Benz Amorn expects brighter sale results

The new figure is 300 units, a 20-per-cent increase from a previous goal of 250.

"With the economic crisis and political instability, we expected a drop in sales, but then we reached our original 250-unit target in the first 10 months alone," said managing director Wannapa Tangbanyong.

While 300 units would represent flat growth from last year, it would also fly in the face of conventional wisdom that said sales of used luxury cars would plunge more than 50 per cent as premium customers delayed buying until the economy improved.

The Land Transport Department said 394,839 vehicles registered a transfer in ownership in the 12 months ending September 30, up only 11,017 units from the previous 12-month period. As for next year, Benz Amorn Ratchada expects 10-per-cent growth to 330 units. The company will spend Bt10 million to renovate its showroom and customer-service area.

Benz Amorn Ratchada officials credited the company's consistent sales with the one-year warranty and "no labour fee" policy extended to all customers. There is no labour charge at all for any maintenance work performed during the lifetime of any vehicle sold by the company.

"We try to focus on buying cars that are only one or two years old, so most of them are still under the three-year/100,000-kilometre warranty of the manufacturer. About 10 per cent of all new Mercedes Benz customers end up selling their cars within the first two years. This year, the number of people wanting to sell their cars to us has increased from 30 to 50 units, a month, a clear indication of the economic crisis," said Wannapa.

To boost sales in the final two months of the year, special promotions have been launched, including an Oktoberfest campaign offering low down payments and the lowest interest rate of 3.65 per cent per annum. A combined Bt150 million worth of vehicles are expected to be sold during the campaign.

Benz Amorn's annual revenue runs Bt600 million, all of it from car sales: 50 per cent from E-Class sales, 40 per cent C-Class and 10 per cent S-Class.

The company competes directly with ID1, the official used-car division at Mercedes-Benz (Thailand).

Wannapa said the main reasons her company maintained a competitive edge over ID1 were the "no labour fee" policy and the trust the company had built up among its customers.