The world is changing and it is changing fast. Less is more these days, as rising costs, increasing population and depleting resources are forcing people to journey inwards and think wiser. Buying a Supercar is no big deal for many, but the ever increasing taxes, speed restrictions and increasing traffic jams, makes one think, if that much power and flamboyance is really required at all.
Supercar dealers in Singapore are worried as the super rich are shifting choices to more humble modes of transportation due to exorbitant taxes and various restrictions on car finance options. While Singapore happens to boast of the third-highest ratio of millionaires per capita in the world, Supercar dealerships are witnessing the lowest action ever. So much so, that in order to shift some units, dealers are throwing launch parties, while some have set-up pre-owned dealerships to try and put the business back on rails.
About the situation, Kevin John Chia, general manager of Aston Martin Singapore said, “If this situation continues, we believe that supercar dealers will not be able to sustain a viable operation based on the huge infrastructure put in place as well as the high cost of running the business,”
A new tax structure that was introduced in 2013 and restrictions in automotive finance have plummeted sales of some supercar brands by almost 90%. Last year it was the third-biggest market in the world for bespoke Rolls-Royce sales while Porsche was among the top 15 selling brands of car.
Two Aston Martins, a couple Lamborghinis and 14 Ferraris were sold in the first half of 2014, compared to 16, 20 and 64 respectively in the same period a year ago.
Last March a new tax regime came into effect, taxing the first S$20,000 of a car’s open-market value at 100 percent, the next S$30,000 at 140 percent, and anything above S$50,000 at 180 percent. A new Aston Martin Vanquish now sells for S$1.088 million compared to S$880,000 previously.
Some of the people are shying away from supercars as they are losing their exclusivity factor, a trader from Singapore who has a fleet of supercars said, “I bought the BMW i8 because I don’t want to be seen as driving another supercar that half the people I know have.”
Picture Courtesy: Sgcarmart