Some turn to vans as car prices soar

Some turn to vans as car prices soar
Above: A Renault sales consultant in a Kangoo van modified with glass side panels. Dealers are dressing up their vans to attract more buyers, reported The Straits Times. With prices of Certificates of Entitlement (COE) persistently going up due to a limited supply, car buyers in Singapore are currently seeing near-record prices of cars. Due to this, buyers have begun looking at cheaper options to get their ride, reported The Straits Times. Buying used cars is one option, with over 60,000 sold in the first 10 months of the year. This is up to three times of the full-year sales generated between 2004 and 2009. Others have turned to commercial vehicles, although as compared to 10 years ago, when buyers did the same, take-up has not been as strong. This is because the price difference this time around is not as much as it was then, when light commercial vehicles were selling at just below $50,000 while a compact Japanese sedan was going for around $90,000. Despite this, agents here are still trying their luck. For instance, The Straits Times reported that Renault agent Wearnes Automotive has dressed up the Kangoo van, retrofitting glass panels to its sides and adding roof rack and sports rims to attract buyers. A used-car dealer for Suzuki agent Champion Motors, Mr Richard Yap, told the paper that the Avery, a 660cc petrol van, is selling especially well. He attributes it to the van being small, reliable and convenient for daily personal transport, saying that women and small stallholders tend to be the buyers for this particular model. However, while the relatively lower price of commercial vehicles - around $70,000 for a brand new Renault Kangoo compared to a Toyota Vios 1.5 selling for around $100,000 - is a plus, buying these does have its drawbacks. A minor irritant for drivers who want to drive more quickly will be peeved with hearing the speed limit warning once they drive over 70kmh, which is the speed limit for light commercial vehicles. These cars also have a very low scrap value, because they attract an Additional Registration Fee (ARF) of only 5 per cent. Higher insurance premiums may also be a problem, with mature drivers having to pay $1,500 with a 50 per cent no-claims bonus, compared to $1,000 for a mid-size car. Rear passengers will also be stuck with sitting on the hard floor, as installing a sofa seat in the rear is illegal.