Imported used cars now more attractive to buyers - ST

[Amazon777]

New rule makes them eligible for scrap rebate but $10,000 surcharge stays

 

MOTORISTS looking to buy mid- to high-end marques, but do not mind a used car, will have more and possibly cheaper models to choose from, with the Land Transport Authority (LTA) liberalising the import of cars.

Changing a regulation put in place in the 1970s, the LTA said yesterday that used cars imported into Singapore will now be eligible for a scrap rebate - which can amount to several hundred thousand dollars for top-end cars like Lamborghinis and Rolls-Royces.

 

Owners get the rebate or preferential additional registration fee (Parf) if they de-register their cars before the 10th year. The rebate can be used to offset taxes for a new car.

 

The LTA's new rule takes effect from Sept 1, and applies to vehicles no older than three years.

 

One other rule affecting imported cars stays unchanged however. Importers will still have to pay a $10,000 surcharge for used cars, on top of all the usual taxes and the certificate of entitlement (COE) required for owning a car here.

 

Mr Neo Nam Heng, president of the Automotive Importers and Exporters Association - a body for parallel importers - cheered the move.

 

'Used Ferraris, Porsches, BMWs, Mercedes, Lexus - we will start bringing them in soon,' he said.

 

'We have been lobbying for this for five years,' he said, but added that 'we will keep convincing them to remove the $10,000 surcharge'.

 

Parf benefits were introduced more than 30 years ago to keep the vehicle population young. But imported used vehicles were not eligible - to prevent a population explosion of cheap cars in the pre-COE days.

 

Mr Neo said the latest move will allow car dealers to source for used cars from overseas markets. Imported used cars are likely to be cheaper than local used cars too because they will have a far lower open-market value - on which all car taxes are calculated.

 

But because of the $10,000 surcharge, it is likely that only mid- to high-end used cars will be imported.

 

Each imported used car will be registered using a COE lasting 10 years.

 

But if the owner wishes to enjoy the scrap rebate, he must scrap the vehicle before its 10th year, starting from the time it was originally registered overseas.

 

Even so, he gets a rebate on the unused portion of the COE.

 

Will car buyers go for imported used cars?

 

Traders think so, 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.

 

And to address concerns of 'buying blind', without knowing the car's history, potential buyers can have the cars checked by vehicle assessors.

 

Enthusiast Kevin Kwee, 37, said: 'It's good news. But sourcing for a quality car with low mileage may be a problem. Average mileage in many markets tend to be higher than Singapore's.'

 

Dealers of new cars were less cheerful.

 

'This will increase the demand for COEs, and put upward pressure on premiums,' said Motor Traders Association president Michael Wong.

Edited August 25, 2007 by Amazon777

[Dynaway]

jus one note on used imported vehicle,

 

the imported vehicle may have been damaged due to accident then repaired/restored back and exported out of the country.....

 

so potential buyer need to know wat they are looking at or wats the risk involve in getting a used vehicle from oversea.

Edited August 25, 2007 by Dynaway

[Nazaki]

Finally.. I might be able to afford to drive a lambo. LOL!!

[Amazon777]

No need lambo lah. Maybe we can get a used 3 yrs old BMW 320 for $80K or less.

[Amazon777]

jus one note on used imported vehicle,

 

the imported vehicle may have been damaged due to accident then repaired/restored back and exported out of the country.....

 

so potential buyer need to know wat they are looking at or wats the risk involve in getting a used vehicle from oversea.

 

Exactly, it will be better if we have friends who can look out for you the cars. SG have been exporting used cars to Sri Lanka, Maldive etc. Now is our turn to import, any idea which country should we look to or rather the country of origin? German, Italy, UK, Japan etc. If the difference can be up to 50% cheaper as compare to new car prices in SG, I do not mind DIY myself a used 3 yrs old car.

Edited August 25, 2007 by Amazon777

[Genie47]

For those who want to convert to CNG. No need buy car and convert. Look for imported used CNG bifuel car. There are lots from Europe.

[Dynaway]

i would say it only make sense to get conti makes.... or models tat is having premium pricing or models not available here...