Luxury Car Importers and Distributors Eye Used-car Biz

Taipei, April 27, 2012 (CENS)--Several agents or affiliates of imported luxury car brands have begun to sell "nearly new" used cars driven by senior managers, also shortening the replacement period of such executive cars to only two to six months to access more used cars and build sales volume.

Hotai Motor Co. Ltd., local agent of imported Lexus, just added 50 used CT200h hybrids priced at about 85% of a new model to its newly opened used-car dealer in Hsinchu, northern Taiwan, as well as offer zero-interest loan of NT$800,000 (US$26,666) in 36 installments to buyers of used Lexus.

Beldare Motors Ltd., Volkswagen distributor in Taiwan, has tied up with two major car-leasing companies, Carplus Auto Leasing Corp. and Hotai Leasing Corp., which purchase hundreds of Volkswagens per quarter for their fleets, from which Beldare repurchases after six months at guaranteed prices to steadily restock its used-car fleet.

Industry sources said that sales of sub-three-year-old luxury imports have been very smooth. Local distributors or affiliates of imported cars operating used-car business said that typical used-car dealers can rarely find sub-one-year-old cars, which are usually executive cars and demos.

For agents and distributors of imports, sales of used cars can help sales of new cars by building sales channels as well as maintain used-car prices. More important, sales of these relatively-new cars can deter trading companies which import used luxury cars that often disrupt the local market.

In addition, nearly-new cars are still under warranty, so importers can continue to make profit from repair and maintenance, as well as promote such sales point.