Mazda to offer buyers early duty cut savings

Article
Gallery

By Matt Brogan | October 12th, 2009

Mazda will pass duty cut savings on to customers now, three months ahead of the Federal Government planned cuts to the tax.

The duty on passenger cars, which is currently 10 per cent, will be halved to five per cent right away on all new Mazda purchases which, in some instances, could save buyers up to $2,000.

The saving equates to roughly three per cent of the manufacturer’s list price.

On Mazda 3 for example, the savings are approximately $930. If you’re in the market for an RX-8 the savings are closer to $2,000.

“Introducing the duty cut now delivers a significant saving for new car buyers,” said Mazda Australia managing director, Doug Dickson.

Mazda is hoping the combination of this cut in duty coupled to the Federal Government’s 50 per cent investment allowance will encourage buyers back to the new vehicle market.

By the end of September Mazda had sold 57,695 cars giving them an 8.5 per cent market share and making them Australia’s fourth best selling brand.

Four-wheel drive and light commercial vehicles are not included as they are already charged a five per cent duty.

Jeff

There should be no duty at all, but 5% is still better than 10%.

KingCobra

I strongly disagree, the savings are more to do with the incredibly strong Australian dollar which means Mazda can cut prices. This is a sneaky move to claim it is due to the tariff reduction, this is just spin so that importers can argue for further tariff reduction. Australia has one of the most open vehicle markets on the planet which is staggering considering the small size of our market and the fact we still make cars here. Most other countries have very high protections for local manufacturers.

Frenchie

Spot on KingCobra!
G

Yep, spot on.

Shak

You are right down to the minutest detail.

Jeff

The only reason we manufacture cars here is because of tax payers money, if the Government wasn`t propping them up they wouldn`t be able to exist.But with the Productivity Commission recommending the funds be turned off, I think they will struggle to exist.

Beemer

It is a shame that Mazda dosnt open a plant here considering they are the fourth biggest brand. they take so much from Australia but like many global companies they dont give anything back. Its a shame that Australia has to compete with countries with low wages and horrible conditions or with countries with high tariffs or import restrictions.

Frenchie

What comes around goes around. Look at Japan, once cheap to buy cars, now the second most expensive place to build a car.
G

Hey Beemer,

Mazda is only big in Australia because one given day they started saying their cars are good, and kept saying until people started believing it.
Just so you know Mazda is close to nothing pretty much everywhere else. In Japan they have less than 5% of the market, for example. In Europe less than 2%, in US just 2%. There is something in the Australian mindset that just makes Mazda work here. Maybe because the press always put a positive spin in everything they do. If you look closely to any Mazda car you will notice that quality is nothing but average. Design used to be good, but now that they have the smiling face they just lost it completely.

Carfanatic

Too True, Mazda only holds 1.8% of the world market. Last year they finished behind Kia and BMW and weren’t far off being overtaken by Mitsubishi.
Gary

Well, toyota is no.1 in Aus and in the world, but how do you compare corolla and mazda3? Would you say corolla is a better car?

Carfanatic

I’d say Corolla is a model that has a long history and built a strong following over many decades. Mazda has seen many changes and didn’t market anywhere as heavily as Toyota.

o

Sorry? MAybe its the fact that mazdas are actaully good
Carfanatic

Then why aren’t they the number one selling car in Australia? Oh because of the reasons I gave, Corolla has a longer history and bigger marketing budget. Therefore it has had longer to build a cult like following.

Falcodore

G, there is a reason the press give Mazda positive reviews. It’s because they make great cars. Their cars have excellent quality and reliability.

I own an 11.5 year old Mazda and its holding up better than my sister’s 2004 BA FPV GTP and another sister’s 2007 VE Commodore.

My car is driven around country NSW and on numerous dirt roads and it has a couple of sqeaks and rattles and the only things ive had to do is replace a headlight globe 2 months ago and a tail light last year and a new battery 4 years ago. Otherwise the car has been faultless.

