Why are cars in Australia so expensive?
#1
Why are cars in Australia so expensive?
I haven't been around here for a while.
Just thought i'd pipe in and ask for everyone's opinion.
I'm a bit peeved by the fact that the RX8 brand new here costs almost $60 000 whilst in the US they go for under $40 000.
Add in the cheaper fuel costs and lower taxes etc etc and it makes me sad.
I love Australia. I've been living here most my life.
But I'm at the point in my life where I can pack my things and go where ever my credit card can take me.
Starting to think living here with relatively high tax rates, expensive goods and services, unaffordable housing and soon to be recycled water is not a good idea.
Sure its beautiful. The people are great. And its my home. But can the odd trip down to the beach every now and then really justify such an expensive lifestyle?
I'm thinking Canada or the US is a good alternative. Cheaper, wider range of goods and services, higher incomes (for my career) and i can order on amazon.com.
Just thought i'd pipe in and ask for everyone's opinion.
I'm a bit peeved by the fact that the RX8 brand new here costs almost $60 000 whilst in the US they go for under $40 000.
Add in the cheaper fuel costs and lower taxes etc etc and it makes me sad.
I love Australia. I've been living here most my life.
But I'm at the point in my life where I can pack my things and go where ever my credit card can take me.
Starting to think living here with relatively high tax rates, expensive goods and services, unaffordable housing and soon to be recycled water is not a good idea.
Sure its beautiful. The people are great. And its my home. But can the odd trip down to the beach every now and then really justify such an expensive lifestyle?
I'm thinking Canada or the US is a good alternative. Cheaper, wider range of goods and services, higher incomes (for my career) and i can order on amazon.com.
#3
Buzz Buzz Buzz
Join Date: Mar 2005
Location: Melbourne, Victoria
Posts: 1,931
Likes: 0
Received 0 Likes
on
0 Posts
We have heavy duties on motor vehicles to regulate consumer spending in the market. We also have higher taxation on our petrol to regulate spending as well. It's all there for a reason.
Anyway, the duties on using a car are no where near as much as the duties of buying cigarettes ... when you buy a pack of durries, you're giving the government something like 80% of what you're spending on them ... the actual profit the tobacco company sees off the deck is something small like $1 tops!
Anyway, the duties on using a car are no where near as much as the duties of buying cigarettes ... when you buy a pack of durries, you're giving the government something like 80% of what you're spending on them ... the actual profit the tobacco company sees off the deck is something small like $1 tops!
#4
Registered
Join Date: Feb 2007
Location: Northern NSW, Australia
Posts: 325
Likes: 0
Received 0 Likes
on
0 Posts
A lot of it is price gouging by the importers.
In the US an RX8 is 31770 RRP. A 328 4 door BMW is 32400
Here the equivalent RX8 is $60400 RRP (you can get about 7k off that if you try)
The nearest (lower spec) is the 325 BMW at $75000 RRP.
BMW Australia gouge at least $15000 per car out of their badge slaves.
Mercedes and Audi do the same.
The Audi TT is $2000 US more expensive there yet that translates to $8000 Australian, about $4000 extra profit after luxury tax.
In the US an RX8 is 31770 RRP. A 328 4 door BMW is 32400
Here the equivalent RX8 is $60400 RRP (you can get about 7k off that if you try)
The nearest (lower spec) is the 325 BMW at $75000 RRP.
BMW Australia gouge at least $15000 per car out of their badge slaves.
Mercedes and Audi do the same.
The Audi TT is $2000 US more expensive there yet that translates to $8000 Australian, about $4000 extra profit after luxury tax.
#5
Registered User
Join Date: Aug 2003
Location: Sydney, Australia
Posts: 782
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by mogley
I'm a bit peeved by the fact that the RX8 brand new here costs almost $60 000 whilst in the US they go for under $40 000.
Mazda USA give the RX-8 around a 10% mark up on the domestic version where we suffer a 100% mark up. Then Mazda Australia wonder why sales are slow..........
We have almost 5000 here on the roads since sales began in mid 2003....... In other words. Mazda Japan sell around 4 RX-8's for every one sold in Oz. At half the price, its little wonder.....
I wonder how many M2, M3, M6 cars Mazda Australia would sell if they scored the same 100% mark up on their Japanese versions.
Taxes & duties is BS too. An M2 gets the same duty as an M3 + M6 + RX-8. However the RX-8 gets a small percentage of the price added via LCST (just the amount over $57k)
They are crooks. They only thing on their side is the fact that Toyota, Nissan & Honda Australia all try & do the same...........
REgards
#6
Registered User
Join Date: Mar 2005
Location: Perth, Western Australia
Posts: 65
Likes: 0
Received 0 Likes
on
0 Posts
They will price it at a point at which they think the market will bear which, primarily, is mostly factored around the size of the market and the competition (or lack of) from other products.
