Aussies are being ripped off - Just because we are Aussies

In our glorious land down-under where life is "great", it seems that most Aussie new car buyers are ripped off due to the so-called distance issues.

Fair enough, we pay a 10% GST, luxury car tax (LCT) of 33% for every dollar over a certain $60,XXX threshold. However, how can car companies justify charging us the ridiculous margins they charge?

Example: Brand new Audi S4 in the USA is around $49K USD. In Australia, it's over $100K AUD. Ok, it is further to ship to Australia, but not that much further!?!

Another example (but not as severe in price difference): Brand new Subaru WRX STI in the USA is around $36K USD. In Australia, it's around $59K. Shipping distance would be comparable.

There are 2 fronts to why we Aussies should be UPSET about new car prices:

  1. LCT
    Given that the LCT was supposed to protect the Aussie car industry from overseas imports, it's now (or will be) a piece of bulldust as there will be no mass Aussie car industry in the coming years (even Toyota's future hangs in the balance - if it doesn't win the production rights to the new Camry, it will most likely leave Australia too). So why is there a LCT in this day and age???

  2. Car Makers protecting their exorbitant profit margins in Australia…You only need to see the Audi example above…

No wonder the Aussie built cars can't compete overseas…What we expect to pay for an Aussie built car here, is actually a very expensive proposition to those buyers - who can buy much "better valued" cars…

Enough blabber…I am just p@ssed-off when I know I will be ripped off when I go shopping for a new car in the future…The OzB Community should make some noises about this, if they feel the same as I do…

closed Comments

  • +3

    I think the real question should be.

    Do we [ mankind ] still need to out of date government/economic model ? capitalism, democracy, dictator, communism, republic and others.
    This Tedtalk sum it up quite good

  • +1

    I gave up on the Australian Economy ages ago. Screw Local Businesses who screw Australian's over.
    Buy online and save.

    • We're almost about to get screwed online as well!

      • The proposed GST reforms.
        Stock up now?

  • +2

    It's expensive because of two main reasons.

    1. We are almost the richest people in the world. We earn loads and have the second highest average net wealth in the world -
      http://www.swissinfo.ch/eng/business/Average_Swiss_wealth_hi…

    2. We pay the price.

    If you want to protest, don't buy one. If the worst thing in your life is you think you are paying too much for an Audi, 99% of the worlds population will happily trade places with you.

    Why not go for a walk on some of the world best beaches, breath in our fresh clean air, enjoy our unique animals and our high quality of life. Stuff the car.

  • the prices you see in the USA do not include local taxes in each state they pay for their cars. so add 10-18% more. also when you consider how much our wages cost, the cost of maintaining and buying buildings to place these cars in and service centres etc, it all adds up. we are very much ripped off in the higher end of the market. however it costs a lot to run a car dealership. also overseas Head offices kill the market, so the only way to get around it in the local market, is that they negotiate more inclusion for the same price. so you will never really see lower prices however the inclusions are much more.

    either way ripped off but high dealing costs dont help.

  • +1

    Australia has the highest minimum wage in the world.

    It's a good thing, and most likely prevent poverty in Australia more than the US.

    Like another poster said, digital downloads which cost more in Australia make no sense (yes I know you probably need Australian servers, tech support, etc.), more than car manufacturers.

  • +2

    I think there is an element of truth in a lot of what has been said above. Another point I think is how big companies want to position themselves in the market. When people buy a prestige product they are buying more than just the product itself. For some they are buying prestige, recognition and exclusivity. Brands want/need to protect that. Here in Oz we have a different view of what is prestige than some other countries and there are people here that are prepared to pay for it.

