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13-01-2012, 06:39 AM
Drive away with a car for $1 downpayment? Is that really such a good idea? 
The Straits Times
Jan 13, 2012
German cars hog top 10
BMW was the best-selling car brand here last year, displacing Toyota, which had been in pole position since 2002.
The Bavarian marque also widened the gap between itself and runner-up Mercedes-Benz, leading its German archrival by nearly 800 cars.
Toyota came third, with sales shrinking by nearly half to 3,562.
Only two of the top 10 bestsellers managed to post growth in sales: BMW and Volvo.
Five out of 10 fared worse in a year when overall car sales slumped by a third to 28,270 units.
The reason: Fewer certificates of entitlement (COEs) were available.
The constricted supply triggered tougher competition, which in turn pushed COE premiums - and car prices - higher.
In this environment, the premium makes, largely the Germans, fared better than others, because buyers of such cars were less sensitive to the price increases, and sellers had fatter profit margins with which to outbid competitors for COEs.
BMW's stellar performance here reflected its global results. The brand delivered 1.38 million cars - up 12.8 per cent - to post its best year yet.
Mr Say Kwee Neng, the managing director of BMW agent Performance Motors, described getting to the No. 1 position as 'bitter-sweet'.
He said he and his team were happy with and proud of their achievement, but they had not forgotten what a 'terrible' year their peers at Toyota had experienced. He said it would have been different if 'the natural disasters in Japan and Thailand had not occurred'.
This year is likely to be just as competitive, if not more so.
Porsche - another German brand, which was outside the top 10 but posted a 30.4 per cent rise in sales to 584 cars - looks set to add to the heat.
At the launch of its 911 model at The Ritz-Carlton yesterday, it announced a tie-up between Porsche Financial Services, its financing arm, and Hong Leong Finance, that will let buyers drive away a new Porsche for a down payment as low as $1.
Before, Hong Leong Finance was financing 20 per cent of Porsches bought here.
The Straits Times understands that the joint venture will extend loans to buyers of other brands in the Volkswagen Group, including VW, Audi, Skoda, Bentley and Lamborghini.
This move will entrench Hong Leong's position as the leading finance company here, and give the Germans the additional firepower to stay ahead, observers said.
CHRISTOPHER TAN
The Straits Times
Jan 13, 2012
German cars hog top 10
BMW was the best-selling car brand here last year, displacing Toyota, which had been in pole position since 2002.
The Bavarian marque also widened the gap between itself and runner-up Mercedes-Benz, leading its German archrival by nearly 800 cars.
Toyota came third, with sales shrinking by nearly half to 3,562.
Only two of the top 10 bestsellers managed to post growth in sales: BMW and Volvo.
Five out of 10 fared worse in a year when overall car sales slumped by a third to 28,270 units.
The reason: Fewer certificates of entitlement (COEs) were available.
The constricted supply triggered tougher competition, which in turn pushed COE premiums - and car prices - higher.
In this environment, the premium makes, largely the Germans, fared better than others, because buyers of such cars were less sensitive to the price increases, and sellers had fatter profit margins with which to outbid competitors for COEs.
BMW's stellar performance here reflected its global results. The brand delivered 1.38 million cars - up 12.8 per cent - to post its best year yet.
Mr Say Kwee Neng, the managing director of BMW agent Performance Motors, described getting to the No. 1 position as 'bitter-sweet'.
He said he and his team were happy with and proud of their achievement, but they had not forgotten what a 'terrible' year their peers at Toyota had experienced. He said it would have been different if 'the natural disasters in Japan and Thailand had not occurred'.
This year is likely to be just as competitive, if not more so.
Porsche - another German brand, which was outside the top 10 but posted a 30.4 per cent rise in sales to 584 cars - looks set to add to the heat.
At the launch of its 911 model at The Ritz-Carlton yesterday, it announced a tie-up between Porsche Financial Services, its financing arm, and Hong Leong Finance, that will let buyers drive away a new Porsche for a down payment as low as $1.
Before, Hong Leong Finance was financing 20 per cent of Porsches bought here.
The Straits Times understands that the joint venture will extend loans to buyers of other brands in the Volkswagen Group, including VW, Audi, Skoda, Bentley and Lamborghini.
This move will entrench Hong Leong's position as the leading finance company here, and give the Germans the additional firepower to stay ahead, observers said.
CHRISTOPHER TAN
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