So, yes, if you want cheaper cars move to the US or Europe because we will continue to get ripped off for a fair while longer.
So, yes, if you want cheaper cars move to the US or Europe because we will continue to get ripped off for a fair while longer.
#7
Registered User
Join Date: Jun 2004
Location: Melbourne
Posts: 430
Likes: 0
Received 0 Likes
on
0 Posts
If compare to US then yes they are abit more than US.
But if you compare to taiwan. its all different, RX8 in Taiwan selling for around 80,000 AUD.
And 350Z selling for 90,000AUD
And both only auto.
But if you compare to taiwan. its all different, RX8 in Taiwan selling for around 80,000 AUD.
And 350Z selling for 90,000AUD
And both only auto.
#8
New Member
Don't even think you can go to Singapore then.
Singapore RX-8 goes for 130000 Singapore dollars, which is $120000 AUD.
It is all relative![Roll Eyes (Sarcastic)](https://www.rx8club.com/images/smilies/rolleyes.gif)
HK the RX-8 goes for $400K AUD which is 80K too
Singapore RX-8 goes for 130000 Singapore dollars, which is $120000 AUD.
It is all relative
![Roll Eyes (Sarcastic)](https://www.rx8club.com/images/smilies/rolleyes.gif)
HK the RX-8 goes for $400K AUD which is 80K too
#9
Shootin' from the hip
Join Date: Apr 2005
Location: Sydney, Australia
Posts: 7,584
Likes: 0
Received 0 Likes
on
0 Posts
Group buy of Japanese RX8's anyone?
Seriously, has anyone done the numbers on a private import from Nippon? If you're really looking at a $30K price difference, that's a lot of slack to cover transport, duty, etc, etc.
![Cwm27](https://www.rx8club.com/images/smilies/cwm27.gif)
Seriously, has anyone done the numbers on a private import from Nippon? If you're really looking at a $30K price difference, that's a lot of slack to cover transport, duty, etc, etc.
#10
New Member
I am quite sure by the time you get ADR and duty sorted out it will be over $70K....
Before my Honda Integra Type R (DC2), I was going to bring the Civic Type R from Japan. I was quoted $50K for one privately imported. Then I saw Honda Australia bringing in the Integra Type R for under $40K - then it was the end of my search really. No more private import after that.... unless there is something change in the last 10 years. It may be different when GST was introduced a few year back, I
Before my Honda Integra Type R (DC2), I was going to bring the Civic Type R from Japan. I was quoted $50K for one privately imported. Then I saw Honda Australia bringing in the Integra Type R for under $40K - then it was the end of my search really. No more private import after that.... unless there is something change in the last 10 years. It may be different when GST was introduced a few year back, I
![Dunno](https://www.rx8club.com/images/smilies/dunno.gif)
#11
Shootin' from the hip
Join Date: Apr 2005
Location: Sydney, Australia
Posts: 7,584
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by takahashi
I am quite sure by the time you get ADR and duty sorted out it will be over $70K....
For starters, what is it about the Japanese spec model that is not ADR compliant?
I accept that duty needs to be paid but does that really account for such a large chunk of the price differential between Japanese cars and those sold here by dealers?
I'm not trying to antagonise you here. You may well be right based on the past experience you mention. I just think with such a big price differential there may be a saving in a grey import and was curious to see if anyone out there had investigated it further.
![Dunno](https://www.rx8club.com/images/smilies/dunno.gif)
#12
New Member
For my old experience,
You have to get paper regarding windscreen, tension seat belt, etc etc. It is very stupid when I heard it. Maybe it has changed. The Civic type R I want to have before did not have tension seat felt and has to be installed.
The ECU tune is different - so they will get you to do a EPA test ---- $$$$$$.
It is a lot of paperwork and testing in JAPAN - before you can have all the paper and put it on the ship. (Alternatively you can have it in Australia for testing and running the risk of a rally car, being not able to register on the road)
For a MazdaSpeed model maybe it is worthwhile. A EVO9 MR may be. An STi Spec C and RA-R for sure
You pay extra more to get something different, but prob not the base model.
Even if it is cheaper, say within $5000 - would you brother? Think of the stuff you said in the warranty thread.
You have to get paper regarding windscreen, tension seat belt, etc etc. It is very stupid when I heard it. Maybe it has changed. The Civic type R I want to have before did not have tension seat felt and has to be installed.
The ECU tune is different - so they will get you to do a EPA test ---- $$$$$$.
It is a lot of paperwork and testing in JAPAN - before you can have all the paper and put it on the ship. (Alternatively you can have it in Australia for testing and running the risk of a rally car, being not able to register on the road)
For a MazdaSpeed model maybe it is worthwhile. A EVO9 MR may be. An STi Spec C and RA-R for sure
![Rock](https://www.rx8club.com/images/smilies/rock.gif)
Even if it is cheaper, say within $5000 - would you brother? Think of the stuff you said in the warranty thread.