    I always laugh when I see Tommy Hilfiger Polo Shirts selling for $120 etc as i know they are a status symbol here that somebody is prepared to pay for. I've bought several in outlet stores in the US for <$20 and even then I had a cab driver in Orlando once berate me incredulous that I paid $20 for a polo shirt, he pays $6 at Walmart. Obviously the local distributor of Hilfiger has managed to build and support prestige associated with his product, there is enough utility in that prestige that enough customers are prepared to pay his premium to have them. As long as he can keep it going he is on a good thing. As soon as that cab driver etc starts getting their hands on $20 polos at an outlet mall in Australia the folks that pay him $120 will move onto Lacoste or Ralph Lauren because they want to be getting around in stuff that regular peasants cant afford, they want (even if unconsciously) their attire and possessions to reflect their status and success. If the Hilfiger guy cant keep his local aura of prestige he will eventually be dragged back to competing on price with Target and Big W. There are plenty of luxury brands that actually destroy their unsold high end products rather than sell them at deep discounts. Any $$ they would recover for a fire sale would only degrade the prestige associated with owning their product, better to write some stuff off than compromise your future!

    Cars are the same. Audi always gets me laughing as many of their cars are essentially VW's with a different body shell and nicer seats, yet some sell at enormous premiums to their VW counterpart models. Clearly the VW group has positioned their VW models for the mass market price sensitive end of the market and their Audi product for the prestige end of town where exclusivity plays a big part in the equation. What is interesting at the moment is that some of the prestige guys are developing models that drop down and bump into the upper end of the mass market segment, models like the Mercedes A250, BMW 1 Series and Audi A3 etc. This area is the interesting end of town because these cars are in 'no-mans-land'. How do you retain the exclusivity whilst still justifying the premium.

    In the end, the simplest answer to the complex question is that these companies can charge their inflated local prices because there are enough people here prepared to pay them. If all the rich people held a town hall meeting, furious at the pricing for the new model 'E Class' Merc and all collectively decided to drive Toyotas instead, Mercedes would drop their prices overnight. But that aint ever going to happen. Pretty quickly the pickup zone at Scoth College would be littered with High end Lexus because…technically they are Toyotas and after all, a bit more prestigious!

    • +1

      Clearly the VW group has positioned their VW models for the mass market price sensitive end of the market…

      You're forgetting Skoda which is part of the same group and a rung below VW. They seem good value to some people who don't mind the historical stigma of that marque or the fact that it's Czech.

      This area is the interesting end of town because these cars are in 'no-mans-land'. How do you retain the exclusivity whilst still justifying the premium?

      Forget the A3, there's the A1 remember!
      These are entry-level enticements to attract new business from the luxo-virgins. They hope to retain them.
      That's the strategy, and it's a smart but a somewhat cynical and transparent one.

  • +2

    Although we earn more, however our money goes not as far as other countries though.

    You live in Melbourne or Sydney most of your wages go to your mortgage which house prices are going so far up that most people cannot even afford it anymore.

    Income cannot justify the expensive economy we have over here. When you compare economies, yes we earn more, however we spend more. If you compare it via ratios you will find out that we still get ripped off and don't get our bang for buck here.

    Our minimum wage is double that of USA for example, however prices here are often double or even triple more expensive than over there. How can you justify the triple the cost?

    No wonder businesses are shutting down, they shouldn't blame the internet, they should blame themselves. Most ripoff businesses in Australia use the profit model of "Large Profits, Sell Less", where as that is old school and new players to the market are slowly starting to use the "Smaller Profits, Sell More" model.

    We australian's have to pay a "Invisible Australian Tax", its not written anywhere but most businesses take advantage of it.

  • It would be interesting to see the breakdown of the cost of an Audi, WRX, etc in Australia compared to the USA.
    For example, how much does Audi Australia pay for the car, what is their margin, the dealer margin, etc.
    I suspect that it is Audi Australia making the big margins & they will say they need to make that much profit on each car to cover the overheads of running Audi in Australia.
    The same probably applies to most other industries - eg computer dealers (i.e. MSY, etc - not Harvey Norman!)typically make very small margins in software & the large difference in price to the US is presumably due to the large profits made by Microsoft Australia, Adobe, etc (they will say due to covering their overheads with much smaller volume of sales).
    Another hidden issue will be large exchange rate changes. When the US$ fell from $1 to $0.50 a few years ago theoretically many cars should have increased in price dramatically - of course the market would handle this & prices didn't change too much. Of course now the US$ is back to $0.85-0.90 prices haven't fallen either. If cars drop in price 40% this would probably have a really bad impact on the second hand car market too.

