If you can’t sell the Bugattis, put them on display

Editorial table

Last week, the Bureau of Customs (BOC) released a notice of public auction of two high-profile hypercars that were seized earlier this year. The cars in question are two Bugatti Chiron hypercars that managed to evade customs and were on Philippine roads for a while. It is quite puzzling that these two vehicles were able to be registered, given license plates and even given fenced village stickers.
For the uninitiated, the Bugatti Chiron is one of the most expensive high-performance vehicles in the world. The vehicle is one of the few that can deliver over 1000 hp and a top speed of over 420 km/h in the production version. These performance figures are quite high even for cars of this caliber.

Of course, they are also quite limited and very expensive. Additionally, production of this vehicle has already been discontinued, further limiting its availability. Each car is worth at least ₱165 million when brand new. Of course, if imported legally into the country, with our web of vehicle taxes, excise taxes, customs duties and shipping charges, the price of the cars could easily double to as much as ₱330 million if they are brand new.

Unsurprisingly, the BOC has set the reserve price for these vehicles at just over £300 million. However, please note that these vehicles are already in use. One is a 2017 model and another is a 2019 model. Therefore, the corresponding loss in value of the vehicle should have been taken into account. Still, it shouldn’t be too much, so the price is still above the £250 million mark.
A few days later, the BOC declared the auction failed because no bids were submitted for the two vehicles. It shouldn’t be a surprise for the agency as these supercar prices are already quite high.

Not the price, but the seller

However, the price itself is not the problem. There are many millionaires who are willing to spend ₱100 million on the latest Porsche, Lamborghini or Ferrari models. It’s more about who sells them. Any buyer who has ₱300 million lying around to buy one is unlikely to want to do business with the government for fear that their name, recent purchases and source of income could come under scrutiny.

If they really want to sell the vehicles for that large sum, it might be more successful to hire an outside auctioneer like Salcedo Auctions. Just don’t ask who the buyer is, just give the auctioneer his share and just use the money more wisely. After all, taxes are already included in this new price. Then everything should be fine as long as the price is paid.

Use them as an example

Of course, there is also the possibility that such cars, which have repeatedly made headlines in newspapers and news programs, are already viewed as spoiled goods by any potential buyer. Who would want to be seen driving a vehicle that was once considered smuggled?

Instead of destroying the cars simply because of the lack of media coverage and the good government press it’s worth, why not take the cars on a nationwide tour?

There is no better proof of the greed and audacity of the smugglers than these vehicles. So why not take these cars on a nationwide tour of the country’s cities? Display them in public spaces, along with plaques that break down how many schools, ambulances or supplies that properly paid taxes from these cars might have purchased.

Illustrate why high tariffs are imposed on cars like these in the first place – to generate revenue for the country from the wealthy who want to spend money on flashy private vehicles, rather than from charities helping their fellow countrymen.

Stress that these taxes and tariffs are also imposed to protect local and regional vehicle manufacturers that create jobs for Filipinos and Asians. High taxes paid on such cars allow the government to reduce taxes on cheaper and locally built vehicles such as the Toyota Vios, the Innova and soon the Tamaraw.

With such a nationwide tour, we can educate our compatriots about the importance of properly documenting imported goods, taxes and customs duties. It’s not about giving the government more money, it’s about protecting our own industry and the companies that pay the right taxes. Perhaps our compatriots will then be better informed about why these tariffs are being introduced in the first place.

(Iñigo S. Roces is the automobile editor of the Manila Bulletin)