For four consecutive years, the Economist Intelligence Unit has branded Singapore as the costliest city for tourists to live in worldwide.
One of the main factors rely on the price of possessing and maintaining a car in Singapore. This is due to the reason that this country has many variations of taxes and government levies that result to over-expensive cars.
In America, a Toyota Corolla sells for a smaller amount of US$20, 000 while in Singapore they sell for an amount of US$80, 000. A high-end car like the Lamborghini or Ferrari can be bought in Singapore for US 1.4 million. This is thrice more than its American counterpart.
Getting Weary of Costly Cars
Executive Director Edward Tan of the Hong She Company, the person responsible for distributing Ferrari cars in the country for more than two decades, revealed that many sports car aficionados are getting weary of Singapore’s over-expensive cars. Now, they are more inclined to purchasing superyachts.
The Ferretti Group
“Well-off people are starting to question their decisions on purchasing over-expensive cars. Now, they are thinking of buying a luxury boat than something very costly like a Lamborghini or a Ferrari. A car unlike a yacht cannot provide enough space for other leisure activities. For them, it is more practical because in a huge boat, you can relax further,” Edward Tan added.
“Singapore has a tax of at least 7% on boats. This is a lot lesser than the ones you pay for in Europe. We are witnessing a sudden shift in preference from a lot of former over-expensive cars enthusiasts. They are choosing the yacht-owner’s life instead which lets them relax further and spend less.
This is contrary to over-expensive cars which they will have to lease for a decade from the Singaporean government,” Tan shared during the launch of Hong She Marine’s two fresh motor boat models from Ferretti Group.
Tan is talking about the Singapore’s Certificate of Entitlement system. The COE requires automobile possessors to bid on limited certificates given by the Singaporean government. This certificate’s price ranges from $50, 000 to $100, 000. It is stated in the certificate that the authority to own over-expensive cars is for 10 years and it must not be exported. Yachts or other marine vessels on the other hand are not liable to these limitations.
The Emerging Player
Ferretti Group is today’s second-largest supplier of speed yachts. In 2012, the Weichai Group bought 87% share of Ferretti. Ever since the contract has been sealed, Ferretti started spending heavily in the expansion of its market in the Asian region. Their goal is to be the emerging player in the market. Apart from China, Japan, Hong Kong and Thailand, the group has expanded in Singapore.
Pershing, a speedboat division of the Ferreti Group, is the most innovative, most high-end, and most aggressive line accentuated with Italian lay outing.
A reason why Singapore seems to be growing in this industry is because of its weather conditions. Unlike in the Mediterranean region, Singapore can accommodate yachting all-year round.