    • They can't show the price breakdowns — people would baulk to see the massive manufacturer margins.

  • That's why you go for 2nd hand. New car prices are such a ripoff. You rather put that in your mortgage mate!

    Someone else gets ripped off first before you buy it from their hands. Unfortunately that's the way how it works. No bargains can be made except doing this

    • +1

      Not always true. I buy my cars on novated leases through salary packaging. I normally get a 'fleet discount' which takes off $2K - $10K depending on the car/manufacturer. As it is being bought by the leasing company, either the leasing company or my employer wear the GST component of the purchase as input credits against their GST liability. I have to pay FBT and pay a lease on the cost of the car after all of this has occurred. Additionally I pay all of my running costs, including servicing out of 'pre-tax' money. At my marginal tax rate that equates to approx a 47% saving on paying for maintenance/petrol/rego/insurance etc out of post tax $$

      I have done the sums before on buying a nearly new car (1 - 3 years old) vs buying new and some of the time it actually makes more sense to buy the new car, particularly when you factor in the resale value of the car at the end of the lease (I normally own for 3 years). Sometimes the combination of the fleet discount and not having to pay the GST means that I'm getting a new car for less than the price of somebody else's former car. This isn't always true but I have found this on occasion in the past.

      • You don't pay GST for a second hand car too for whatever reason you don't pay GST for a brand new. So GST has nothing to do with the price set by the car dealers/ distributors in Australia.

        • If punter 'A' walks in off the street and haggles to buy a new car from a dealer with cash/loan he pays GST. Used cars sold by caryards/dealers include GST. 2nd hand cars sold by private people (on carsales etc) dont have GST but you would expect most of them to try and compare their sale prices with the yards that do. If somebody is making a comparison between a new car and a 2nd hand car I would expect them to compare the total final costs either incl or excl GST.

        • +1

          Private car sales are almost always cheaper. But there's less consumer protection too.
          Due diligence (REVs, state rego check etc).

        • ? The OP point here is US cars are cheaper than Aus cars. I said GST has nothing to do with the prices set by the distributors in each country. The same car you bought in Aus after deducting GST fleet discount etc if applies in the US should still be cheaper buyingb there. Same theory should apply to second hand cars unless the US tax system is significantly different from Aus like Singapore.

        • Private sells are the way to go, you jsut need to know your stuff and get someone to inspect if you want

          No GST, cash deal. No issues no fluffing around with salary sacrifice.

          Solution is to buy second hand on trading post carsales what not. If you want brand new, of course doesn't apply

    • Sorry to burst your bubble, but you are still getting ripped off second-hand because the second-hand price is a function of the original selling price, so you are still paying an element of gouging. Microsoft USA sells to Microsoft Australia at a high price, which makes sure the profit stays in the US. The same applies for Adobe, Apple, etc.

  • +1

    you can put it a variety of ways and try to explain it

    there is 1 reason that things are priced at what they are

    People pay for it

    if people stopped paying the prices then prices would come down

    its very simple basic scale of economics

    • +1

      Yeah and let's not forget manufacturers/producers/importers/providers will set the price at the highest possible level in which the market will bear, whether that be your local milk bar to a multinational…and these days a lot of them are smarter to manipulate other factors but the price to make the Aussie tax somewhat palatable.

      When I was in the trade importing shitboxes over from Japan, I've done the math and hypothetically a free car will still gobbled up couple grand in fees. GST on duty is my favourite or GST on freight (which is essentially a service rendered overseas by an overseas organisation but why the heck Customs see fit to put their hands out?)

      This Australian tax goes beyond our border too, IIRC some of those online storefront like Saks, Macy's etc charges a different price based on where you are. VPN + freight forwarder will often yield the best deals.

      • You are right on the pricing based on 'where you are' in the world. Last night I saw a bargain on a US version of OzB. I am gong to Vegas in Feb en-route to a ski holiday in Whistler. I saw a fleece jacket from Nordstrom listed on Slickdeals for US$49 incl free shipping. I went to buy one and have it shipped to my hotel in Vegas and I would pick it up at hotel reception when I arrive in Vegas (done this before), thereby saving myself the cost of postage to OZ.

