PSST... want a year-old Rolls-Royce at $500,000 less than a new one?

Ship chartering tycoon Yeo Chong Lin, 74, did. He picked up a rare silver-and-blue Rolls-Royce Phantom which had clocked only 1,600km after a year - for $1 million. A new one sells for nearly $1.5 million here.

"It's practically new," he says, beaming at the immaculate limo at parallel importer Cheng Yong Credit's showroom in West Coast Way last week.

He had been searching "everywhere" for such a car. Finally, one was found in Japan. And he got Cheng Yong to help import it.

"This is the seventh Rolls-Royce I've owned. Five were second-hand ones," he says, adding that he tends to "lose a lot of money" when he buys new cars.

The used Rolls-Royce from Japan is among the first batches of imported used cars arriving here after import rules were relaxed last September.

Before that, imported used cars were not eligible for scrap rebate, also known as Parf or preferential additional registration fee.

For something like Mr Yeo's Rolls-Royce, the rebate is worth as much as $247,000 if he scraps or re-exports his car before it turns 10.

Other rules governing the import of used cars remain, such as how they must not be over three years old when they arrive and how buyers must pay a tax surcharge of $10,000. The cars will also need a COE.

As such, car importers reckon only high-end models will be in demand.

Cheng Yong Credit managing director Neo Nam Heng said he has orders for a BMW 645 Cabriolet, Porsche Boxster, Bentley and Mercedes SLK roadster.

"It's a new area for the trade, but I think it will grow quite fast," he says. "The consumer has more choices now."

Mr Kevin Kwee, executive director of multi- brand agent Group Exklusiv, says his company is "exploring this opportunity" too.

Mr Raymond Tang, managing director of parallel importer Yong Lee Seng Motor, reveals it is now sourcing for cars.

According to the Land Transport Authority, nine imported used cars - among them a Chrysler 300C stretch limousine and a Honda NSX - have been registered since the change of rules four months ago.

The emerging trend is raising the ire of importers of new cars though. Some allege such cars have unrealistically low open-market values (declared import prices on which car taxes are applied).

Mr Yeo's Rolls-Royce has an OMV of $300,000, compared with $450,000 to $500,000 for a new one.