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SINGAPORE - During the recent global credit crunch, two brothers in Singapore ordered four Lamborghinis, each with a price tag of about $US2 million, and kept the door open for a fifth.
This was on top of the four cars they had bought previously, proof that a fair portion of the money filling coffers in booming Singapore is being spent on luxury vehicles despite a tax system that makes them some of the most expensive in the world.
"The market is flush with cash. Stock brokers are making money, the property owners are making money," said Melvin Goh, local managing director of Lamborghini importer EuroSports Auto.
Singapore's economy is going strong, fuelling demand for all things luxurious, and the government, which hopes to make this tiny island into a Monaco where the wealthy set up base and play, is encouraging the drive to cater to the rich.
Rolls-Royce says they already have orders for eight Phantom Drophead Coupes, while there are two ultra-exclusive Pagani Zondas on the roads, with another seven or eight on the way.
"These cars are unique," said Peter Wong, CEO of Pagani Zonda importer Automobil Manufactur. "Having one in your garage will definitely enhance your status," he said, adding customers have to wait two years for the hand-made Italian supercars.
But status in Singapore comes with a hefty price due to taxes and fees that sometimes exceed the actual cost of the car. An entry-level Aston Martin V8 Vantage, the James Bond car, costs just over $500,000 - about double what you'd pay elsewhere.
The island also has a strictly enforced, and relatively low, maximum speed limit of 90 km/h.
Love at first sight
But for owners, price is not an issue, dealers said.
"The most important thing is you look at it, you like it, you love it. That's all that matters," said Edward Tan, executive director of Hong Seh Motors, importer for Maserati and Ferrari.
"Price is secondary. The quality and the desire for it comes first," he said, adding that the economy and the drive to attract more people to Singapore were boosting sales.
Over at the Lamborghini showroom, a white special-edition Versace Murcielago LP640 takes centre stage. The $2 million car, one of only 20, is already sold to a Malaysian.
Derek McCully of importer Aston Martin Lagonda SEA, said most of his buyers were Singaporean professionals, but the number of foreigners was also growing.
"Buyers are young but very mature. They are not the flashy type. These guys are self-made, they've worked hard. I think for them it's not indulgence, it's just a self-reward," he said.
Two-wheeled exotica are also being snapped up. Local Ducati distributor Minerva says about 64 bikes have so far been registered this year, compared with 54 for all of last year.
"This has been a good year, hopefully our best year," general manager Mary Koh said, surrounded by bikes marked as sold. But with all this speed, how do owners of fast cars enjoy them in land-scarce and anti-speeding Singapore?
Just look at them, advised Lamborghini importer Goh.
"It's a passion for the cars, to have the car parked in the garage, to look at it before going to work, or feel like taking any one on a Sunday morning or evening for a spin," he said.
And for Singapore Ferrari Club president Ben Neo, style triumphs over speed any day. "Ferrari is all about looks. The beauty of the car, the speed, the sound," he said.
But for those with a serious need for speed, neighbouring Malaysia's just the ticket: the Sepang F1 race circuit near Kuala Lumpur holds track days regularly for driving enthusiasts.
- REUTERS