        I went through Nordstrom's checkout procedure and told them I was shipping to the US, not to Oz. Put in the US Address, put in the Australian Payment address to match up with my 28 degrees card and the thing recalculates. Suddenly the jacket is now $75. Still free postage to a US address in Vegas but since the payment address is in Oz, the price goes up by 50%. In this case the thing isn't even leaving the US, the only difference is that the money to pa for it is coming from Australia….that's enough to trigger the Aussie Tax.

        I'm sure I could find a way around this if I really wanted to but I don't think I want to give any business to a company that would do something like this. I have other fleece jackets and there are other US companies that wouldn't do this if i am desperate.

  • I have the perfect solution. Make Woolies and Coles the only place you can buy new cars. They have managed to screw not only local producers but international companies down in price so much that some internationals have publicly commented that it is hard to make money in Australia.

    Imagine every other week a Merc would be on sale for 30% off in one store and BOGOF at the other.

    • That wouldn't work. Woolies/Coles would simply keep the margins to themselves. Yes they may have screwed the producers (both local and international) but the savings haven't trickled down. Grocery prices in Australia remain among the highest in the developed world (there was a report on one of the current affairs shows that found the same basket of common groceries cost more in Sydney than London or New York) and Woolies/Coles remain amongst the most profitable grocers.

      Same thing with our Big 4 banks — they keep moaning about "high operating costs" and cutting staff but remain amongst the most profitable banks in the world.

  • +1

    You don't need to compare directly with the USA only…we pay more than many countries so the cost of living and average wage argument breaks down.

  • Man… here we go again, yet another person comparing with the world's biggest buyer in the world. (second biggest in some cases). As many highlighted, one of the factor can be that you earn more here than US but I think there is also another critical factor. Volume & Population.

    Car makers might have higher margin% here than US but do you think they make more profit here than US?
    Why do you think local convenient store sells same soft drink much more than supermarket? and do you think the soft drink companies give their product to both of them at the same price? No way, right?

    And as an example, Wollies might sell a bottle of sparkling water for $3.50 each when the same product might sell for $2.20 at Costco. i.e. Manufacturers are willing to sacrifices margin for the volumes.

    Then there is our government, who made it impossible for people to grey import. Australia is 4th biggest AMG buyer in the world, but should government really worry about these and ultimately drop their revenue? Last time I checked, we are not really in surplus. If they give this away, they need to take away from something else.

    Don't get me wrong. I would love to buy 911 instead of E class, but seriously I think there are bigger thing to worry about than people getting "nice" cars.

  • +1

    Perfect graphic for this thread: example world prices for a 911 Carrera;
    http://bit.ly/1kPufGX

    • A little bit of me died after seeing this.

    • Wouldn't it be cheaper to import?

      • Wouldn't it be cheaper to import?

        if you were buying it as a track car…absolutely..
        If you want to drive it on the road a little thing called 'registration' might get in your way

  • cars cost more here end of story. even old holdens compare them to see how cheap old vauxhalls are in the uk.

    • +1

      "cars cost more here end of story" - well thanks for fixing that up for the rest of us.

      The legal parallel importation of late model cars that essentially have the same safety gear worldwide these days would sort out pricing very quickly. Since we will soon no longer have a car manufacturing industry this would be a smart policy move as it would lower inflation and people would probably spend the difference on companies that actually do pay tax in Australia, rather than those that funnel profits overseas.

      But no ruling political party will allow it.

      • That would be very tough on people that plan to sell their current car at a future date. I would imagine flooding the market with cheaper alternatives would rip the bottom out of the used car marketplace. Good luck on the residual for anybody with a Novated lease car coming out of lease 12 months after the Grey imports floodgates open!!!

        All that said, I hate artificial barriers setup to pander for vested interests. It would be a good thing that would financially rape me when i sold my current cars!

  • +1

    We are charged more here for most things. That is the reason things are purchased on Amazon. It is obvious that if you can pay for the import of one item and save money then the people who are importing in bulk are gouging us. I purchased a echo sounder from the USA for $220 that sells for over $600 here. Dive computers I paid a similar amount for one that sells for $900.People are always complaining about music costs. Someone I know watches basketball via a subscription on the internet by pretending his ip is in Spain or somewhere because it is cheaper than if he is Australia. That has nothing to do with freight or wages.

