Authorized Dealers have attractive showrooms, numerous staff, minimum paid up capital, and must follow numerous automobile manufacturer guidelines before getting licensed. Parallel Importers on the other hand bypass this by simply buying the cars and reselling them at a profit.
But there are other differences between Parallel Importers and Authorized Dealers, such as:
Parallel Importers are Cheaper
Authorized Dealers have many overhead costs to consider, such as maintaining stunning showrooms and having large marketing budgets. These overheads end up making their way to car prices. But because Parallel Importers don’t have large dealership expenses, this can equate to savings of up to $10,000 on the price of the same car offered by Authorized Dealers.
Authorized Dealers typically offer at least a 3-year warranty with free servicing for the first 10,000 miles. But the warranties offered by Parallel Importers can vary from dealership to dealership. You’ll probably receive better after-sales support if you purchase an expensive car from a Parallel Importer – but there’s no promise you’ll receive the same level of service as an Authorized Dealer.
Acquisition of Replacement Parts
Authorized Dealers are usually more efficient because they only carry certain models from a single brand and have direct access to manufacturer parts. Parallel Importers on the other hand can carry numerous models from different brands, making parts acquisition a nightmare. Plus, there’s no way to tell if official or even new parts are being used for repair/replacement.
The ability of Authorized Dealers to get re-stocked with particular models is usually faster and more predictable. That’s because they can get re-stocked from regional factories that are closer to Singapore. Parallel Importers can take up to several weeks to get a particular car re-stocked because they can only purchase from a manufacturer’s original factory, not regional factories.
Quality of Service
Authorized Dealers usually offer a better level of service because they have brand standards to maintain as a licensed dealer. Parallel Importers don’t have such standards, so the level of service can vary from non-existent, to excellent. The bottom line is you’re taking a gamble on what kind of service you’ll receive when it comes to getting pre- and post-sales support from a Parallel Importer.