Corruption Stifles Cambodia's Luxury Car Market
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Corruption Stifles Cambodia's Luxury Car Market
Thrifty shades of grey
In Cambodia, entrenched corruption has given birth to a grey market for new luxury vehicles – a market that threatens to force official importers out of the country and stifle the local economy
WHY WE WROTE THIS: Because systematic corruption deserves to be brought to light
Robin Spiess
June 13, 2019
On a cluttered Phnom Penh street, the sound of a mechanic’s drill echoes through the “Kim Srun Premium Auto” shop, bouncing between the brushed-steel bodies of luxury cars and rebounding off the tin roof above them.
The saleswomen are bored, barely raising their eyes from the floor as they answer basic questions about the new cars on sale at their dealership. The majority of 2018 and 2019 models parked on the lot are Range Rovers, their bodies and interiors covered in a thin plastic sheeting to keep them free from the Cambodian dust.
The saleswomen dutifully point out the new models, repeating from memory: the new Range Rovers are priced from $195,000 to $250,000, they say, while the 2018 BMW sits at around $130,000.
It seems like a good deal: the same Range Rover model at the country’s official dealership would sell for a minimum of $255,000. And, unlike at the official dealership, there is room yet to haggle at Kim Srun Premium Auto.
But a stream of questions about the cars seem to put the salespeople on their guard. When asked, the women say they do not have access to the cars’ import histories – buyers must contact the importer for that. No, they do not know the name of their importer. And no, it would not be acceptable for a buyer to call anyone – not even the official representative of the car brand in the country – to inspect any of their vehicles prior to a sale. All buyers must purchase these cars as they are – if they want the car at all.
Full article: https://southeastasiaglobe.com/thrifty-shades-of-grey/
In Cambodia, entrenched corruption has given birth to a grey market for new luxury vehicles – a market that threatens to force official importers out of the country and stifle the local economy
WHY WE WROTE THIS: Because systematic corruption deserves to be brought to light
Robin Spiess
June 13, 2019
On a cluttered Phnom Penh street, the sound of a mechanic’s drill echoes through the “Kim Srun Premium Auto” shop, bouncing between the brushed-steel bodies of luxury cars and rebounding off the tin roof above them.
The saleswomen are bored, barely raising their eyes from the floor as they answer basic questions about the new cars on sale at their dealership. The majority of 2018 and 2019 models parked on the lot are Range Rovers, their bodies and interiors covered in a thin plastic sheeting to keep them free from the Cambodian dust.
The saleswomen dutifully point out the new models, repeating from memory: the new Range Rovers are priced from $195,000 to $250,000, they say, while the 2018 BMW sits at around $130,000.
It seems like a good deal: the same Range Rover model at the country’s official dealership would sell for a minimum of $255,000. And, unlike at the official dealership, there is room yet to haggle at Kim Srun Premium Auto.
But a stream of questions about the cars seem to put the salespeople on their guard. When asked, the women say they do not have access to the cars’ import histories – buyers must contact the importer for that. No, they do not know the name of their importer. And no, it would not be acceptable for a buyer to call anyone – not even the official representative of the car brand in the country – to inspect any of their vehicles prior to a sale. All buyers must purchase these cars as they are – if they want the car at all.
Full article: https://southeastasiaglobe.com/thrifty-shades-of-grey/
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Re: Corruption Stifles Cambodia's Luxury Car Market
Sadly from my own experiences in town and in this trade, unless something meaningful is done, more and more dangerous cars will hit the Cambodian streets. The number of cut & shuts I’ve seen being stitched together is mind-boggling. People’s lives are being put at risk selling cars with unverifiable histories.
Re: Corruption Stifles Cambodia's Luxury Car Market
There is a big difference from the older (say 2004 - 08 ish era) than brand new luxury cars because of the minimal amount of damage needed for an insurance company to write off the car. While car shopping and looking at over several hundred cars recently, I found that a lot of the wrecked cars (before being repaired) were relatively easy fixes, some only needing a bumper cover and new foam and maybe a quarter panel and some paint, the frame being untouched.
I saw probably 10-15% of the newly arrived cars (coming out of the container in front of my eyes being bid on by various resellers), that were simply high mileage auction cars, and another 20-25% that had almost negligible damage and wouldn't mind driving one myself. Of course these were the more expensive cars because they were "no hit" cars, but a significant amount of the hit cars didn't seem too bad honestly. I've driven several salvage title cars in the U.S. and even wrecked one, and wouldn't mind driving many of the wrecked cars I saw if they were repaired properly.
But the newer LX570s and Rangies I saw were another matter, some of these cars had very obvious extreme damage (rollovers, and complete front end clips welded on), which makes sense since there's relatively high value still remaining on the vehicle and would need a big wreck in order to write it off. These I wouldn't touch with a 10 foot pole and are probably the worst of the bunch, which is funny because I would say those that are driving them often represent the worst of the bunch here in the kingdom, so I suppose it's only fitting.
I saw probably 10-15% of the newly arrived cars (coming out of the container in front of my eyes being bid on by various resellers), that were simply high mileage auction cars, and another 20-25% that had almost negligible damage and wouldn't mind driving one myself. Of course these were the more expensive cars because they were "no hit" cars, but a significant amount of the hit cars didn't seem too bad honestly. I've driven several salvage title cars in the U.S. and even wrecked one, and wouldn't mind driving many of the wrecked cars I saw if they were repaired properly.
But the newer LX570s and Rangies I saw were another matter, some of these cars had very obvious extreme damage (rollovers, and complete front end clips welded on), which makes sense since there's relatively high value still remaining on the vehicle and would need a big wreck in order to write it off. These I wouldn't touch with a 10 foot pole and are probably the worst of the bunch, which is funny because I would say those that are driving them often represent the worst of the bunch here in the kingdom, so I suppose it's only fitting.
Re: Corruption Stifles Cambodia's Luxury Car Market
I’ve also been car shopping and when I ask for the VIN number they either ignore me or pretend they don’t know what it is.
I saw a car (Lexus 450h) and attempted to scan the VIN and the seller went crazy and tried to say I was stealing info etc. luckily the Khmer guy I was with slapped him down (verbally) and told him to take a hike. It was a big seller with at least 200 cars.
I’ve given up for now. Mostly because they see a barang and the price goes up! I just tell them to fuck off, which I know they don’t understand but they sure know the intention.
Sent from my iPhone using Tapatalk
I saw a car (Lexus 450h) and attempted to scan the VIN and the seller went crazy and tried to say I was stealing info etc. luckily the Khmer guy I was with slapped him down (verbally) and told him to take a hike. It was a big seller with at least 200 cars.
I’ve given up for now. Mostly because they see a barang and the price goes up! I just tell them to fuck off, which I know they don’t understand but they sure know the intention.
Sent from my iPhone using Tapatalk
Don’t listen to Chinese whispers.
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