Flood of second-hand cars slashing resale values
The influx of bargain second-hand imported cars has caused new cars purchased locally to lose up to half their value in just two years.
Car agents told The Times Business that owners attempting to trade in their old cars for new models were shocked when they or their affiliate dealers informed them that cars only 24 months old have depreciated by 18 to 50 per cent.
The new registration tax regime which came into force in January coupled with a weakened sterling has spurred a flood of second-hand, mostly high value, bargain imports from the UK. Second-hand car dealers and individual buyers are now venturing across northern Europe in search of a good buy.
The rush for second-hand imports has kept clients away from showrooms and agents say new car sales are currently only being driven by brand loyalty. Meanwhile, one agent said the slowdown has forced it to lay off some workshop staff and to review associate operations.
Malta's car agents employ around 800 people.
"Depreciation is calculated at actual cost," an agent explained. "Second-hand cars are only valued at what they will fetch on the market in this new scenario. High value cars are being brought to Malta at a fraction of what they used to be worth on the local market. That has dented the value of cars at the lower end of the scale."
Describing the new car business environment as "challenging", the importer said that unless the ‘haemorrhage' that has been created by the authorities when the new legislation was enacted is addressed, there could be serious consequences.
"Measures need to be taken quickly," he warned. "Everywhere else in the world, governments have implemented eco-incentives or scrappage schemes to motivate consumers to buy new cars. Maltese agents and the manufacturers would support a well-devised government initiative by offering incentives."
His sentiments were echoed by another car importer who said his company would willingly support a "buy new" scheme. The importer confirmed that his company was seeing CVs submitted by workshop staff looking for work increase over the past few weeks. Many clients enquiring about trade-ins were opting to keep their cars for longer rather than losing thousands of euros.
"We are not seeing a bright future for the new car market," he said. "On the whole, our sales have thankfully kept last year's pace only because of the badge we represent. Our closest competitor has fallen behind by 300 new car sales. It is not healthy. We have lost sales on the saloons, but we are starting to see second-hand hatchbacks and MPVs being imported, which is worrying."
Admittedly, consumers do stand to gain from the new scenario as agents slash prices on entire ranges by thousands and attractive offers on new cars are launched more often than ever before. The agents the situation is unsustainable.
"The new car market is managing by crisis," the importer warned. "Agents have to adhere to legislation and stringent manufacturer standards in every aspect of their operation. That's besides the millions of euros invested in new showrooms to offer better customer care. Fewer new car sales affect a workshop. Typically, owners only have their cars serviced at agents' workshop until the warranty expires. Workshop staff is being affected, but sales staff could be let go by some agents if the situation worsens."
Meanwhile, the second-hand imports issue has also affected insurers who have been faced with a challenging balancing act: establishing the value of second-hand luxury cars bought for a song which still incur expensive repair costs.
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Bill Khan
May 18th 2009, 18:05
Old or new it is crazy to have as many as 190,000 registered vehicles (590/sq.KM) on a a small island. Bad for health.Bad for economy. Absolutely crazy. Get rid of them. walk or cycle for better health. Get rid of high cholestrol and high blood pressure and blocked arteries.
Edward Zammit Tabona
May 16th 2009, 21:46
To Eric Frendo:
unfortunately we live on a small island, & by and large everything on the island is more expensive, so we all have to live with it!!!! our markets are small, and turnovers are not like in the EU market therefore everything is bound to be more expensive. i would rather pay a little more for something new rather then have hand me down's, I would rather know what i am buying then what i will get if i had to buy second hand!!
N.Attard
May 16th 2009, 13:41
With the new reg tax system the only advantage is that small new cars are now cheaper. Still they are not even close to the price of new cars in Italy, UK, Greece etc. All the govt has managed to do is to turn our nice island into Europe's scrapyard. Instead of offering incentives to buy ONLY new cars, the new tax regime is forcing the hard working population to buy second hand cars from the UK and motorbikes from Italy. Can anybody blame us? No. With our miserable salaries and very expensive new cars (I am referring to normal family saloons not the ridicoulsly un practical small cars which went down in pice) the Maltese have to buy what other EU countries get rid of. One other problem is the huge depriciation existing cars have suffered. My car's market value got reduced by Euro 5000 due to the now cheaper imports. Obviously this will force me to keep my car for another 10 years to at least get back the money I spent. The new system has not worked to help the environment. Not at all! It just generates more money to the govt. in licence fees.
G Bugeja
May 16th 2009, 13:10
I looked up the price of a new German luxury car from Germany (with the profit of the dealer included), added VAT and Registration tax and went to the local showroom to compare like with like. Surprisingly the cost of the car in Malta was 12,000 euros more. When i asked the salesman about this - he said the discrepancy was to import and insure the car !!!!
J. Buhagiar
May 16th 2009, 11:44
Like I said before. Car Agents have been repeatedly told by Manufacturer that 80% of the money comes from Servicing Labour & Parts.
Probe into why new car owners do not service and buy parts after warranty period is over - and you would resolve this.
TIPP: Knowledge is power. Agent's employees have the knowledge. Pay them well enough so that they do not leave after you train them and after they gain the experience. This comes at the expence of that the company does not remain a lucrative cash cow for all the luxuries Agent Owners could dream off.
Goverment too needs to change. You cannot LOVE EU practices - remove all subsidies on water, electricity, bread, gas, etc and post these to incriment additional Goverment Revenue. Then by contrast, you beat around the EU practices you do not like and change Import Tax to Registration tax so that you pocket the money still.
I love the EU - Agents and Goverments get what they deserve eventually.
