Parallel Importers and Authorised Car Dealers – What are the Pros and Cons?

Parallel Importers and Authorised Car Dealers – What are the Pros and Cons?

After finding out the How to Get the Best Deal on a New Car in our previous article, we shall move onto another step in the process of buying a car in Singapore. Let’s dive deeper into the differences between Parallel Importers and Authorised Car Dealers, and how it would affect your car buying decision.

Parallel Importer and Authorised Car Dealer: How do they differ?

Parallel Importer and Authorised Car Dealer: How do they differ?

Firstly, what is Parallel Import and what do Parallel Importers do? How are they different from Authorised Car Dealers? Authorised Car Dealers are car distributors who have been awarded exclusive distribution rights from manufacturers like Toyota and Honda whereas Parallel Importers are resellers that buy cars directly from the brand’s home country and then import them into Singapore.

 

Car Prices

To be able to win exclusive distribution rights, Authorised Car Dealers will generally have more overhead expenses put into a lavish showroom, industry fees, marketing fees, distribution fees and sizable staff strength etc. In addition, they need to commit a certain quantity in a specific time period to the brand. You should know that when you go for authorised dealers, you are also partly paying for the distribution rights. Parallel Importers, on the other hand, have lower costs and therefore can price their cars lower.

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To be the first to know MHG Cars’ best prices, make sure to Like and Follow us on Facebook.

 

Financing Flexibility

Parallel Importers offer flexible loans for car buyers and generally have a higher loan approval rate. You can also choose from a wider range of financial institutions and also from the Parallel Importer’s own in-house financing. At MHG Cars, we offer various financing solutions through major banks and our solid in-house financing backed by MoneyMax Leasing. You can be sure that MHG Cars will get you the lowest interest rates and best terms.

 

Range of Car Models

Parallel Importers generally bring in a wider range of car models than Authorised Car Dealers and therefore are more likely to have the car model that you are looking for. For example, MHG Cars has the Toyota Camry Hybrid that is not available at the Authorised Car Dealer.

At a Parallel Importer, you will also have more than one brand to choose from, as compared to an Authorised Car Dealer, giving you more choices to choose from.

With Parallel Importers, you can get flexibility of options that can possibly help you lower the price of the car and also, you can buy cars from Parallel Importers with options comparable to, or even better than, cars at Authorised Car Dealers. Plus, you can even choose to do extreme customisations to the car that matches to cars at Authorised Car Dealers yet still pay a price that is possibly much lower. For example, you can buy from MHG Cars a Honda Fit, which you are not able to get from the Authorised Car Dealer, and do customisations to match the Honda Jazz offered by the Authorised Car Dealer, and yet the overall price can still be lower.

Browse our JDM Collection at MHG Cars.

MHG Cars has a wide range of car models. Browse our JDM Fleet.

 

Type and Availability of Cars

Parallel Importers’ cars are from the original designer and manufacturer whereas Authorised Car Dealers’ cars originate from the country of origin but are assembled in other countries. As such, Authorised Car Dealers’ cars may be more readily available than Parallel Importers’ cars. Therefore, you have to decide which is of more importance to you when buying a car.

 

Availability of Replacement Parts

Authorised Car Dealers are usually better stocked with spare parts than Parallel Importers. However, due to the relatively mass market nature of Parallel Import cars and if the car you are looking to buy is not too exclusive, there should not be too much to be concerned with as replacement parts can always be ordered from the country of origin. MHG Cars’ selected workshops are experienced and well-stocked with our car spare parts.

 

Servicing and Warranty

With an authorised car dealer, you get labour servicing and warranty. Parallel Importers generally do offer the same but they rely on independent workshops which may be risky to customers. However, some Parallel Importers get workshops that are backed by insurance companies. The risk factor therefore decreases for customers – in the event that the workshop ceases to operate, warranties of cars will still be backed by the insurance companies. You should make sure that the Parallel Importer that you choose does this as not all Parallel Importers do this. MHG Cars only work with workshops that are well-established and reputable brands backed by insurance companies. With MHG Cars, you will get free 5 years of comprehensive warranty from the date of registration that protects your ride against possible manufacturing/workmanship defects.

MHG Cars, backed by business partners MoneyMax Leasing and Hyper 21 Enterprises Pte Ltd, gives all our members free 3 years servicing. You can be sure that you get the best car services with our authorised vehicle workshops. In addition, all our new cars have undergone stringent pre-delivery checks to ensure that your car is delivered in pristine condition. Our selected workshops provide excellent customer service so be ensured that warranty and servicing will not be an issue at MHG Cars.

 

Reliability

Choosing Parallel Importers over Authorised Car Dealers can help you with significant cost savings and in getting the car of your choice. Though Parallel Importers have gained a rather bad reputation in Singapore due to a handful of errant companies, as business partners of MoneyMax Leasing and Hyper 21 Enterprises Pte Ltd, you can definitely be rest assured with MHG Cars. We believe in price transparency and ethical practices.

A summary of the Pros of Parallel Importers and Authorised Car Dealers

A summary of the Pros of Parallel Importers and Authorised Car Dealers

 

Now that you know the differences of a Parallel Importer and an Authorised Car Dealer, make sure to like and follow us on Facebook so that you will be informed when our next article is up. If you like this article, make sure to Share this Post on Facebook too!

Find out more on the process of buying a car in Singapore with MHG Cars.

Find out more on the process of buying a car in Singapore with MHG Cars.