By contrast the FPV had tyre wear problems and the climate control doesnt work properly and a few other minor problems. The VE Has had a flat battery 4 times and the centre screen has a glitch and has actually gone blank a couple of times.

http://caradvice.com.au Les

I ordered a new Mazda SP25 on Friday 9th October and paid a $1000 deposit. Should I be expecting the tariff cut to apply to my car? I take delivery later this month.

D

Nope, you’d already signed on an agreed price.
But you should still contact your dealer though, to see if you can get the discount- you’ve got nothing to lose!

mikebike77

@ Les

If you haven’t collected your car yet. You are entilted to the savings, regardless of whether or not the deal was done last month or any previous month.

In fact Even if you have taken delivery earlier this month, i.e. Oct 1st to Oct 11 the dealer should be contacting you to organise a refund. It is up to the individual dealer as an ethical issue. (can be debated either way )As they will be subsidised from Mazda.

How do i know? Because i have spent the last two days going through this and making phonecalls and sorting a ton of paperwork to organise said refunds to clients.

Vad

Ordered a car last Saturday at 5 pm. Has to be delivered in 3 weeks.
Talked to Mazda today – they said it is up to dealer.
The dealer – Mazda Brighton – advised they are not providing re-fund or anything. As you said: “the individual dealer as an ethical issue”
Freddy

I went to see dealer yesterday.
They still ask 45k and 52k and he was not even mention 5% tax cut.
Dealer was not offer me any price unless i wanted to buy.
I might try different dealer this weekend.

Lansing

Wow only 5% tariff, that is disgraceful, how the heck are we supposed to compete in this region against all the low cost countries. Oh well im sure Mazda will be happy the day the last Aussie manufacturer shuts up shop.

Matty B

Why should we the consumer pay because our Australia built cars aren’t up to scratch. 90% of the people on this site sit here and bag out the American cars for being crappy cars am I right? But why aren’t we all buying Australian built cars? Because they’re not up to par with the Market, simple.

Survival of the fittest, I feel bad for the workers at these plants, but they’ve got the manufacturers to blame, not the government or anyone else.

The only real winner here is the Government.

Tomas79

Too right!!
Jenson

Well in a way we are buying Australian, roughly 10,000 Commodores and Falcons and their derivatives (utes, LWB, Territory, HSVs, etc) are bought a month. These two platforms are by far the biggest selling on the market. Australian cars are exceptional and thats before taking into account the value that they have. 5 star safety, rear wheel drive, 5 adult comfort, powerful and economical engines, outstanding durabilty and reliability all for cars which dont cost much more than a South African-made, front wheel drive, 4 cylinder Golf.
The problem is for manufacturering its very hard to compete with countries which have lax environmental standards, low wages and high tariffs, yet these same countries have carte blanch access to our market. I think a lot of benefit (especially due to the skills and employment which can be fostered) can come from having a tariff system in place which encourages car production in Australia.
Beemer

Huh? This is about competing with countries which are a lot cheaper to build in. I think Aussie cars are amazing for the money, I rented a Falcon and it was a vastly superior car to a Maxima or Accord. the problem is that it costs a lot to build in Australia – the Maxima and Accord are both built in Thailand by the way.

Tomas79

Why the hell should I be forced to pay 5% penalty rate for choosing to purchase something foreign?

Beemer

Why should I pay 45% tax rate to fund schools and hospitals I dont even go to…..

Tomas79

Thats a tax, that everyone in australia that earns an income has to pay that…

While with Car tarrifs why should i be penalised for choosing to buy foreign, over the sub standard localy manfuctured products, owned by foreign companies and overseas sourced componets?!!

Lansing

Pffft 5% is nothing, try exporting a Falcon to Thailand – 80% tariff, or to Malaysia 130% tariff.
Safety Frist

Because those vehicles that you choose to buy are getting massive handouts from their respective governments, and are built in a market where thye have upto 80% in government charges applied to inported vehicles. Sure they may not have Tarrifs per say, but they do have size taxes and engine taxes and a miriad of other taxes applied to the imported vehicles to protect their own. But I suppose that’s fair because they are building them in developing countries aren’t they?
I also take it that you approve of their employees working in conditions that our own Auto shops outlawed in the sixties and taking home less a year than our emplyees take home a month?