    Holdens agreed to wage rises in Australia in recent times knowing that it would be short lived and the tax payer would pick up the bill anyway.

    I would not be surprised if we pay more for kangaroo meat here in Australia than anywhere else.

    Our prices work on the BOHICA method. Bend over here it comes again.

    Our wages are inflated but our prices are too. You cannot fix wages and not prices.

  • +2

    Talking of getting ripped off…

    Took kids to the kids open day before the start of Australian open. Was a hot day, and kids wanted to have frozen coke. When I saw the price of $6.80 for a regular size glass, needless to say I was shocked.

  • When it comes to physical products, I'm alright with the Australia Tax as long as it's reasonable (ie. it factors in GST, shipping & import costs and any other taxes…plus a little bit of a markup) - of course I'd rather it didn't exist, but that's a fantasy that is unlikely to happen.

    However, I dislike it when all sorts of bullshit excuses are used for having the "Australia Tax" being too excessive (like with Adobe products) or on digital products where the usual costs don't apply.

    • For me the issue with digital products is not the price (they can charge what they like) but the DRM measures they use to force you into not buying from overseas.

      Physical goods that are overpriced here you can import yourself.

      • Speaking of physical software, get this.

        I've bought several 8-10 year old xbox (shaddup) games for $3.00-$6.00 posted from the UK.
        One of them — Heroes Of The Pacific — I snagged for $4.xx, an Aussie currently has it on eBay for $43.10!

        There's so many Aussie sellers trying it on. And many are LYING, because apparently if you put RARE in the title or description you can pretty much name your price.

        They just suck.

  • -1

    I totally agree to this post. Let alone cars - it's all over! Petrol, House, Business, iPhones!! Are we that rich? If we were, we wouldn't be looking for coupons or GumTree!

    • +2

      Petrol

      Relatively cheap compared to much of the rest of the developed world.. compare it to EU/UK petrol prices for instance

      iPhones

      by the time you add sales tax to the US price there really is little difference in the cost

      Im all for a rant, but occasionally facts are helpful when on the soap box

  • Wow…I don't check this thread for few days and see so many comments…I luv you all (being the OzB Community)…

    Right or wrong, I cannot afford a high end car in my current status and will most likely never be able to afford another high end car…Bu I must admit, I am a petrol head and luv my turbo cars and higher-specced cars…I did once buy a brand new Porsche Cayman S Sport in another country…Those were the days…And I did once own a 2nd hand Audi S4 overseas that I bought for like $20k AUD when similar models were still going for $60k AUD in Australia.

    I have been voting with my wallet since returning home and only own cars on a novated lease…

  • I agree with your rant. Australians are getting shafted on the price of everything imported, and its partly price gouging, partly because the market here is smaller and less geographically concentrated than in the US, and partly because the wages are higher here. One additional difference not mentioned in other comments is that the US dollar is the world currency (in buying oil) and is probably over-rated by at least 30%. American consumers get a 30% discount on everything because of that. The AU Dollar is said to be too strong now, but it isn't in reality when compared to the USD. In the coming year or 2 the USD will lose its world currency status and Americans will be paying a lot more for everything.
    To the person who said prices here will fall with the lower AU Dollar: that is completely wrong. A stronger dollar lowers prices for consumers on all imported goods and on locally produced goods, too. A stronger AUD causes export prices to be higher, and makes it harder for Australian business to sell products overseas, which will eventually lower employment in Australia, may cause a surplus in local produced goods here, and both of those also cause lower prices for consumers here.
    The medical/health care provided here (compared to USA) also causes prices to be higher because every treatment has to be paid for somehow; government saying that everyone deserves to be treated doesn't magically make it free. In the US the same thing is true, but instead of government saying it, the medical establishment eventually treats almost everyone and passes the cost on in higher prices to the paying patients. I'm not saying the treatment is timely or superb, just that the market puts the cost into everything eventually. TANSTAAFL.
    All that said, Australian consumers are still getting cheated on prices of goods by manufacturers and vendors compared to Americans.

