SINGAPORE: The number of luxury cars is increasing on Singaporean roads despite high government car taxes.

High government car taxes don't stop the wealthy Singaporeans from buying the proper car to fit their economic status. High car prices, due to high taxes on the product doesn't stop wealthy Singaporeans from buying luxurious cars that will match their wealth. During the recent sub-prime mortgage crisis, two brothers ordered four Lamborghinis in Singapore, with an option for a fifth. And this was on top of the four they had bought previously. According to Melvin Goh, managing director of Lamborghini importer EuroSports Auto in Singapore, the market is full of cash, stock brokers and property owners are making money and a fair portion of that money is being spent on exotic cars, despite a tax system that makes Singapore's supercars among the most expensive in the world. The ultra-exclusive Pagani Zonda F costs about 3 million Singapore dollars (2 million U.S. dollars), the new Rolls-Royce Phantom Drophead Coupe 1.7 million, while an entry-level Porsche starts at around 250,000 (USD). The entry-level Aston Martin V8 Vantage will cost just over 500,000 (USD), about double what the car costs in Britain. Rolls-Royce says they already have orders for eight Drophead Coupes. "I think we have one global retail price for the car and the difference in various markets such as Singapore is taxes and I think that people realise that in Singapore that if they are going to buy something there are certain items they are going to pay taxes on," says Colin Kelly, Rolls Royce regional director for Asia Pacific. "The success of Singapore is all around us as we drive through the country, and successful Singaporeans like to reward themselves with beautiful cars," he says. Sentiment is also being driven by the government's ambition to diversify Singapore's economy and make the island a place for the wealthy to set up base and play. Ultra-luxury apartments and exclusive housing enclaves are luring the rich, while two multi-billion dollar casino resorts will attract more tourists, the government says. A night-time F1 race for next year will also add to Singapore's international allure. According to car dealers and owners, price is not the issue. "The most important thing is you look at it, you like it, you love it. That's all that matters. Price is secondary. The quality and the desire for it comes first," says Edward Tan, executive director of Hong Seh Motors, the importer for Maserati and Ferrari. He believed the economy and the drive to attract more people to Singapore were boosting sales. By the end of 2007, between 45 and 50 new Maseratis are expected to be registered on the road. By the end of next year, about 108 would be registered, Tan told Reuters. Last year, 26 new Ferraris were registered. Between January and August this year, the number was 39, with the most popular model the F430. Dealers said the recent U.S. sub-prime mortgage turmoil didn't seem to dent demand. Other brands did well too, there were 36 Bentley registrations in 2006 in Singapore and 26 by the end of August this year. Porsche, too, is hoping for a banner year, with importer Trans Eurokars selling a record 206 cars by August this year and a target of 300 by December. But in a small Island such as Singapore, how do sports car owners enjoy the power of the vehicles? For some it is all about the style, Ferrari owner and Singapore Ferrari Club president Ben Neo says the engine noise is everything for him. "Ferrari is all about looks. The beauty of the car, the speed, the sound. You want to hear the sound engine? It's fantastic the raw of it, you want to hear it? Because this is what it is all about," Neo starts his car, "this is what it is all about," he says While many owners were happy just driving around Singapore, Neo says it is possible to drive to Malaysia at the Sepang F1 race circuit next to Kuala Lumpur, where track days are held regularly for Singapore fast car, and bike, owners.

ITN Source | October 8, 2007

Tags:. .cash. .taxes. .tax. .crisis. .britain