SamR

So you want to protect the Commodore and Falcon?

Dinosaurs and the sooner they die the better.

Ford droped planned local production of the Focus, why protect a small engined Falcon? a joke.

Safety Frist

Ford Dropped Focus because of the above reasons. With only a 5% tarrif, and a Factory in Thailand that is under utilised with employees that cost less than 1/3 of the Australians yet Ford will recieve a higher amount of Govenrment Sponsorship there why would they build here??? Surely that isn’t really rocket science to understand is it?? Especially considering that Ford anounced the small car plans here and recieved NO monies from the Government and yet when GM startes thinkin about is they recieved 170mil. What would you have done??

The Realist

Perhaps you should tell the 100% American owned Ford and Holden their productivity is atrocious, and their business models are extremely poor.

Forget the tariffs, if the government stopped buying falcodores it would be bye bye auto industry.

I look forward to 1 January 2010.

My Cars Called T-Rex

ONE WORD “TOOL”

The Realist

Only two and a half months to go now…

jon

Too right The Realist, its about time they stop giving taxes to Ford and Holden. It would be cheaper to pension off the workers for life, that way the unemployment figures don`t take a hit.

Safety Frist

Why is it that none of you chose to include Toyota into this government handout whinge you carry on with?? They are surviving on just as (actually more than FoMoCo Aust) in Government handouts… How much are they getting to do a CKD Camry Hybrid here who’s forcasted market is to be (Toyotas own figures mind) 80% GoveCo Fleet.
It would be really interesting for some of you to look a little harder into the protectionism that goes on around the world and just how lenient / stupid the Government is in trying to work on a level playing field when no one else does… Time to stop and smell the roses, except you might find the fertalizer that has been used on the population over powers their perfume

AB

Exactly!
Not many people on this site actually seem to know much about manufacturing or how comparitively ‘un-protected’ Australia is.
The Realist

*Yawn*
Carfanatic

Realist! Yawning is a sign of a lack of oxygen, stop starving your brain son.

Jenson

Perhaps the imported car buyers can donate their tariff savings to the Aussie car workers who are being laid off…. My comment is tongue-in-cheek, but it is sad to see our manufacturing being sold out to imports, especially to front-wheel-drive 4 cylinder imports bleeeeeahh
JEKYL & HYDE

a bit cut off the tariff,a really strong aussie dollar, mr rudd’s investment finishing in december,and “runout”09 models,means car/ute sales should be great…
Gambler88

Correct me if I’m wrong but I thought most of Mazdas are made in japan which is quite expensive to live In so the wages should be on par if not dearer than say Australia. When people decides to buy a car they talk to their family and friends and unfortunately for Aussie made cars they have a bad reputation whether this is true or not. At the end of the day people put their hard earned money into something that has better quality than the same product. If Aussie cars are built to a higher standard I’m sure the consumers will come back in droves to support the local industry.

o

Japan has a huge population therefore it is viable its call scales of economy

Devil’s Advocate

Beemer says: October 12, 2009 at 2:12 pm “It is a shame that Mazda dosnt open a plant here considering they are the fourth biggest brand. they take so much from Australia but like many global companies they dont give anything back.”

That is an interesting but misguided statement Beemer. How do they sell and service Mazdas in Australia? Through Mazda Dealers. Do they import all the staff from the brand’s home country too to work in said dealers? I thought not. So they are providing jobs for Australians working in the dealerships, as with any other ‘import’ brand. Mazda, as do other ‘imported’ manufacturers, also sponsor sports teams, community events, charities etc etc. If that is not giving back to Australians, I don’t know what is.

Looking at it another way, how is buying a Mazda or any other ‘imported brand’ any different to buying any Toyota/GMHolden/Ford that isn’t a Camry/Aurion/Commodore/Falcon?

On a side note, my wife drives a 2003 Mazda 6 and guess what? The ‘factory’ external rear vision mirrors were made in Australia!