So although these agents have in fact been the driving force to join the EU. Now the EU has and will eventually leave them no option but to do what is right.
Eric Frendo
May 16th 2009, 10:41
To Edward Zammit Tabona:
Maybe I am alone in this world but when I'm going to buy something I look at the price and the quality. And if I'm buying the same thing I look at the price not whether or not I'm doing a good job for the local economy.
Why does a new Ka from the UK starts from 8950 euros and from Malta starts from 12550 euros? A mere 40 per cent more. Why? Because our wages our 40 per cent more than in the UK?
joe scerri
May 16th 2009, 09:41
Maybe our car importers could tell us why the same ORIGINAL spare part costs 1/4 the price from the UK?
Or why spare parts are out of stock and take months to arrive? Do they get the parts using a sailing ship?? I can order anything from anywhere in the world and have it delivered in days.
When business fleece their customers its OK but when they feel the pinch then they start complaining. Charge us a fair price and provide a decent after sales service instead..
David Vassallo
May 16th 2009, 08:42
Do car importers wonder why clients stop servicing their cars at the local agent afterthe warranty expires??
Customer satisfaction is a priority as well as value for money in these times.I recently visited Fiat to service my 2 year old car as well as some warranty work. I was charged 1.5 hours worth of labour (€52),for a job (oil and filter change) that didn't take more than 45 mins,(I was there). When I queried this I was told it was standard charge!!
No wonder they discourage clients in waiting for their cars.
Do they still wonder why clients stay away after warranty is up??!!
Max Bartolo
May 16th 2009, 00:41
Although the local automotive market has changed drastically over the past few months, one can only feel that it is a change for the better. As with every change, there will be those who suffer and there will be those who prosper. A change, however, must be met as a challenge, especially by those whom it may affect negatively. I sincerely hope that car agents find the ways and means to remain competitive, benefiting the local market as whole. A car, after all, is always best new.
Max Bartolo
www.maltacarmarket.com
George Poitier
May 15th 2009, 22:33
Skinned alive for the last 30-40 years and still trying to get their way. The richest people in Malta all happen to be associated with the import of new cars, strange one askes. Well bye bye monopolies and bring on the competition. Lets us all take a share of the profit cake and let us hope money under the table doesn't change the law again. It happens to often here in Malta.
Joe Fenech
May 15th 2009, 22:29
G Zammit:
It's a pity that there are too many ONLY IN MALTA in this piece of rock!
Mark Cristiano
May 15th 2009, 19:42
Gasan has just reduced the Kuga from abt €45K to about €38K. However in the UK you can buy a new 2009 model top of the range with full extras including leather interior for only £20K with Considering the duty to be paid it will still be cheaper than Gasan's, which is not so specced up. Also how come when the exchange rate is against the dealer the price goes up, but now that sterling has changed, most prices stay the same?
steve elliott, uk
May 15th 2009, 18:34
car dealers in malta have had it too good for too long. the motorist is now in the driving seat. good luck to you all
Ray Zammit
May 15th 2009, 17:33
As they say,only in malta,we all know the score & unfortunately it woukd not change unless we do a petition & send it to Brussel about the prices of cars & d so called roads,if i buy a war tank for our roads still needs 2 be looked after a couple of kilometers!!!What have been promised from the so called meps & politicans never delievered & again now that d eu elections r on our doorsteps r continuing promising!!!When we r going to learn to vote wisely,i will wait & see d result,after we don't need to mumble because it will b your fault.
J. Buhagiar
May 15th 2009, 16:45
ALL, ALL Car Agents are clearly warned by the manufacturers that there is no-money in the sales of new cars.
Le me say this because it is very very important.
The importer that warned that
1) fewer NEW car sales effect the workshop's revenues is right. Problem is that it is because, like he said, new owners only service their new cars for 2 years i.e. warranty period ONLY.
Why? Cause effectively he says that; Afterwards, they all go service the car/buy parts from elsewhere i.e. third-parties!
All Agents are told that 80% of the money comes from Servicing, Repairs and Parts Sales not from new car sales. No source and application of funds will ever make the investment in a showroom and all worth while - Not unless Agents Turn Around their mentality and understand what the manufacturere is telling them explicitley.
Not even the manufacturers make a profit from the sales of new cars.
Unlearning the old way and Turning a Company around is not easy, We know.
To look at your business as an investment, you have to look into WHY do customers leave after warranty period is over.
No-1-Priority is Customer Satisfaction ? Is it?
dennis mackie
May 15th 2009, 13:11
Well perhaps the New Car Dealers should get into Used cars if that is where the market is. Go with demand and be flexible.
G Zammit
May 15th 2009, 11:40
Where in the world would a stereo in a new car be classified as an 'extra' when buying a new car ????????
ONLY IN MALTA!
Colin Camilleri
May 15th 2009, 10:54
Gentlemen, do not blame the resellers, blame the government. All locally purchased cars have already the horrible registration tax included. If you import a new one, even a second hand one, you will be ripped apart by the maltese government, ooopppps sorry GonziPN.
Try get a new car from the UK, add transport and registration tax on top and compare to an identically specced new car in Malta. It may end up more expensive.
Ivan Visanich
May 15th 2009, 09:16
To continue,we had this problem with japanese cars a few years ago,five years ago up till last year everyone was buying dirt cheap,japanese hatchbacks,now these are being shifted for larger european saloons with the consequence that these Japanese hatchbacks have lost between 50 to 70% in value again,Insurance companies list them as grey imports decreasing their value even more,what was wort it then,a Lm4,000 used car or a Lm5,000 new one of similar spec but a different brand.Same will happen with all these big Mercs and Beemers in a couple of years time,The last budget was supposed to address the use of new emmission friendly cars but in the meantime registration taxes have been reduced drastically that now we are not just the rubbish bin for second cars but a bigger skip for polluters....It maybe true that cars may be cheaper abroad but what about aftersales then,a typical London dealer charges anything between a 100 to 200 sterling an hour for labour costs whilst here in Malta the average is 30 euro per hour so do not think that even though they buy cars cheaper they are cheaper to run,just read a copy of What Car magazine.
