Luxury car dealers look for ways to clear stock
One agent planning discounts of up to $20,000 for 1.6-litre cars
Some luxury car dealers are gearing up to lure buyers to their showrooms, beginning this weekend, in a bid to clear stocks of vehicles that will be reclassified as premium models from next February.
The move follows changes in the certificate of entitlement (COE) system, announced on Monday, in which a car's engine power will be included as a new criterion. Cars with over 130bhp or an engine exceeding 1,600cc will fall into Category B.
Dealers planning to go on a sales drive include Volvo agent Wearnes Automotive, which is looking to sell models like the S60 and S80. These currently belong to Category A - which caps engine displacement at 1,600cc - but will be re-classified under Category B next year.
Mr Victor Kwan, managing director at Wearnes Automotive, said the dealership will start clearing its 1.6-litre engine cars with "aggressive pricing".
COE system: What will change
Cars are categorised by engine capacity.
- Cars with engines of up to 1,600cc go into CategoryA.
- Cars with engines exceeding 1,600cc fall into Category B.
FROM FEBRUARY 2014
- Cars in Category A must not have more than 130bhp of engine power, on top of the existing rule that caps engine capacity at 1,600cc.
- Cars with more than 130bhp or an engine exceeding 1,600cc will fall into Category B.