Beemer

I’l give you a hint, if those dealers werent selling Mazdas they would be selling something else, so the effect is neglible on the community. Its like the old Holden dealer in my town stopped selling Holdens as sales were taken over by more imports, and started selling Subarus. No jobs were ‘created’, rather just transferred.

Devil’s Advocate

You STILL don’t have a clue on how it works hey Beemer. I will say it another way. The ONLY money that goes to Japan is what the dealer pays for the car. All the rest of the money made on the sale over the dealer cost stays in Australia to pay the workers and operator costs (freight to LOCAL truck drivers, LOCAL detailers, etc etc etc). WRT spare parts/accessories, not all of them come from Japan (in Mazda’s case, insert the country of your preferred brand). You would be surprised how many accessories (mats, headlight protectors etc) and spare parts (ie, filters etc) are made in Australia. Not to mention many people option their car with tinted windows, interior/exterior treatments etc, do they send them overseas to get that work done? No, the supplier ‘down the road’ does it.

Also going by your logic, the ‘local 3′ don’t put a lot back into Australia either. Think about it. The majority of vehicle sales in TOTAL from the ‘local 3′ come from IMPORTED models. And WHERE do you think the money for the Cruze, Barina, Captiva, Epica(still on website), Colorado, Combo go? How is that any different to imported brands like Mazda? Look at VFACTS. I will use Holden as an example. Holden sold 9,744 cars in September. Of that 9,744 cars, 3,858 of them were Commodores. Even when counting the ute and LWB models less than 2/5ths of the cars Holden sell ‘give back’ to Australia. So going by your logic, Holden doesn’t give back much to Australia either. For information Ford is around the same percentage too with Toyota quite a bit less…

Beemer

OK, I think your the one who doesnt get it, Im saying if the Mazda dealer wasnt employing those people, another dealer would. I remember growing up when Holden had 50% of the market, nearly every town and street corner you could find a Holden dealer. Believe it or not these dealers also fitted carpet mats and headlight protectors and needed truck drivers to transport the cars…. now do you understand?
Oh and to somehow think that the loss of manufacturing facilites, component makers, recruitment facilities, catering companies, accounting offices, designers, stylists and engineers and other people/companies/skill sets who survive on local car making can be offset by carpet mat installing at a local Mazda dealer is ridiculous.

Devil’s Advocate

I DO get it, more than you by the look of it!! You are not looking at the bigger picture. I am only using Mazda AS AN EXAMPLE, as that is what YOU used originally by saying they give NOTHING back to Australia. I was just demonstrating that Mazda DO actually give something back to Australia. As I said, it is the SAME NO MATTER WHAT BRAND you use as an example. THEY ALL GIVE SOMETHING BACK TO AUSTRALIA IN ONE WAY OR ANOTHER, just some more than others! I NEVER said they ‘give back more’ than Holden, Ford or Toyota, but they don’t give NOTHING back like YOU said! Also, don’t forget that some imported manufacturers do have engineering teams in Australia for chassis development. That engineering skill set you mentioned is not just limited to the local 3. Sure, they may not number as many as the locals, but they are still there!
Devil’s Advocate

PS: Don’t get me wrong, I don’t want the locals to leave Australian manufacturing as much as anyone else. They are an extremely important part of our culture and provide some of the best value for money large cars in the world. However it is not just the local 3 that ‘give back’ to Australians, it is the car industry as a WHOLE. Yes, the ‘Local 3′ ‘give back’ the most, but they are not the only ones that do…

Jenson

If mazda sells 70,000 cars a year at an average of $30,000 a pop, thats over $2 billion revenue going to that one Japanese maker every year – who has no manufacturing in Australia whatsoever….. but hey at least they sponsor some sporting teams…

Car Fanatic

So the Australian dealer makes no profit? He doesn’t pay his Australian staff, because they work for free? What’s the point of being in business if all the money goes back to Japan?

And yes I’m being sarcastic!
Matty B

And what, Ford, Holden and Toyota keep money in Australia because they’re Australian owned? That argument holds no water what so ever.

The majority of money from sales goes to the Company, Government and then a small percentage to the dealers. The actual cost of producing the car is quite minimal. The Biggest cost is in the R&D of the new cars.