E. Azzopardi
May 15th 2009, 09:11
It is utterly useless for the government to tell the people to scrap their old cars and buy news ones which are eco friendly when we have all these buses, trucks, vans and even small private cars emitting all this hazardous smoke. It is simply useless and we are all kidding ourselves. But they cannot see this apparently. Everybody can accept those responsible !!!!\
So, my car is still very good and eco friendlyas took grreat care of it and I will not change it, for now at least until I see this much hailed " transport reform !!!!!" And why don't we have wardens or police who check cars on the road and not only for smoke but for tyres etc etc.
But why am I wasting my time writing this? After all nobody seems to listens. Hope, oh dear hope, you are eternal.
Ivan Visanich
May 15th 2009, 08:58
Whilst I do not agree with many of the comments,I myself work at a main car dealership,my company invested hundreds of euros to keep up with the manufacturers requirments standards,whilst a back street dealer can sell premium second hand cars on his forecourt without any standards at all,let alone that some of these said dealers would have no trading licence,they just scatter cars all over the island with mobile numbers fixed to the windscreen and apart from that these are for sure making much more profit than new car dealers are making on their new cars.On another note,cars bought for fish and chips money are normally cars with many miles on them,is there any law to check for clocked mileage before a car is sold from a '' dealer '' in Malta to an individual.What about the running costs of these vehicles. ?.servicing costs,insurance,road licence,fuel costs,Is there any need to import 300 bhp cars just to impress our neighbours and then we can't afford a genuine oil filter for these cars and try to find the cheapest one on e-bay ?.What will be the re sale value of these vehicles once the country is flooded ?.
Christopher Micallef
May 15th 2009, 00:24
We have a super high registration tax in order to limit the number of cars on the road due to our small island. Yet, this has failed, as we love cars and there is no serious alternative (public transport anyone?). Government has made one positive step in reducing the registration tax and shifting registration tax and licences towards the particular power, emissions and length of a motor vehicle. But this is not enough. A clear comparison with advanced states as the UK and Italy clearly shows that our tax regime is too expensive. Government should reduce these motor-related taxes immediately, making the purchase of new cars affordable. Significant invesment is needed in our road network, and this is a wonderful time to embark on such projects, so that the economy can be boosted in this time of recession. Scrapping schemes could be considered in order to help take old cars off the road, while incentivising the purchase of new cars. This collective set of measures would succeed in helping our car fleet become progessively newer, while also helping people avoid having to purchase second hand cars from abroad.
A. Ellul
May 15th 2009, 00:18
Old cars, new cars, what's the difference as long as these are VRT'd? Why do the authorities, abetted by new car agents, try to demonise older cars? We have our VRT test lanes; if a car passes the VRT test, then its as good as a new car. My experience is that emissions are more related to the qaulity of manufacture than old age. I have seen not dso old cras pumping smoke in front of me, while my 15 year old car bought a second hand from Japan is still smoke free and passes the VRT test with flying colours; very low values of monoxide and particulates.
One more thing: Why do we have to buy new cars to drive on 40 year old potholed asphalt?
Cedric Vickers
May 14th 2009, 23:54
Reading all these comments below i can quite understand and relate to these people, how they were conned by car importers and car dealers in Malta. Alot of people said to us before leaving the UK to invest maybe in a property in Malta, to beware of the rouge Maltese car salemen, actually as it happens they are true to the word, i wouldn't buy a car from a Maltese garage or better still give them a second look, i treat them with a pinch of salt cause i think they are out to con, once u pay the money they just don't want to know afterwards the supposedly after sales service, thats the biggest laugh of the century, in the UK it works fine but in countries such as Malta in this case i say think twice and then think again, in anycase their days are now numbered by all account according to some bloggers.
Michael Gafa'
May 14th 2009, 22:29
tough luck to car agents who have been making loads of money on people's backs for years...now that we're in EU...its a free market and its time to revise the prices cars are sold here.....bring them on those luxury cars with low prices!
Edward Zammit Tabona
May 14th 2009, 22:08
having read all the comments above, it has compelled me to add my comments. it seems that these citizens would like malta to be a second hand country. all these "inherited' car companies have had to invest millions of euro's in upgrading there establishments to conform to EU standards, besides retaining employment to all the employees and their families. also the pricing of the cars is mostly made up of taxation and that's what makes the prices higher than new cars in the UK or other countries. one must not forget when ever cars are importred they require the local agent on the island for the serving and parts. therefore it is imperative that these agents should be treated with respect, because they have serviced our economy. useless & unwarranted comments from people that do not support the Maltese economy and do not understand in what it means in personal worry and sacrifice to run a business in this day and age!!!
Nigel Lawrence
May 14th 2009, 21:21
there seems to be very little sympathy for the local car trade. TOUGH LUCK!
CHARLES E SPITERI
May 14th 2009, 20:30
SEWWA JGHIDU IX XEMX TITLA U TINZEL GHAL KULHADD.ILKOM TISIRQUNA ZMIEN.SA F LAHHAR MA GEJNIEX AKTAR BZONNKOM.
