High-end cars continue to roll off showroom floors

IN the past 12 months, Namibians bought 14 464 vehicles countrywide, with purchases ranging from business and convenience to outright luxury.

Last month alone 1 244 new vehicles were sold, according to data from IJG Securities.

The Namibian visited premium brand dealerships, as well as a used car dealer, to establish the price tags of some of the vehicles leaving showroom floors.

Last year, the most expensive car purchased was a Mercedes-Maybach S680, bought by Trustco owner Quinton van Rooyen. The Maybach currently retails at about N$5.2 million.

This year, M+Z Mercedes-Benz dealer principal Richard Slamet said the most expensive vehicle sold was a fully specced G-Wagon for about N$5 million.

He said the price reflects the vehicle’s premium status, as well as the additional costs associated with custom orders.

“The car with the biggest price tag that left our showroom floor was a well-specced G-Wagon at a cost of just over N$5 million. The dream of many is the Mercedes G-Wagon, a car that does not come cheap, especially when custom ordered,” Slamet said.

He added that Mercedes-Benz holds about 40% of the premium market segment, while brands such as BMW, Audi, Land Rover and Lexus make up the remainder.

Pupkewitz Toyota national sales manager Jaco Barnard says some luxury buyers are willing to wait several months for vehicles placed on special order.

He adds that vehicles in the six-figure price bracket are not always kept on showroom floors for various reasons.

“One of the reasons is that many owners of such pricey possessions want to personalise their vehicles and order them tailor-made via dealers,” Barnard says.

He says buyers of these vehicles range from motoring enthusiasts to business professionals, particularly those who work closely with clients.
“In general, it is for the ‘I arrived’ individual,” he adds.

Barnard says the most expensive vehicles sold by Toyota are Lexus models, the company’s premium brand.

The Lexus GX and LX are currently in demand, starting at about N$1.8 million, while the LX can reach around N$2.6 million.

“Customers of these kinds of cars are willing to wait for their custom-made vehicles from the factory,” Barnard says.

Audi is another brand with strong demand in the premium segment. Audi dealer Daphna Muller says one of their top-spec models sold for about N$3.7 million.

She adds that the client knew exactly what he wanted and walked into the showroom ready to buy his dream car.

Bank Windhoek’s vehicle and asset finance representative Amanda von Wielligh says one of the most expensive vehicles financed through the bank cost about N$4.5 million.

She says applications for luxury vehicles are assessed with special consideration, and higher deposits are often required because of the risks involved.

“Should a person want to finance a car of such a price through a bank, there are various factors the financial institution will look at,’ she says.

“Although banks generally require a deposit of 10%, there is a tendency to require higher deposits because of the risks involved with such high figures.”

She adds that clients are also required to insure vehicles in this price bracket, as financing them remains a significant risk for banks.

Independent insurer Angeline Wiese of Moresure Insurance says premiums on luxury vehicles depend on several client-related factors.

These include age, gender, the purpose for which the vehicle was acquired and how it will be used.

“Previous claims history and the amount of claims all play a major role in the calculations,” Wiese says.

M+Z Motors trade consultant Elmo van der Byl says vehicle depreciation depends on factors such as make and model, mileage and overall condition.

“Although there is no fixed formula, it is safe to work between 12% and 15% depreciation in the first year; thereafter, the margin decreases slightly,” Van der Byl says.

Spes Bona’s Pieter Senekal advises buyers to look beyond features such as screens and central locking, and rather consider a vehicle’s long-term resale value.

“Invest in a car that is reputable and tradable again,” he says.

As an example, Senekal referred to a 2003 Mercedes-Benz SL on his showroom floor, noting that after 23 years the owner could still recover the vehicle’s value, provided it was well maintained.

“Most premium branded vehicles go through a period of depreciation, then stagnate, and if you keep the vehicle well serviced at agents, the value can start to appreciate again,” Senekal says.

Buyers in this price bracket are generally assured that vehicles come standard with manufacturer guarantees and warranties, as well as service plans. Some brands offer service plans of up to seven years or 105 000km, while others extend to seven years or 140 000km.

Certain brands allow service plans to be extended at an additional cost.

Service plans are subject to terms and conditions, including that vehicles must be serviced according to requirements and at certified dealerships to ensure warranties remain valid.

VEHICLE SALES SNAPSHOT

Over the past 12 months, vehicle sales increased by 15.5% to 14 464 units compared to the previous year.

Passenger vehicles accounted for 41% of total sales, with 510 units sold, representing a 7.6% decline compared to October.

Commercial vehicle sales totalled 734 units, comprising 646 light commercial, 24 medium commercial and 64 heavy commercial vehicles.

Toyota leads across all segments, holding a 52.9% share in passenger vehicles, 73.7% in light commercial and 31.4% in medium commercial vehicles.

Volkswagen holds 13.6% of the passenger segment, Ford 11.6% of light commercial, Mercedes-Benz 25.7% of medium commercial, and Hino 23.6%.

In the heavy and extra-heavy segment, Scania leads with 26.3%, followed by Volvo Trucks at 14.6%.

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