Bottom line, two things sell cars, product or pricing. Look at Hyundai, they’re making big moves at the moment because of their pricing. Now one thing I’ll give mazda some credit for, is the overall perception of the quality of their products has increased greatly in the passed 10 years. That’s why they’re selling a lot more cars.

I’d hate to see manufacturing stop in this country, but the bottom line is the market is changing, and the Local manufacturers are selling cars that aren’t as profitable as they used to be. And it’s their own fault, they’re too far behind the market and now playing catch up.

http://carz.com/ Carz

Mazda is a great car…early duty cut savings will definitely attract buyers…in a way it’s a good marketing strategy. Still, early savings or not, many would still buy this car, it’s one of the best cars nowadays.

G

Even with this called “advanced tariff cut”, Mazda’s driveaway prices are still higher than most other similar cars. Not real value in that.

mikebike77

@ Les

If you haven’t collected your car yet. You are entilted to the savings, regardless of whether or not the deal was done last month or any previous month.

In fact Even if you have taken delivery earlier this month, i.e. Oct 1st to Oct 11 the dealer should be contacting you to organise a refund. It is up to the individual dealer as an ethical issue. (can be debated either way )As they will be subsidised from Mazda.

How do i know? Because i have spent the last two days going through this and making phonecalls and sorting a ton of paperwork to organise said refunds to clients.

And yes i am a Mazda dealer.

I can go on and debate effectively with alot of you that dribble with half assed ill informed information and comments. But alas im off to make more money and make people smile with grins as big as the NEW Mazda 3 front grill!!

Whether you believe it’s a marketing ploy or dont think its a saving etc…

A reduction in price is better than nothing. Mazda has made the jump on the competition once again. Watch other manufactures regretfully follow suit.

Oh and by the way the only reason why Toyota is number 1 is because total sales is made up of FLEET i.e. MASSIVE discounts to buy their products. FLEET, RENTALS etc.

Mazda is Australia’s Number 1 retail manufacturer.

That is all.
Daniel

I doubt I will buy another Aussie made car. I really appreciate the unique design and value they represent and people who claim they are “dinosaurs” are just showing their ingorance about how far these cars have come in recent years. It is also true to say that Ford and Holden both make superb cars for long range touring in this country. Nothing else out there comes close for the comfort and perfomance they offer for the money. The also build very good performance muscle cars, that are beter then the American parents companies can produce too.

Now that all said, the build quality and some basic engineering flaws that always creep into these cars, get beyond frustrating to the point that you just give up on them. My GT had chronic driveline backlash and two diffs replaced. The Territory we have now, has rust and a diff bush failing. Both cars were relatively low mileage. This just isn’t acceptable.

Combine this with an appalling dealer network and poor customer relations and all of a sudden you don’t care so much about the good features of these cars. My Territory is a great drive and miles ahead of the Toyota Kluger, but it is flawed and Ford in not fixing it and looking after the customer. I am reminded repeatedly by things like this, why Ford does not deserve my business. Holden is not fixing the VE problems either and causing their customers similar headaches.

They really are their own worst enemies and that in the end is not a tariff issue. Its the culture of these two American car companies and their “near enough is good enough” attitude to customer perceptions that is putting them out of business in this country.
Daniel

For the record I also own a Mazda 6 MPS. The dealership experience has been infinitely better then Ford and the car has been faultless. Not hard to see why this brand is a favourite amongst private buyers.

Some people also forget that another reason why Mazda has a higher profile in Australia is because of the inadvertent marketing Ford did for them with the Laser and Telstar. People liked those cars and learn’t over time they were really Mazda designs. So they started looking at the brand a lot more closely.
quiet1

guys!!!!!

Can someone tell me whats the price of an automatic sp25 gonna be becoz of these changes???

Cheers
mikebike77

SP25 auto approx $35500 on road (depending which state you live because of different registration costs and stamp duty amounts).

Represents over $1100 saving

Janson

Wow thats pretty expensive still

mikebike77

Compared to what??? A Corolla? Hyundai?

$35k is not an expensive car these days.