S. Camilleri
May 14th 2009, 20:24
I agree with Dominic Fenech on this. Incentives to buy a new car should be tied to scrapping of a very old car (maybe 12+ years). Replacing a car after just a few years has NO environmental benefit and in fact may have a net negative effect What about the CO2 emitted in the production of the steel /aluminium used even if recyled. And what about the CO2 to bring the car to market.?
Matthew Costa
May 14th 2009, 20:05
To car agents & government; - with all due the respect, but do you really think that we Maltese are that stupid????!!!! I can buy a Ford Fiesta, new from showroom, for 11,000Eur from the UK but i choose to get the exact same fiesta for 17,000Eur from Malta. I can buy a new Mercedes Benz E class, for 29,000Eur from a UK showroom but i still choose to pay double the price from our generous Maltese car agent - you see, that is how Aristotle would have defined stupidity! More stupid than that would be the fact that i will drive my newly bought (from the very generous Maltese car agent) Mercedes E class on our horrible Maltese roads - that would make me loose my sanity!!!
A.Mifsud
May 14th 2009, 19:51
Competition is the only way for the consumer to have a good price and quality service for what they pay. Everyone should adapt for it. NO to monopolies. Recently I've been in the UK and I bought quality braned clothes half the price of what we pay here in Malta,,,,not to mention the fantastic car my relative bought at a bargain price. Used uk cars are well maintained, regularly serviced and dealers are very honest to give you what you pay for. Dealers in Malta give us rubbish for the thousands.
Simon Dimech
May 14th 2009, 19:08
But the biggest problem of all remains! Our roads! No matter how much money one will save by by-passing our local leeches, rest assured that in less thn 2 years you will have paid the difference in services and what not!
So really, at a different tempo, but THE SONG REMAINS THE SAME.
D. Xuereb
May 14th 2009, 18:59
Nobody feels sorry for these people for sure...If you want to earn your clientele.... Beat the prices, offer better services...WORK FOR IT !!! It's useless to cry out for help........
T. Schembri
May 14th 2009, 18:02
Maltese public please wake up. Have non of you realised that the main difference between the price of new cars in Malta and other EU countries is the tax. We Maltese are being forced to buy second hand cars at new car prices due to the high taxes levied. The main culprit is the tax system.
Joseph Cauchi
May 14th 2009, 17:55
Very well said, Mr. Dominic Fenech.
The other thing is, “You scratch my back and I’ll scratch yours”.
Perhaps, the revised road tax was “Payback” time, who knows?
../..
C. Scerri
May 14th 2009, 17:48
Can these agents explain how a small engine part from the official supplier in South Africa costs 93 Euros, from the UK 97GPB but from Malta Euro 240??? This happened to me this week - do they think that I shall be tempted to buy anything directly from them - they must be joking - it is cheaper for me to fly to the UK, buy it and come back.
And now they are crying crocodile tears to try and force the government to change its regulations!!! Come of it - don't they know that we are in the 21st century, the era of the internet and integrated with the EU. If you do not like it, close down, others will take your place!
B.Fenech
May 14th 2009, 17:16
I refer to R.Gatt comments...... ``@ New car and 2nd hand car importers - you've been skinning us alive and taking us for a ride both with the cars and the parts for ages. It's your turn now to be taken for a ride. Enjoy the ride.'' It now seems that it is the turn of the UK 2nd hand car dealers to skin the Maltese and take them for a ride by conning them with their used cars. Enjoy the ride and consequences Maltese buyers.
Robert Caruana
May 14th 2009, 16:54
Dominic Fenech is perfectly on all counts. The environmental argument in favour of new cars is rubbish. It means a perfectly usable old car is taken off the road, transported to I don't know where (fuel used, emissions of greenhouse gases etc), dismantled and recyclable parts reprocessed (again at a cost in terms of energy used for the process); Now add to that the environmental costs (energy, raw materials etc) of manufacturing a brand new vehicle, the costs of transporting it to the showrooms of our esteemed new car agents etc.
As long as a car is very well maintaned keeping a good car for 10 or 20 years ends up being much more environmentally friendly than going through 4 or 5 new ones for the sake of a few grams of carbon dioxide saved per kilometer. It is also much better for the owner in economic terms. Of course for new car manufacturers and their agents it is another story altogether.
Dominic Fenech
May 14th 2009, 16:26
The idea of encouraging people to buy new cars is mad. It is environmentally unsound (as the lower emissions attributed to newer technology are offset by the wastefulness of scrapping perfectly good used cars). It is socially unjust, because a large section of the population cannot afford to buy a new car every few years, yet such people are penalized by being taxed on an environmental pretext for driving old cars. It is economically stupid, because it hurts the country's balance of payments -- the example of other countries actually subsidizing consumers to buy new cars makes sense only in those countries which have a car industry of their own. Plus, older cars keep thousands of workers in a job (mechanics, panel beaters, upholsterers, etc.).
R. Gatt
May 14th 2009, 16:22
@ New car and 2nd hand car importers - you've been skinning us alive and taking us for a ride both with the cars and the parts for ages. It's your turn now to be taken for a ride. Enjoy the ride.
Fred Lewis
May 14th 2009, 16:17
re; Ray Zammit as a foreigner residing in this country, you asked whats wrong here? well my friend if you ask me i tell whats wrong:- the ordinary working class man is being taken for a ride, and it has gone for so long that your governing body just don't know where to stop, racken it in.If you ask me now that Malta is a eu member they are just abusing the system, so i say come on play the white man's game and pull your socks up, give these guys a break and fall in line with the rest of us in EUROPE!! i'm only now sorry i imported my family car in and costed me double to get it on the Maltese roads after re registering it twice over., i wish i never set foot on this place now., the worst part now that if i had to take it back home again, its going to cost me once more again to register back to the original country of registration., its a never ending story here with this lot. Fred Lewis (Cardiff).
