MAJOR car dealers hate them, the consumer watchdog is not too thrilled by them, but car buyers continue to flock to them. We're talking about parallel importers.
One in five new cars sold here is now a parallel import, up from one in 10 just five years ago.
According to estimates based on Land Transport Authority statistics, 16,810 out of 82,646 cars (20.3 per cent) registered in the first nine months were parallel imports.
If the trend continues, this year will be another record year for parallel imports.
The top three brands are Toyota, Honda and Suzuki, although several others like Mercedes-
Benz, BMW and Porsche make up the cohort too.
Parallel importers source their cars from overseas dealers, while authorised agents get theirs direct from manufacturers.
Parallel imports are attractive chiefly because they are cheaper. A parallel-imported Honda Stream, for instance, costs around $74,000, versus $79,000 for one sold by authorised Honda agent Kah Motors.
A parallel-imported Toyota Wish is around $72,000, versus $85,000 for a Toyota Picnic - the closest equivalent offered by authorised Toyota agent Borneo Motors.
While the presence of parallel importers is said to have helped keep car prices competitive, some of these importers' business practices have irked car buyers.
Figures from the Consumers Association of Singapore (Case) revealed that complaints against parallel importers make up the bulk of car-linked grouses.
In the first nine months of this year, last year and 2005, car-
related complaints filed with Case numbered 152, 112 and 84 respectively. In all three periods, those against parallel importers outnumbered authorised agents three to one. On average, three complaints are filed against parallel importers each week this year.
Case executive director Seah Seng Choon said: 'Consumers really have to make their choices with their eyes open. They should do their homework... and not just look at the price of the car alone.
'They should consider the warranty, the availability of spare parts and the benefit of free parts replacement in the event of product recalls.'
Despite the grouses, which mostly relate to late delivery, hidden charges and refusal to return deposits, two out of four motorists The Straits Times interviewed said they would buy a parallel import.
Marketing and communications manager Ms Day-Lin Koh, 29, said: 'Yes, if the price is a lot lower, and the importer is reliable.'
Even though he had a bad experience with one parallel importer, warehouse manager Adrian Wang, 47, bought a parallel-
imported Mitsubishi Evo Wagon. He picked the showroom display unit.
Mr Wang recalled: 'The COE was secured in the next tender, and I collected the car the following day. That was how fast it went.'
The Automotive Importers and Exporters Association - which represents parallel importers here - is heartened by the higher public acceptance.
'The main objective of parallel import is to break the monopoly of the car trade, so consumers have more choice,' its spokesman said. 'We have achieved that.'
Case's Mr Seah acknowledged that the rise of parallel importers has encouraged authorised agents to improve service.
'For instance, I notice the warranty offered by some authorised dealers has gone up from three years to five years,' he noted.
