Parked Up

"As a car owner, I know the cost of my vehicle is significant."

A press story caught my eye. According to the report, a parking firm is seeking to remove and recover outstanding parking fees for vehicles left on its premises. The company issued a final notice demanding that the owners of 22 cars pay the fees and other charges. 

What struck me is that one of the cars owes HK$1.25 million in parking fees. The offending vehicle is a Volkswagen, which has been parked since 2011 and is now worthless. 

The owners have abandoned these vehicles — that is clear. Also, I note that several vehicles have been left in the airport park-and-ride facilities. This suggests that the cars were dropped off by their owners as they left Hong Kong; therefore, it’s unlikely that the parking management company will be able to pursue claims to recover their money. 

Some speculation is that the owners passed away, perhaps leaving the cars behind with relatives unaware of the situation. Moreover, these cars could have been abandoned to avoid the cost of disposing of a vehicle.

Either way, it’s a testament to the low value of secondhand cars in Hong Kong. A quick perusal of secondhand car sales sites will reveal that even serviceable high-end vehicles are selling at a considerable reduction on their ticket price as new.

Owning a car in Hong Kong is costly due to a lack of parking spaces, high insurance and maintenance costs, and other related expenses. Fuel is among the most expensive anywhere. While, finding a parking space is almost a competitive sport in this city.

Of course, our superb public transport system and compact city incentivise citizens to use public transport rather than own a private vehicle.

Cultural factors also influence second-hand car values. Except for ‘classic cars,’ the Chinese perceive new cars as better than someone else’s used junk.

As a car owner, I know the cost of my vehicle is significant to my pocket and the environment. I increasingly use public transport, taxis, and Uber as I wean myself off the car. 

One question that comes to mind is why the parking company took so long to act. Also, what does it say about your society that perfectly functional Porches, BMWs and Mercs are abandoned by their owners? 

One solution to this issue, along with the rampant illegal parking of cars that blight Hong Kong’s streets, could be to adopt Japan’s proof-of-parking rule (shako shomeisho) system. Under this system, car owners must provide the authorities with proof that they have a parking space.

Further, overnight on-street parking is banned and enforced. The impact of this scheme is evident in crowded Japanese cities as streets remain free of cars, blocking movement on roads and pavements. 

I suspect there is no appetite for such a law. Instead, the emergence of autonomous vehicles allied to ride-hailing apps will further drive down the appetite for car ownership. The ultra-rich will continue to own cars, probably with drivers to signal their status, while others will gradually see the economic case of hiring as needed. 

Thus, on car ownership, technology and economics will drive changes rather than the blunt instruments of the law. Notably, cities with short travel distances, such as Hong Kong and Singapore, provide the best sites for such innovation. One imagines that once autonomous vehicles arrive at scale, that’s the future.