Car importers deny withholding new prices
Car importers deny they have been reticent when asked for prices following the new tax regime announced in the budget, after Finance Minister Tonio Fenech said importers were not divulging new prices because they were waiting for competitors to...
Car importers deny they have been reticent when asked for prices following the new tax regime announced in the budget, after Finance Minister Tonio Fenech said importers were not divulging new prices because they were waiting for competitors to announce theirs.
A spokesman for the ministry said Mr Fenech on Sunday was listing the positive effects of the budget, one of which was car tax reform. The minister said there were reductions in tax of between 33 and 41 per cent, but buyers had yet to see the advantages.
Michael Debono Ltd marketing manager Jonathan Cremona explains importers hate to divulge prices over the phone because many callers are mystery shoppers.
"Abroad, every agent will tell you what the price of a car is," he adds. "The local market is very different. It is small and very competitive. Every importer has different tactics to close a sale. Some make individual buyers feel as if they are giving them a special price, others let the customer haggle before they arrive at an agreed price.
"The worst thing buyers can do is compare the prices of cars overseas with prices on the local market. People must remember that cars are imported to Malta by freight, which makes them more expensive to import. The insurance is higher on the cargo. The provenance of the cars we import also impacts on price. Besides, our quotas are much lower than those of other countries."
Mr Cremona says the local market is hugely price-driven and importers are forced to keep their prices low anyway.
"Michael Debono Ltd, for example, cannot afford not to pass on the reductions on Toyota because we would be out-priced," he points out. "Our company strives to be transparent - Toyota demands that we are transparent and that our customer service is of high standard. We have missed our sales targets for 2008 by a margin, but now there is interest in January registration sales."
Michael Attard Ltd sales manager Alex Tanti told The Times Business that the Peugeot importer's prices were very public.
"All the cars in our showroom have prices clearly displayed. You may come and see for yourself," he says. "We have just had an open weekend when we explained the savings on our Peugeot models under the new regime. We are selling cars at 2009 prices."
UCIM Co. Ltd too has held an Alfa Romeo open weekend to present the new prices on the range and to show off the one 147 Ducati Corse it managed to clinch out of a worldwide limited edition of 500.
"Over the weekend we explained how prices have come down under the new system," sales and marketing manager Kenneth Rizzo Naudi said. "We don't advertise prices, nor do we give prices of Alfa Romeo models over the phone. It is not our policy because it is not conducive to the brand. We market Alfa Romeo by explaining, on enquiry, how the prices are lower.
"Yes, of course, I will give you prices: the Spider 2.4 STD is now €54,800, down by €10,300, the 159 Elegante VIP is loaded with extras and sells at €41,400, down by €3,531, the Brera 2.2-litre petrol is €53,300, down by €6,230 - the 2.4 GTD is even better priced than the petrol.
"Clients have been amazed at how much lower the prices are. They do not seem to realise what has happened. Also, they are under the impression that powerful cars mean more emissions and more charges. With Alfa Romeo that is not the case."
Auto Sales Ltd director Bernardette Bonnici says the Mercedes, Renault and Smart importer has handled queries about current prices and January registration prices.
"Some people have bought," she explains, "but the majority are waiting. It's not true that importers are holding prices back. Look at Peugeot, they've just held an open weekend. We advertise our prices - we are advertising the Twingo at the moment. Why is the government shooting everyone down? Everybody is talking about a recession. Our industry has been in recession for 18 months now. This sector employs over 750 people and should be treated with more respect. There needs to be a level playing field in this sector, even in the second-hand car market."
Asked how sales were proceeding under the new taxation, one importer said it was a "challenging" time to sell cars, blaming the media for spreading gloom.
A cursory look at car advertising over the past year reveals that importers mostly publish prices when models are on introductory or special offers. The prices of high value cars are rarely advertised.
A spokesman for the ministry said Mr Fenech on Sunday was listing the positive effects of the budget, one of which was car tax reform. The minister said there were reductions in tax of between 33 and 41 per cent, but buyers had yet to see the advantages.
Michael Debono Ltd marketing manager Jonathan Cremona explains importers hate to divulge prices over the phone because many callers are mystery shoppers.
"Abroad, every agent will tell you what the price of a car is," he adds. "The local market is very different. It is small and very competitive. Every importer has different tactics to close a sale. Some make individual buyers feel as if they are giving them a special price, others let the customer haggle before they arrive at an agreed price.
"The worst thing buyers can do is compare the prices of cars overseas with prices on the local market. People must remember that cars are imported to Malta by freight, which makes them more expensive to import. The insurance is higher on the cargo. The provenance of the cars we import also impacts on price. Besides, our quotas are much lower than those of other countries."
Mr Cremona says the local market is hugely price-driven and importers are forced to keep their prices low anyway.
"Michael Debono Ltd, for example, cannot afford not to pass on the reductions on Toyota because we would be out-priced," he points out. "Our company strives to be transparent - Toyota demands that we are transparent and that our customer service is of high standard. We have missed our sales targets for 2008 by a margin, but now there is interest in January registration sales."
Michael Attard Ltd sales manager Alex Tanti told The Times Business that the Peugeot importer's prices were very public.
"All the cars in our showroom have prices clearly displayed. You may come and see for yourself," he says. "We have just had an open weekend when we explained the savings on our Peugeot models under the new regime. We are selling cars at 2009 prices."
UCIM Co. Ltd too has held an Alfa Romeo open weekend to present the new prices on the range and to show off the one 147 Ducati Corse it managed to clinch out of a worldwide limited edition of 500.
"Over the weekend we explained how prices have come down under the new system," sales and marketing manager Kenneth Rizzo Naudi said. "We don't advertise prices, nor do we give prices of Alfa Romeo models over the phone. It is not our policy because it is not conducive to the brand. We market Alfa Romeo by explaining, on enquiry, how the prices are lower.
"Yes, of course, I will give you prices: the Spider 2.4 STD is now €54,800, down by €10,300, the 159 Elegante VIP is loaded with extras and sells at €41,400, down by €3,531, the Brera 2.2-litre petrol is €53,300, down by €6,230 - the 2.4 GTD is even better priced than the petrol.
"Clients have been amazed at how much lower the prices are. They do not seem to realise what has happened. Also, they are under the impression that powerful cars mean more emissions and more charges. With Alfa Romeo that is not the case."
Auto Sales Ltd director Bernardette Bonnici says the Mercedes, Renault and Smart importer has handled queries about current prices and January registration prices.
"Some people have bought," she explains, "but the majority are waiting. It's not true that importers are holding prices back. Look at Peugeot, they've just held an open weekend. We advertise our prices - we are advertising the Twingo at the moment. Why is the government shooting everyone down? Everybody is talking about a recession. Our industry has been in recession for 18 months now. This sector employs over 750 people and should be treated with more respect. There needs to be a level playing field in this sector, even in the second-hand car market."
Asked how sales were proceeding under the new taxation, one importer said it was a "challenging" time to sell cars, blaming the media for spreading gloom.
A cursory look at car advertising over the past year reveals that importers mostly publish prices when models are on introductory or special offers. The prices of high value cars are rarely advertised.