Janson

For a small, front wheel drive 4 cylinder car, I consider it expensive, but each to their own
maz6 soon

Hi Mikebike,
I also ordered a Mazda 6 on 5th Oct and its due to be picked up end of Oct.
Contacted dealer today, waiting on a call back from Dealer Principle regarding issue of this saving now.
As you are a Mazda dealer, can I ask what State you are in?
Also would this full saving apply if I already got a fairly good discount to start with, or would it only be if I paid full price?
Like who would do that without haggling anyway
I now feel like the deal isnt so good anymore – like about $1570 no good!
I phoned Mazda Aust today to ask when this saving started and the response was he didnt think it was right across the board and only on a couple of models – when I said I thought that was incorrect according to printed meadia reports, he said he didnt know about that or when the savings came into effect and I would have to contact the dealer direct as it would be between myself and them only. Hmm, seems like a fob off to me.

Is this going to come down to dealer integrity?
As you are a dealer, and have done all this checking, what is your take on my comments please, would be much appreciated

SM

New prices are now up on the Mazda website…
Tinman

The strong Australian Dollar is going to do more damage to local manufacturing, than a 5% tariff reduction.
Holden is working on exporting the VE platform to the USA for Police work. The $AUD is not helping.
A 5% import tariff reduction is roughly the stamp duty on a $25 000 car. I chose $25 000, as this is about, what the majority of private buyers are prepared to spend. Given that the majority of us private buyers use credit to make the purchase, the amount is insignificant compared to the total borrow.

It’s nice of Mazda to bring it on early.
Now what about the strong Aussie Dollar Mazda? Where is that discount?

Devil’s Advocate

Don’t forget Tinman, Mazda is Japanese and most of their cars come from Japan. If you have noticed, the Aussie Dollar hasn’t changed much against the Yen so you may be waiting a while for that discount! Over the years I have noticed that Mazda seem to be one of the better ones WRT passing on discounts due to market changes like tarrifs and exchange rates.

Steve

Aussie dollar:
March ave = 60 yen
October ave = 80 yen

This is nothing more than Mazda Australia using exchange yate savings as a “discount”.

And BTW it’s false avdertising, because the govt duty take is still 10%, but it’s 10% of a lower starting $ value.

Tinman

Thanks Steve.
Devil’s Advocate

Go the A$!!! I can admit when I stuffed up, unlike many others on this site. Thanks Steve. Now for all the Japanese manufacturs, after all Mazda isn’t the only one, to pass on the ‘savings’. Highly unlikely though!
Devil’s Advocate

PS. I knew the A$ had gone up against the yen, but I didn’t think it was THAT much. I thought it was from the low-mid 70s to the low 80s it is now.

Steve

Actually it was the Feb Ave at 60 yen. March was 65 yen.

Source:
w w w.x-rates.com/d/JPY/AUD/hist2009.html

maz6 soon

Hi Mikebike 77,
I also ordered a Mazda 6 on 5th Oct and its due to be picked up end of Oct.
Contacted dealer today, waiting on a call back from Dealer Principle regarding issue of this saving now.
As you are a Mazda dealer, can I ask what State you are in?
Also would this full saving apply if I already got a fairly good discount to start with, or would it only be if I paid full price?
Like who would do that without haggling anyway
I now feel like the deal isnt so good anymore – like about $1570 no good!
I phoned Mazda Aust today to ask when this saving started and the response was he didnt think it was right across the board and only on a couple of models – when I said I thought that was incorrect according to printed meadia reports, he said he didnt know about that or when the savings came into effect and I would have to contact the dealer direct as it would be between myself and them only. Hmm, seems like a fob off to me.

Is this going to come down to dealer integrity?
As you are a dealer, and have done all this checking, what is your take on my comments please, would be much appreciated

Just to update,
spoke very briefly to salesperson this morning and have been told it was already factored into my price on 5/10. I said how could it have been when someone else said you didnt know about it then? but I was told that it was factored in with the Mazda monthly deal for Oct at the time?
Really not sure what to make of this or who to ask, as Mazda Aust.now seem to know nothing?