S. Scerri
May 14th 2009, 15:54
Interesting comments:
"Typically, owners only have their cars serviced at agents' workshop until the warranty expires." - Of course they do!! What with the exorbitant hourly rates charged, expensive parts and imaginary faults which seem to crop up every time one visits the servicing department for anything!
"That's besides the millions of euros invested in new showrooms to offer better customer care." - Yes sure... I wonder where the "millions of euros" came from??? No wait! It's obvious no? Their extremely generous servicing charges!
fabian muliet
May 14th 2009, 15:18
for once the Maltese consumer has got lucky, (well almost). cars are still way to expensive compared to the rest of the e.u. and now it's the new car importers turn to complain does it ever stop on this island why do we (the consumer) have to carry the whole burden by paying much much more for a product or service i.e. flights just to keep people at there jobs!!!! Now that we're in the e.u. you can either compete or close down.
Joseph E Briffa
May 14th 2009, 14:44
New car importers - maybe some half a dozen - have been having it so good for decades now. Their excuse for the substantial mark-up is that the local market is small and that they are employing some 800 people. Since the market has been freed they are obviously feeling the pinch...good for them and even better for the consumer. Mercedes BMW and Jaguars in particular have an extremely high mark-up..new ones sell for about 60%n more than in most of the other EU states. And who are the main beneficiaries? -the importers who lead a life of lazy luxury. THEY DON'T WORK FOR A LIVING AND PARADE IN THE TOP MODELS OF THE BRAND THEY IMPORT, HAVE THEIR YACHTS, TRAVEL ROUND THE WORLD AND PROBABLY HAVE NEVER DONE ANY WORK IN THEIR WHOLE LIFE; THEY JUST INHERITED THE BUSINESS FROM THEIR FATHERS AND JUST CARRIED ON. To boot they don't even keep an adequate supply of car parts - one hase to wait for 3/4 weeks for the replacement of a simple hub cap. They should stop moaning and groaning and SLASH THEIR PRICES BY 30% TO COME IN LINE WITH THEIR EU COUNTERPARTS OR QUIT!
Paul Savona
May 14th 2009, 14:37
The "haemorrhage" is only to the detriment of the New Car dealership owners.
The general public only benefit from buying second hand imported cars.
It is a sorry state of affairs when it is cheaper to buy a foreigners used car, ship it over and pay commission to the dealer than to buy a local second hand car.
Are they proposing that they increase the prices to the detriment of the general public wishing to buy a car?
Janet Spiteri
May 14th 2009, 14:33
Well ... while I say thank you for Ms. Ripard's report .... I also say "so what?". I guess this is good news and nothing to worry about really!
Sorry but now you have to forget earning thousands over thousands of money! Well, try to adapt like we did already!
david farrugia
May 14th 2009, 14:06
prices for new cars are not dictated by agents but by the high registration tax imposed by government,hence the different prices in malta and italy
C. Cuschieri
May 14th 2009, 13:47
from most of the comments I've read, I think Maltese customers, myself included, are the real whiners! I'm already fed up of hearing people complain about used UK car imports! In a free market, the customer has lots of options available, and that's the beauty of it ... however, you ultimately get what you pay for
JOHN BORG
May 14th 2009, 13:39
kull min qed jimporta dawn il karozzi, ftit qed jghati kas ta kemm huma il licenzji taghhom is sena id diehla!!!!!! il karozzi kollha li jigu irregistrati minn din is sena 2009 il hlas tal licenzji jinhadem fuq is CO2 tal karozza , ezempju karozza miz zghar nett jekk ga ghandha hames snin thallas E151- LM 65 li jibqa tiela ghall E324- LM 140 fi zmien ghaxar snin.
A Zammit
May 14th 2009, 13:37
Most people here are missing the point. The new car improters never "had it good". Car prices are higher than in the rest of Europe simply because of the exhorbitant taxes we pay on them and for no other reason. I have a feeling new car importers couldn't care less whether the consumer is taxed 1 Euro or 10,000 Euro. At the end of the day the customer is paying the tax on the car, not the local agent. What's going on right now is that people are taking advantage of a favourable exchange rate and a flawed second-hand vehicle valuation system.
Michael Neville Cassar
May 14th 2009, 13:32
We been had by EU suporters and now everyone knows that we the cosumers are less then second class. What do the car importers expect ,that poeple are going to continue buying at high prices? and what about the inport tax? of course the roads, spares,yes we have been had.
Gilbert Busuttil
May 14th 2009, 13:24
Honestly I don't care about what car importers think. I bought three cars in my lifetime and they were all 2nd hand...why?Bbecause new car dealers rip you off. Now the tables have turned and finally the consumer has the option to choose the best bargain. A car costing 10000 gbp in uk will sell for 25000 euro locally....tal-misthija. And if car importers threathen with loss of jobs...well it's not my problem now. Car importers have had an easy ride so far ripping people off...so now deal with the competition. If I had to choose between my pocket and other jobs...well I choose my pocket. so if you expect the govt to back you out at my expense...think again!! Free market at last!!
Justin Spiteri
May 14th 2009, 13:22
This has all been coming a long way. I'll only say one thing....
When i see a brand new BMW 123d being sold in Malta, by the agent, for: 26,596 EUR and 64 euro cents, which is the retail price excluding VAT in Germany, then, i'll side with the new car agents.... (www.bmw.de ... click 1'er, and click Preisliste BMW 1'er)
Till then, you deserve the trashing, sorry.... and i mentioned BMW just as an example, all brands in Malta have similar difference to european recommended retail prices.
