roysim@sph.com.sg
(By the way, if the 30-year old marketing executive cannot cough up the $20,000 for a DP on a car, he really shouldn't be buying a car in the first place!)
The Straits Times
www.straitstimes.com
Published on Mar 23, 2013
More gloom for used-car dealers
MAS rejects the industry's appeal to ease loan curbs on second-hand cars
By Jermyn Chow
THERE will be no respite for the used-car market, which has ground to a halt after the Government's drastic curbs on car loans.
The Monetary Authority of Singapore (MAS) told The Straits Times yesterday it has rejected an appeal from the industry, confirming that the curbs will continue to apply to both new and used cars.
But Singapore Vehicle Traders Association (SVTA) honorary secretary Raymond Tang is still praying for a change of heart.
He revealed that his association will be submitting a petition signed by its 400-plus members to Prime Minister Lee Hsien Loong today. "We are really bleeding, and hope the PM can do something quick to change the minds of the policy makers and soften the restrictions on us," he said.
Since Feb 26, buyers can only borrow up to 60 per cent of a car's purchase price, and have to pay it back in five years. Before, there was no cap on the loan, and buyers could take up to 10 years to pay the money back.
Explaining why it rejected SVTA's appeal, an MAS spokesman said exempting used cars from the curbs will push up prices of these vehicles, and drive demand towards new cars. This in turn will result in "higher COE (certificate of entitlement) prices, compromising the policy objective".
On the grouse of used car dealers' that they were not consulted, the spokesman said that "prior consultation is not possible for market-sensitive measures".
With COE premiums tumbling in the wake of the curbs, and dealers of new cars slashing prices, used-car businesses are suffering.
While showrooms of new cars remain packed, sales at second-hand shops have plunged by up to 100 per cent, despite some cutting prices by a third.
Mr Bret Chia, director of RPM Automobile, has not closed a deal since the restrictions, and is looking to sell his remaining fleet at a loss. "Better to get rid of the cars, even if I am losing $10,000."
There has been a small reprieve for businesses at Commonwealth Car Mall, whose owners have given them a 10 per cent discount on rental for the next three months.
Apex Trading managing director Thomas Lim, hoping for an easing of rental by Turf City landlord Cogent Holdings, said: "Now that the authorities are saying no to us, we are really hoping for our landlord to show some mercy."
MAS said it "understands the difficulties that used-car dealers are facing", and has introduced some concessions. These include exempting the physically disabled from loan restrictions for one car.
More used cars will likely also fall in the category where a 60 per cent loan is allowed with the MAS taking depreciation into account.
For cars whose open-market value is over $20,000, only loans of up to 50 per cent are allowed.
The MAS spokesman said: "We re-emphasise that the financing restrictions are not intended to be permanent, and will be adjusted as market conditions change."
Buyers hoping that loan rules for used cars will be relaxed will also have to rethink their plans to own a vehicle.
Said marketing executive Benjamin Chan, 30, who had to forgo a four-year-old Honda Jazz because he cannot afford the $20,000 downpayment: "Looks like I have to wait a little longer."
jermync@sph.com.sg
---------------------
The Straits Times
www.straitstimes.com
Published on Mar 23, 2013
$42m luxury car showroom opens
By Royston Sim
A LUXURIOUS car showroom for premium marques such as Rolls-Royce and Porsche opened yesterday - boasting features such as two giant vehicle lifts and a swanky bar.
Costing $42 million and built over two years, the Eurokars City Centre hopes to take advantage of the bullish premium motor market, despite recent curbs on loans to motorists and a tiered additional registration fee.
The six-storey, 76,000 sq ft Eurokars facility houses three brands - Porsche, Rolls-Royce and Mini - and was built on an existing Porsche showroom site on Leng Kee Road. Eurokars group executive chairman Karsono Kwee promised the revamped facility will provide luxury-car enthusiasts with a more comfortable experience.
"No expense was spared in creating a luxurious environment for our customers. We want them to feel like they are at home," he said.
Eurokars said the new facility houses the biggest Rolls-Royce showroom in South-east Asia, with over 4,600 sq ft of floor space.
Two enormous car lifts - which the group says are the biggest in Singapore - ensure that even the longest 6m Phantoms can be transported to the second-floor showroom with ease. There is also a customer lounge with a "floating bar" taking up more than 3,700 sq ft.
Last year, the group sold 408 Porsches, compared with 473 in 2011 and 324 in 2010.
Rolls-Royce deliveries hit a record high of 29 last year, from 26 in 2011 and 27 in 2010.
The outlook for Singapore's luxury car market is bullish even with recent changes, Mr Kwee said, noting that the market share for premium cars has increased over the years.
As for certificates of entitlement, he said it was hard to predict where premiums were headed, as the market is still turbulent and has not settled down.
roysim@sph.com.sg
this goes to show that they must have made piles for a long time already...