Are Australian Car buyers getting ripped off?
Sydney, 12th September 2013 – Australian luxury cars still up to double cost of UK, US despite recent price slashing – A CarAdvice report.
Luxury car manufacturers deny overcharging Australian buyers despite high-end vehicles costing up to more than double the price of other countries, according to a new CarAdvice report.
Brands including Rolls-Royce, Porsche and McLaren slashed prices of their models by a total of about $1.5 million in 2013.
McLaren accused rivals of over-pricing, though Rolls and Porsche cited a strong Australian dollar at the time for the reductions while the majority of luxury car companies continue to blame the government for excessive taxation.
A study of global car prices by CarAdvice, Australia’s leading independent motoring website, still reveals major disparities between showroom stickers here and countries including the United Kingdom, Japan and the United States.
An entry-level Porsche 911 sports car, for example, costs the equivalent of $95,000 in the US where in Australia it is priced from $206,500.
A Rolls-Royce Phantom coupe costs from $1,019,000 in Australia yet is a relative bargain of closer to half a million Australian dollars in the US and UK.
The government’s Luxury Car Tax (LCT) continues to be one of the chief culprits in relation to local prices. The LCT slugs Australian buyers 33 per cent on the price of a vehicle over a threshold of $60,316, or $75,375 if the vehicle is deemed ‘fuel efficient’.
The LCT is imposed on the vehicle price already including the goods and services tax (GST).
After allowing for stamp duty and import duty, however, significant gaps in prices between Australian and other markets still exist.
Porsche Australia says its pricing positioning relevant to competitors is consistent across the globe.
Mercedes-Benz Australia says it works to similar profit margins to other markets, and argues that luxury cars have become much better value.
The German brand also says that if Australians believe luxury cars are too expensive, they simply shouldn’t buy them.
But Australians are buying them – and in increasing numbers.
The latest new car sales figures reveal that large cars over $70,000 are up 5 per cent year on year, medium cars over $60,000 are up 7 per cent, and limousine-size cars are up 22 per cent.
The biggest rise is for small cars over $40,000, which include the likes of the new Mercedes-Benz A-Class and Audi A3. Sales for this segment have increased 67 per cent compared to this period last year.
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