Justin Spiteri
Ray Zammit
May 14th 2009, 13:07
It is unfair that we form part of the eu and the gov impose reg fees on imported second hand cars from eu.Were is the freedom of movement that have been promised related to cars!In uk a s/h car passat 1 year old diesel sells for less than 10,000 ewro and same model here new more that 30,000 ewro,whats wrong here!!!Unless the importers have serious talks with the local gov & find a solution that benifit both d consumer and importers sales will continue to decline and the most ppl that suffer r the employees.The british goverment have a scheme that if you trade your old car more than 10 yrs old u r guaranteed £2000.Prevention better than cure b4 it's 2 late.
DCamilleri
May 14th 2009, 12:27
For as long as i can remember it was the consumer who had to pay through their teeth for any type of car - be it new or old. The car agents have had a field day for a long time. To top it all the car licenses have gone up to the extent that certain cars have completely lost their value. My car is now worth next to nothing and was given just so when i tried to sell it..although the insurance companies stuck to the percieved market value. The only choice left for me was to scrap mine and import a beautiful second hand car for almost half the price i was asked for a second hand car in Malta. Good luck to people like me who have sufferred long enough!
John Falzon
May 14th 2009, 12:19
Here are some basic business ideas for the car agents to think about:
Focus more on the servicing side; Example: I have been loyally taking my (locally purchased from new) Toyota Corolla to the local agents for the last 5 years. Ok service has improved a lot since I went for my first ever service there (to my extreme shock the floor manager at that time had been very very rude). However it is still not enough. What do I get for my loyalty ? For the money I pay I expect at least to be able to speak to the mechanic who is working on the car, or at least see the work being done. Personally I am sometimes not at all convinced something needed to be changed - for instance should front brake DISCS need changing after just 4 years from new ? I never even saw the old ones so as to see the damage for myself. Such issues (which do not occur with your local corner garage where you can talk to the guy while he works on your car) PLUS its cheaper. An occasional free checkup wouldnt hurt either.
Steve Galea
May 14th 2009, 11:45
I can't understand why the new car importers are crying foul after 2 decades of having legislation which clearly favoured them and not the consumer. The new car importers simply need to adapt to the new conditions in the market, and slash their prices if they want to compete. I recently bought a brand new bmw from Adam Cini motors and he gave me a much better price on it than the new car importer. The car also came with it's standard manufacturer's warranty, so it's quite clear that I and consumers like me can't complain about this new free market scenario and the recent legislative developments.
JP Barthet
May 14th 2009, 11:43
moan moan, groan groan... as the Maltese saying goes...." xi darba tmiss il-papa", & indeed popes these new car importers have been!!
In typical arrogant & pompous Maltese style, coupled with massive delusions of grandeur, these so called magnates of the Maltese car industry now have the audacity to look at the country in the face to complain, whine and bitch about the Maltese populace finally finding a way to save moeny AND get good value for its Euro!!
Rather than play cry baby & expect the governemnt to introduce changes that again will help protect their revenue streams & life styles, they should be pulling their socks up, start offering real service to their clients, & ask for even more real prices which compare well to those found throughout Europe & possibly on the Internet!!
Which begs me to point out to these so called clever business men and women, that they are not the only ones who have "suffered" as a result of a more open & competitive market since we joined the EU! They are just one of the last ones that have lost their protection from the government!!
Hooaah!!!!!!!!!
Steve Said
May 14th 2009, 11:41
competition competition.......car agents have had it too good for far too long. Unfortunately these people just don't know competion is.
Nigel Lawrence
May 14th 2009, 11:38
The rush for second-hand imports has kept clients away from showrooms----------
NOTHING quite like a bit of competition!
Graham Crocker
May 14th 2009, 11:30
Andrew Agius
That would make sense, the whole point of wholesale is buying more for less.
L Buhagiar
May 14th 2009, 11:29
Everybody wants the Government to help him. What nerve. The car importers have been making millions ripping the Maltese public for the past 10-15 years. No when the going is getting tough, the little boys are crying and moaning to daddy to help them. Why don't they pick up their act and do something themselves ie slash their prices and make them decent for the Maltese public to buy.
Car importers wake up. This is free competition.
Peter Aquilina
May 14th 2009, 11:29
The particular new car importer who stated that the authorities created a "haemorrhage" in their business is pathetically cheeky ! It is not the authorities that he should blame........He should blame himself and other new car importers like him who continue to charge exorbitant prices on their imported products !
I very well remember when in 1986, at a particular importer I wanted to purchase a cooling system pvc bleed screw for a F1.6 cc diesel engine. I was told that this costs 38 cents ( old currency) and that it had to be ordered from abroad and wait for 6 weeks to be in store !! Incredible !! It occurred that I went to the U.K. for a short stay.......by which I took the opportunity to buy it from a relative car agent there ..... it costed : 9 pence !!!!!!!
No wonder how these agents build their showrooms " to offer better customer care" LOL !
If brand new car importers wish to stay in fair competition with other ( used car) importers they should seriously revise and lower their ridiculous high prices ! They may get price ideas by watching car adverts shown on Italian TV stations.
Vincent Pace
May 14th 2009, 11:26
Thanks to our Minister ably assisted by the totally incompetent people at ADT, we have become the dumping ground of Europe as fas as cars are concerned, driving on 19th century roads (see back page of the Times today) with all of us being subjected to toxic emissions from buses which ADT have ignored for this lasat year with the excuse that reforms are on the way. Parole, parole, parole. We want accountability. Are not the salaries of the EXECUTIVE Chairman and the CEO paid from our taxes? What about a performance report? It's scandalous.
