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SINGAPORE, (AFP) Singapore may be going through a severe recession, but tell that to high-end car dealers still doing a roaring trade as wealthy enthusiasts spend fortunes on exotic wheels.

When collectors snapped up five gleaming new Lamborghini Murcielagos - each worth 1.1 million Singapore dollars (600,000 US) - during a year-end auto fair in the affluent city-state, the dealers hardly raised an eyebrow.

"We are talking about buyers with a net worth of 400 million dollars. Even if that is halved in an economic crisis like this, they will still have 200 million dollars," said sales manager K.C. Chong of Lamborghini dealer EuroSports Auto.

Even ordinary cars are extremely expensive in tiny Singapore, where a quota system and steep taxes designed to limit car ownership can make an ordinary Japanese-made family sedan as expensive as a luxury model bought in the United States or Europe.

Singapore's economy is facing a 3.0 percent contraction this year - from 9.9 percent growth in 2000 and its worst slowdown since independence - and next year's prospects remain uncertain amid mounting layoffs and salary cuts.

EuroSports managing director Melvin Goh said Singapore has "a fair number of very keen car enthusiasts" and, thanks to them, he has cleared all of his stock for 2002,

including four million-dollar Lamborghini Diablos.

More bookings for the Italian-made, limited-edition supercars are expected next year and Goh hopes to sell 20 more Murcielagos in the next four years.

Dealers described their typical clients as businessmen between their thirties and eighties, who are very passionate about their cars even if they seldom take the beauties out for a spin.

"The cars are something that they want but perhaps because of their lifestyles, they clock up no more than 3,000 kilometres (1,865 miles) of mileage a year," said Goh. Another dealer said that with collectors, there is no end to the buying and upgrading habit. "They just swap their old cars for new ones," he said.

And, according to an executive of Porsche dealer Stuttgart Auto, the economic slowdown is unlikely to rein in their spending because such clients are "recession-proof" and continue to splurge on big boys' toys such as jewelry, watches and cars. Annual sales for the German-made Porsche, which costs between 311,000 to 939,000 dollars, remain stable at 45-50 units, said Stuttgart's sales manager Andrew Ang.

"Despite what everyone is saying about the downturn, our cars are still moving," he said, adding that Stuttgart has also cleared its 2001 stock.

Barry Kan, general manager at Malayan Motors which distributes British brands Jaguar, Bentley and Rolls Royce in Singapore, said some businessmen had already budgeted to buy the cars and were not compelled to give them up now. "Even though some people are losing money in this downturn, there are those who are making money.

Some blue chip companies are doing very well," he said.

"Besides, the businessmen have other investments too and have their money spread out. So they are unlikely to be cornered unless we have a major economic slowdown worldwide."

Kan added that he sold six million-dollar Bentleys and Rolls Royces this year and "one car every two months isn't that bad at all." Clients have also been packing his Jaguar showroom since Malayan Motors launched the sleek new X-Type series last month.

Its sales manager Anthony Leong said the number of visitors leapt from 100 on an average month to 800 in November.

And just as sales for the X-type Jaguar - worth about 190,000 dollars - "exceeded our expectations in view of the current economic climate," the older S-Type series, costing an average of 213,000 dollars, is also seeing a 50 percent increase in buyers.

"They (businessmen) want to buy and still have the means to buy," Leong said, adding that buyers are attracted by lower prices of the car quota certificates which one must bid for before being able to make a purchase.

These certificates of entitlement (COEs) now hover around 30,000 dollars for cars with engine capacities of more than 1.6 liters.

"Who says it's a bad time to buy cars? The COE prices are lower and so car prices are lower. It actually looks like a very attractive proposition," Leong said.

But one dealer said he had hit hard times. "Even in a downturn like this, the rich can still afford to pay. But think of the etiquette of it," said the British luxury car dealer who declined to be named.

"With companies reducing overheads and cutting costs, they (businessmen) cannot possibly indulge in their cars and flash them around. So they don't buy the cars," he said, lamenting there was "no action" at his shop.

Mercedes-Benz dealer Cycle and Carriage, which sells an average of 300 units of the popular German brand a month, said it had slashed prices by 20,000 dollars and was drawing new clients after sales tumbled 30 percent following the September 11 terrorist attacks in the United States.

The high-end S-Series now sells for 290,000 dollars and the E-Series for 190,000.

"There are, of course, those who are now downgrading to a Japanese car, but there are also those who are upgrading because of the cheaper prices," said a company spokesman.

"Because there is more value-for-money, the cash-rich who have been conservative and do not own a car yet will take this opportunity to buy," he said.

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