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Luxury car sales stall on higher tax, loan curb

Tiered ARF, borrowing cap blamed as luxury makes tumble by over 80%

Published on Feb 5, 2014 7:46 AM
 
The tiered ARF has pushed the cost of cars like the Ferrari 458 to about $1 million - up from around $800,000. Sales in the second half of last year plunged by 92 per cent for Ferrari; 91 per cent for Rolls-Royce; 88 per cent for Aston Martin; and 85 per cent for Lamborghini. -- PHOTO: FERRARI

Measures to cool the car market introduced in last year's Budget have hit luxury brands the hardest, with some reporting a sales drop of more than 90 per cent in the second half of last year.

Ferrari, Rolls-Royce, Aston Martin and Lamborghini were among the most affected.

Sales in the second half of the year plunged by 92 per cent for Ferrari; 91 per cent for Rolls-Royce; 88 per cent for Aston Martin; and 85 per cent for Lamborghini.

"It was a disaster in the second half," said Mr Andre Roy, chief executive of Wearnes Automotive, which represents brands like Bentley, Jaguar and McLaren. "If this was meant to slow down the sales of supercars, it has worked."

 
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TOTAL DISASTER

It was a disaster in the second half. If this was meant to slow down the sales of supercars, it has worked.

- Mr Andre Roy, chief executive of Wearnes Automotive, which represents brands like Bentley, Jaguar and McLaren, on the drop in sales for luxury car brands