M.Gauci
May 14th 2009, 11:14
Rules have to be indistincly applicable I suppose. It is for the purchaser to choose whether to buy a new car or a 2nd hand one, from local or another state within the EU. The government should not legislate in favour of local car importers putting 2nd hand cars at a disadvantage. Otherwise it could be viewed as going against EU rules and case law.
The government should never legislate in favour of car importers and risking being labeled as protectionist. While the argument of environmental impact could be used, one may argue at the European court of justice that so do new cars have a sizeable impact on the enviroment and thus we should resort back to horse/mule means of transport.
Joseph Said
May 14th 2009, 11:11
Car agents had it so good for quite some time now. Consumers have other alternatives now, rather than depending on a local agent, who is so eager to rip you off.
I am a proud owner of a VW golf. However, one fine day my car overheated and I had to rely on my local agent for a cylinder head replacement. Spare parts are so expensive here!. I was asked to pay 1200 Euro for a re-conditioned head excluding workshop expensis. I thought this was too much, so I looked elsewhere. Cutting the story short, I had managed to get a brand new one from Germany for half the price, including freight. How about that ? No wonder car agents are worried about the present situation.
Government should implement eco-incentives or scrappage schemes to motivate consumers to buy new cars.
Deo Catania
May 14th 2009, 11:09
Once again we're flooding with second hand imports, difference being this time cars are coming from the UK instead of Japan.
Adrian Gouder
May 14th 2009, 11:06
The tide is turning and the consumers are finally getting the deal they should have always been getting. An example (from personal interest):
+ Citroen C4 Grand Picasso (1.6HDi) -
Malta price € 28,200 (from web site, incl. reg. fee of €6,000)
UK prices range from €15,600 to €17,500 (from web sites, incl. reg. fees)
UK 2nd Hand (2008, 7000 miles) - approx. €9,050
Yes, 2nd hand car dealers... keep it up!!
Joseph Attard
May 14th 2009, 11:04
For all those blaming new car importers for the 'old' expensive prices, note that the expensive price was simply due to the old tax regime. However these importers should stop grumbling and adapt their businesses to service these imported cars.
Locally bought cars under the old tax regime are falling in price simply because of the reduction in registration tax.
Simon Sullivan
May 14th 2009, 11:03
A car costing 25kGBP in the UK was priced at 60k€ in little Malta ...
no one will shed a tear for these new-car dealers who have like so many other had it way too good for way too long.
Joseph Cauchi
May 14th 2009, 11:02
.
One would be surprised to discover what mark-up is added on the landed CIF (cost+insurance+freight) price of a new car and then add the road registration tax + VAT.
Local new car importers normally make up a mark-up of 33% on the above costs, when in the UK, car franchisees do not normally make a mark-up of more than 5%!
So in this difference of mark-ups, isn’t it obvious that the car importers are MILKING the poor motorist out of his last euros and to top it all or as the Italians call it “Sopra Corna Bastonate” these car-importers have their own organization in order to safe-guard their interests; as others may call it a CARTEL!
Free The Market.
Time is up for the middlemen as now it is the concept of Multi Level Marketing;
i.e. Direct Sales From Source!
../..
rferriggi
May 14th 2009, 10:51
wwooooow!! hooow scaaary!!!
the kind and gentle protective big car agents are taking care of the public and advising that ''action needs to be taken quickly''.........!
what a load of hypocrisy after ripping off the maltese people to the bone for years and years.
shame on you......,,,,,, kif ma tisthux turu wicckom. sirtu miljunarji??
Matthew Vella
May 14th 2009, 10:45
Haven't car dealer made enough profits??
A friend of mine sold a Diahastu Charade to a dealer who told him it only costs Lm 500. The dealer put it for sale at Lm 1200, and guess what! He sold it!
If dealers won't to keep operating, they better put there prices down! Now-a-days its easy to buy a car online, and get it shipped over or driven overland. I prefer paying an extra EU 500 to dealer for the hassle, but with there charges it not even worth visiting a dealer now-a-days!
E. Curmi
May 14th 2009, 10:44
English Goverment did........
In the Budget on Wednesday 22 April, Chancellor Alistair Darling announced the introduction of a Government Scrappage Scheme, a £2,000 allowance on vehicles aged 10 years or over. On top of the Government Scrappage Scheme
The Scheme:
In exchange for scrapping your old vehicle and buying a new one the Government will contribute a total of £2,000 towards the purchase of a new vehicle
Be a car or small van weighing up to 3,500 kilograms (kg)
First registered in the UK on or before 31 August 1999
Have been registered to you continuously for 12 calendar months before the order date of the new vehicle
In order to benefit from the cash incentive, all you need to do is take your eligible vehicle to your participating Ford Dealer and select the vehicle you would like to purchase. Your participating Ford Dealer will take care of everything for you. This includes a full Scrappage service. The combined saving of £5,000 will apply when purchasing a Ford Galaxy Edge on the Scrappage Scheme.
Car buyers in Germany receive an EUR2,500 bonus towards a new car if they trade in a car over nine years of age.
Charles Cilia
May 14th 2009, 10:42
Maybe the days of waiting for months to get car spares due to the 'could-not-care-less- attitude' of the dealers are now over.
K Ellul
May 14th 2009, 10:36
So what is the problem?
Haven't we been ripped off enough by the New Car Importers?
Can't the New Car Importers handle the competition??
I think this is only healthy competition which would benefit the consumer. Oh and another thing, how about fixing the roads Dr. Gonzi? The goverment still is collecting thousands of Euros from car registration, be it new or 2nd hand.