  • Moral of the story: no matter where you live or what you do, governments and businesses stick their grubby hands deep into your pockets; and just when you thought you'd given everything you got, they shake you by the ankle for every… last… dollar you got. Because money doesn't belong to you, never did and never will. Taxes, Tariffs, Levies, Rates, Fees, Duties, Compliance Costs, not to mention Profit Margins - all comes from somewhere… Welcome to the Hamster Wheel of Life, son. Welcome to the Modern Age of Serfdom.

    • Fark.
      Should we slit our wrists now or wait for the neural net aka singularity?

      • On the contrary, an uprising!

        • +1

          Sure, why not?
          It's working so well for Syria, Egypt, Thailand, Iraq, Tibet, Ukraine and what about Burma?
          Change name to Myanmar and everything's rosey!
          /sarcasm

  • IMO in Australia Minimum Wage and Welfare are too high, and that drives everything up… not because it can - but because it has too. Every service you use, every product you buy has some element of labour and tax attached to it.

    If we lowered wages, and reduced both welfare and taxes - everything else would balance back out and local companies would be able to complete again.

    • Should start from lowering those CEOs millions of dollars bonuses.

      • Yeah I should have said - lower taxes for lower incomes

    • +1

      So…we retain the ever-growing user-pay system, but reduce incomes of the poorerst.
      Sounds like the US.

      Prices for things like cars will remain high because whether you're marketing to 15 million potential customers or 10 million, we're still a tiny market relative to the US.

      So we'd have their poverty plus high prices. Way to go!

      • What is user pays in a system where we hand out so much welfare?

        • Ohh I dunno. What public assets are they privatising this week?

          Or this. The coalition hoodwinks xenophobic bogans. Next thing you know, private health insurance companies announce a 6% rise in premiums.
          Perhaps they need to because the system is working too well, aka A Victim Of Its Own Success.

          Remember the Nixon tapes? There's a juicy one that's relevant here. It concerns the scam that is private health insurance.
          Great listening, I give it two thumbs up!

        • Oh, I just remembered a couple more recent ones.

          Partly it's thanks to us, because we're bargain-hunters and have little hesitation in buying from overseas. Okay, guilty as charged. There's the proposed increase in GST (the ultimate consumption tax) for purchases well under the current $1000 cap.

          Related is the Australia Post situation. They've been posting record profits on the back of parcel deliveries (letter mail has been well down). It's now a juicy candidate for full privatisation. The charter will go from one of service first with modest profits to cover expansion, equipment and advertising to one of a pure profit motive.
          So if you think postage is dear for Aussies now, you ain't seen nothing yet.

          The proposed Centrelink/Medicare functions to be moved to Australia Post shops just muddies the waters. It's a ploy designed to save a lot of money, but also to degrade services to the point where further suggestions for reform will be viewed positively.
          Problem-solution scam.

          Kevin Andrews has heard your welfare concernjust the other day indicating reforms (cuts) ahead for Newstart and disability pension recipients.

          When all these things (and others I've forgotten or the Govt hasn't revealed yet) are combined, you're looking at what amounts to austerity measures. It's what the Coalition wanted all along. The problem is, the rest of the world is coming out of that phase. As usual, our Govt is behind the times with policy.

  • +1

    Now that Aussie car manufacturing has imploded it's time to allow second hand Jap imports from Japan, just like N.Z!

    • Excellent suggestion, as long as there are stringent radiation tests done before shipment.
      The government will argue that will prevent car manufacturing from having a chance to come back, as if there was any chance whatsoever. The only way car manufacturing has a chance here is if the high labor cost is eliminated (in both workers and management.) In terms of the economy (ignoring effects of pollution) Australia would prosper if the iron resources here were used in local manufacturing instead of sold and shipped overseas as ore. Perhaps manufacturing using printer technology will make Australia competitive. If so, then a large share of the profits should be used to benefit all current and future Australians.

      • Dealers make (profanity) all profit because of labor party policy's . The anti - business

  • Just learn about cars and pick up a used one mate, 6k will give you a good one and there's no break-in period to worry about, nor the warranty that keeps you coming back to dealer stealer's service station. screw the automotive industry here.

