Luxury cars a hit despite increase in COE premiums
By Stella Lee | Posted: 21 February 2011 2105 hrs
SINGAPORE: Singapore car registrations dipped almost 40 per cent in 2010, as sky-rocketing Certificate of Entitlement (COE) premiums put off prospective buyers.
COE premiums saw a record jump last year, with a 163 per cent increase for vehicles with engine capacity of more than 1600cc. Premiums rose 96 per cent for vehicles below 1600cc and more than 200 per cent for the open category in the same period.
However, registrations for luxury cars moved in the opposite direction last year and January data shows more high-earners here are keeping up with a speeding economy.
Luxury car dealerships are seeing more buyers, bucking sluggish demand in the broader auto market.
BMW registrations in Singapore grew 21.4 per cent last year; Mercedes Benz saw a 17.7 per cent jump.
Registrations for luxury sport autos have seen an even bigger increase.
Car registrations for Porsche rose 48 per cent last year, while those for Ferrari went up a whopping 116 per cent. This compares with a 39 per cent drop in registrations in the overall auto market in Singapore.
Karsono Kwee, Executive Chairman of Stuttgart Auto (Porsche), said: "I've been in the Porsche business for the last 25 years. Last year was a record year for us."
According to luxury sports auto dealerships, the bulk of demand came from high-earners, such as lawyers and bankers.
And these individuals may have spent their year-end bonuses chasing speed. Last month saw 97 registrations for Porsche, almost six times the December figure of 17. James Bond's favourite Aston Martin saw five registrations in January, compared with just two in December.
Analysts said that with the economy growing strongly, pay packages for top executives will rise further, giving them more spending power.
Pan Zai Xian, Director of Financial Services and Legal at Robert Walters, said: "A lot of compensation has been raised in the last year. I think last year has been a great year when people spend...like upgrading their vehicles before the COE prices come up. I think that's quite typical, in luxury brands we see that as well."
And with pay packages expected to rise again this year, especially for those in the higher-income bracket, demand for luxury cars like these may just continue to go up.
-CNA/ac
- wong chee tat :)
By Stella Lee | Posted: 21 February 2011 2105 hrs
SINGAPORE: Singapore car registrations dipped almost 40 per cent in 2010, as sky-rocketing Certificate of Entitlement (COE) premiums put off prospective buyers.
COE premiums saw a record jump last year, with a 163 per cent increase for vehicles with engine capacity of more than 1600cc. Premiums rose 96 per cent for vehicles below 1600cc and more than 200 per cent for the open category in the same period.
However, registrations for luxury cars moved in the opposite direction last year and January data shows more high-earners here are keeping up with a speeding economy.
Luxury car dealerships are seeing more buyers, bucking sluggish demand in the broader auto market.
BMW registrations in Singapore grew 21.4 per cent last year; Mercedes Benz saw a 17.7 per cent jump.
Registrations for luxury sport autos have seen an even bigger increase.
Car registrations for Porsche rose 48 per cent last year, while those for Ferrari went up a whopping 116 per cent. This compares with a 39 per cent drop in registrations in the overall auto market in Singapore.
Karsono Kwee, Executive Chairman of Stuttgart Auto (Porsche), said: "I've been in the Porsche business for the last 25 years. Last year was a record year for us."
According to luxury sports auto dealerships, the bulk of demand came from high-earners, such as lawyers and bankers.
And these individuals may have spent their year-end bonuses chasing speed. Last month saw 97 registrations for Porsche, almost six times the December figure of 17. James Bond's favourite Aston Martin saw five registrations in January, compared with just two in December.
Analysts said that with the economy growing strongly, pay packages for top executives will rise further, giving them more spending power.
Pan Zai Xian, Director of Financial Services and Legal at Robert Walters, said: "A lot of compensation has been raised in the last year. I think last year has been a great year when people spend...like upgrading their vehicles before the COE prices come up. I think that's quite typical, in luxury brands we see that as well."
And with pay packages expected to rise again this year, especially for those in the higher-income bracket, demand for luxury cars like these may just continue to go up.
-CNA/ac
- wong chee tat :)
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