Simon Robinson
May 14th 2009, 10:35
If the local importers are not competative with the rest of the EU, is this any surprise? Why should we pay double what are european cousins pay! With the general state of the roads, and the damage this inflicts on cars, coupled with the price of repair and the usual lack of spare parts makes buying a new car here not a very attractive prospect! I think a new system which is fair to the consumer and viable for all needs to be implemented. For as long as the consumer is 'ripped off' I will not buy a new car here.
Andrew Agius
May 14th 2009, 10:35
Cars aren't losing 50% of their "value" they're overpriced by more than 50% by the dealers.
It's heartbreaking to see on our TV car ads from the UK and then compare the price in Malta.
If the government want people to upgrade to eco-friendly newer vehicles then stop this closed-shop and lower the barely-legal import taxes. They can then increase road tax or fuel to allay some of the lost revenue while benefitting everyone on the island.
Do Maltese car dealers actually pay twice as much wholesale as UK car dealers?
Sue Mercieca
May 14th 2009, 10:26
Well- guess its the market economy ruling now.. and why not?? the tax on imported second hand cars is still quite high though more reasonably priced since 1st January 2009. I still cant see why to get a car to Malta from the UK one has to pay tax - when we are in the same common market - the European Union - and the registration tax was already paid up when the car was registered the first time. At the moment if someone gets a car from the UK for example - one has to pay tax upon its entry into Malta (to be paid within 6 months) --but if one decides to take the car back to the UK - one would 'lose' the tax paid. I was under the impression there was a free movement of goods in the European Union. Does not seem so in this case. Please correct me if I'm wrong
jcmicallef
May 14th 2009, 10:22
Oh, what a real pity.
{As if car dealers and agents really ever gave your second hand car any real value, yet they re-sell at exorbitant prices (I recall looking for a 2nd hand Hyundai Accent 6 years ago and being asked Lm 2,800, yet being offered just Lm 500 for my Mazda 323. I ended up buying a new car then).}
This symptom as many said, is only predictable and fair. And prices can even get lower. Cyprus is packed with 2nd hand cars with just a few thousand kilometers on the clock, all from the UK. BMW's and Mercedes abound.
The biggest local joke is the advert made by Muscat Motors, Gasan, etc on the Times for second hand cars - with 50,000 and 60,000 on the clock and with prices much. much higher than those brought from abroad. They are just shooting themselves in the tyres (instead of foot)!
Re penultimate paragraph, I would suggest that owners of new cars still make use of the agent's servicing and repairing facilities after warantee expires. Smaller garages still charge an arm and a leg, and may not be so well quipped for the electronics in today's cars.
Joseph Cauchi
May 14th 2009, 10:14
If this scenario is benefiting every Tom, Dick and Harry, then so be it.
This is what it should be, in a free market economy.
No more time for cartels and protectionism anymore!
Although still, the tax regime in Malta is TOO HIGH when one compares it to those of our partners in the EU.
../..
Alex Ellul
May 14th 2009, 10:07
Remember when the gov used to regulate even tinned tuna? since then we have been making progress. Now it's the vehicles' turn, one of the last vestiges of state control.
patrick mifsud
May 14th 2009, 09:51
all they need to do is to lower their prices on spare parts and services and they still can get a good turnover. these imported cars will still need spare parts so what the importers should do is to lower the prices of the parts. lately i have seen parts prices triple to compensate for the lack of business. consumers know that parts are cheaper to buy them on the net rather than going to the importer locally. the service rates also increased by two or three fold and these are keeping consumers away from getting the service done at the importers garage.
Joseph Schembri
May 14th 2009, 09:47
Serves new car importers right! I've been ripped off too many times by them even when buying their so called 'original' spare parts which still cost up to 4 times what generics cost. Last summer I had a 'clickety clack' noise somewhere in the front suspension which they they changed to a 'clickety clock' - I was charged E 800 for the privilege!
And until a few years ago they treated us customers as scum after the new car was bought. It is only now that they are feeling the pinch that they are training their staff in the most basic modicum of manners.
Joe Camilleri
May 14th 2009, 09:44
Well, haven't you made enough profit.
Shaun Camilleri
May 14th 2009, 09:34
This is why the govt should abolish this registration tax which is literally skinning us alive. I paid more in taxes than the actual price of the car, and will be paying 700Euros in 'Circulation tax' . Isn't that contribution enough??
The Agents will be putting pressure on the govt threatening with layoffs!
Second hand car dealers are literally using the new tax regime to literally making us throw our older cars away. A friend of mine was offered €600 for a punto, which a few weeks(or months) ago was being sold for €3,000 and that is the bare minimum.
And how about starting to get decent roads? About time innit?
Galea. L
May 14th 2009, 09:32
Haven't the new car importers had it too good for too long with their exorbitant prices when compared with those on the continent?
It's about time that the people started importing cars themselves and getting rid of the new car scrooges fees.
Marc Cassar
May 14th 2009, 09:28
Totally predictable.
In a few countries, the current registration is "bartered" when replacing the old vehicle with a new one. Second hand cars are discouraged by having higher taxes due to emissions.
a simple example:- a) Scrap your current car for about $750. b) Take plates to authorities, and transfer registration to new car (engine & chassis number) for a nominal fee of about $500. c) purchase new plates to reflect the year of manufacture for ... about $250.
In Conclusion - it pays the end user to purchase a new car - total transfer for about $1500 and a cleaner country.
a.camilleri
May 14th 2009, 09:20
the beauty of being in the EU is that trade opens up and people can choose where they buy from.besides that cars in malta have been way too expensive for a long time, compared with prices abroad.