Eurosports Global

Eurosports Global: The Straits Times notes that luxury car sales have stalled, with sales in 2H13 plunging by 85-92% for top tier brands like Lamborghini, Aston Martin, Rolls Royce and Ferrari. This bodes negatively for Lamborghini distributor, Eurosports, which saw Lamborghini sales plunge from 20 in 1H13 to just 3 in 2H13. The slump came on the back of two measures that rocked the industry: a tiered Additional Registration Fee (ARF) that raised the cost of a high-end car by as much as $450,000; and a loan curb that capped borrowing at 50% of a car's purchase price, to be repaid in five years. The tiered ARF has pushed the cost of supercars up by 20-25%. The likes of a Bentley Continental GT, Ferrari 458 and McLaren 12C now cost ~$1m, up from ~$800,000. Industry players are hoping that new models will revive buying interest. ~40 ppl have expressed interest in the $1.2m new Lamborghini Huracan, and Eurosports is in the process of converting these into firm, non-refundable orders over the next two weeks.