  • "Example: Brand new Audi S4 in the USA is around $49K USD. In Australia, it's over $100K AUD. Ok, it is further to ship to Australia, but not that much further!?!

    Another example (but not as severe in price difference): Brand new Subaru WRX STI in the USA is around $36K USD. In Australia, it's around $59K. Shipping distance would be comparable."

    That has absolutely nothing to do with it. Its Dumb Australians happy to be ripped off and setting the price for the rest of us that's the problem.

    I bought a pair of Cummins diesels several years back from a mob in Brisbane, best price around at the time was around $40k for the pair.
    6 months ago I bought another pair of them, this time I ordered from the US and organised my own freight and had them delivered to my door for a bit more than half the money.

    • I don't think you can simply import a brand new Audi or Subaru car to Aus and that is why OP is pissed about getting ripped off without a choice but buy from the local dealers. Even importing used Japanese cars not as easy if the local dealers sell the exactly same models. The market is also somehow protected by our government to maintain the higher prices for most of the cars than the US.

      • It's taxes and reagulations, unions why cars are expensive

  • My argument to that would be how come we can get Jeeps and other models here for around what they cost in the US but if I want some other US made vehicle like a Challenger or Charger its costs 3x + ?

    Some would argue that it's because its a performance vehicle.

    This from the Customs department
    "On 18 May 2004, the Minister for Trade signed the Australia-United States Free Trade Agreement (AUSFTA) with the United States (US). Under AUSFTA, goods that are US originating goods according to the AUSFTA Rules of Origin may enter Australia at preferential rates of duty. AUSFTA also allows for Australian goods to receive reciprocal duty entry into the US." http://www.customs.gov.au/site/page6016.asp

    In keeping with the above agreement I'm pretty sure the Yanks got our Monaro which is a performance vehicle for a cheaper price than what we pay here and now in Aus, how much is a Monaro selling for?
    In the US they are $10k and there are plenty of them.
    http://www.carsforsale.com/used_cars_for_sale/2005_pontiac_g…

    Yet for Australians, it seems the free trade agreement does not apply.

    • Free trade aggrements applie to governments not businesses. GM can still do what they like. Having said that we typically get poor deals out of free trade agreements.

    • I believe the Monaro was sold under the Pontiac badge, which was retired.

      In such cases, the cars are viewed as "orphans" and values take a hit.

  • There you go…Thank god I am not the only one think about these stupid tariffs; now that Toyota will also end manufacturing in Aust…

    http://au.finance.yahoo.com/news/call-scrap-tariffs-imported…

    • But they serve another purpose, as a revenue source. If you can afford a new car you can afford to support your country.

  • A couple of observations.
    When the Pontiac G8 (Commodore) was launched at a US motor show a few years ago, an Australian journalist present asked the marketing rep from General Motors why the car cost less in the USA than it did in Adelaide, where it was made. The GM man fobbed the question off and attempted to change the subject, but a couple of other journos pressed the point and, eventually, he was forced to answer. His reply was, and I am paraphrasing here, that Americans have different expectations to Australians.
    In other words, 'we know we can get more for the cars in Australia, so we do'.
    I have been wondering since the news about Toyota this week whether any Aussie car workers are considering moving to somewhere like Thailand. After all, houses cost a fortune here, so if you own one (or have some equity in one) it might pay to sell up and buy in Thailand. Or, rent your house, neg gear it and make the move.
    Sure, the wages are nothing like they are here, but neither is the cost of living. Thailand has less than 1% unemployment, the car business is booming and lots of international makes have factories there and their capacity is expanding all the time.
    If you have 25 years experience in the car business, the kids are grown and you are worried about where your next job might be at 45-50, it could be worth considering…

  • The s4 is 55k in Japan / £44000 in uk . Which is $76000 AuD . Luxury tax on to that , regulations .its about $110k . Learn Economics

  • S4 is £44000 in uk . In Aud that's $76000 . Then luxury tax is added to that " wAges , mechanics check before selling , maketing costs " $8000 to ship it from Germany which is 16000 km away " custom tax " stamp duty it adds up

Login or Join to leave a comment