Last edited by takahashi; 02-03-2007 at 12:44 AM.
#13
Shootin' from the hip
Join Date: Apr 2005
Location: Sydney, Australia
Posts: 7,584
Likes: 0
Received 0 Likes
on
0 Posts
I seem to remember reading recently that the ADR scheme has been altered to bring it more into line with world standards, so maybe this isn't as much of a drama these days.
Quite agree that a mere $5K saving wouldn't make it worthwhile to do without warranty. You'd lose at least that on comparative resale more than likely. But if it was a $15K saving, well, that buys a lot of mods.
BTW, that new Lancer shape looks promising. Kinda reminds me of that Alfa shape that some locals used to stuff a mid-engined V8 into (Giacattolo??). The next Evo might be worth a good long look come sale time...
Quite agree that a mere $5K saving wouldn't make it worthwhile to do without warranty. You'd lose at least that on comparative resale more than likely. But if it was a $15K saving, well, that buys a lot of mods.
![Rock](https://www.rx8club.com/images/smilies/rock.gif)
BTW, that new Lancer shape looks promising. Kinda reminds me of that Alfa shape that some locals used to stuff a mid-engined V8 into (Giacattolo??). The next Evo might be worth a good long look come sale time...
![Wink](https://www.rx8club.com/images/smilies/wink.gif)
#15
Shootin' from the hip
Join Date: Apr 2005
Location: Sydney, Australia
Posts: 7,584
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by takahashi
The MR version will be interesting - they are generally 1-2 sec faster than the GSR model that are sold in Australia
![Wink](https://www.rx8club.com/images/smilies/wink.gif)
#16
Registered User
Join Date: Mar 2005
Location: Perth, Western Australia
Posts: 65
Likes: 0
Received 0 Likes
on
0 Posts
Funny you guys should bring up the EVOX .... I have been thinking about a trade in and would consider that. Assuming it arrives here next year for under $60k and does sub 5 second 0-100 times it would certainly be on my short list.
For me, the previous evo's and sti's are just plain jane rice mobiles. Interior totally bland and boring, exterior not much better. However for the new evo, talk of sat nav and climate control and awesome performance is enough to get me interested. Exterior looks a little better too, though not entirely sold on the black nose.
For me, the previous evo's and sti's are just plain jane rice mobiles. Interior totally bland and boring, exterior not much better. However for the new evo, talk of sat nav and climate control and awesome performance is enough to get me interested. Exterior looks a little better too, though not entirely sold on the black nose.
#17
Shootin' from the hip
Join Date: Apr 2005
Location: Sydney, Australia
Posts: 7,584
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by capncrunch
Funny you guys should bring up the EVOX .... I have been thinking about a trade in and would consider that. Assuming it arrives here next year for under $60k and does sub 5 second 0-100 times it would certainly be on my short list.
For me, the previous evo's and sti's are just plain jane rice mobiles. Interior totally bland and boring, exterior not much better. However for the new evo, talk of sat nav and climate control and awesome performance is enough to get me interested. Exterior looks a little better too, though not entirely sold on the black nose.
For me, the previous evo's and sti's are just plain jane rice mobiles. Interior totally bland and boring, exterior not much better. However for the new evo, talk of sat nav and climate control and awesome performance is enough to get me interested. Exterior looks a little better too, though not entirely sold on the black nose.
![Freak Anim](https://www.rx8club.com/images/smilies/Freak_anim.gif)
Name me any car on the market with a list price less than $60K that will do 0-100 in under 5 seconds? That is serious performance, which costs. If the EvoX can do that for anything under $70K, they'll be snapped up.
Otherwise, I tend to agree with your assessment of their previous appeal. Fantastic track tools but butt ugly and a pain to live with day to day. However, given I need the 4 useable seats, a good looking EvoX with some creature comforts that blows the RX8 away performance-wise for similar money deserves at least some serious consideration as the next Revolvermobile.
I fear the RX8 is going to be left behind unless Mazda gets its finger out. The 350Z has just gone up in power, again, and it can only be a matter of time (presumably) before Subaru sacks the design tosser who came up with the Tribeca and employs a doodler who can draw a more attractive WRX/Sti.
So, for roughly the same kind of $60K spend as the 8, give or take $5-10K, you'll be able to buy 3 or 4 other cars that smack it in a straight line and are as near as makes no difference in handling ability. Unless you're absolutely hooked on the 8's looks, that's gotta make you pause come trade-in time, especially since the 8 is basically the same car with no update in sight. Not all of us can afford to step up to a 335i, even if we liked its looks.
![Smilie](https://www.rx8club.com/images/smilies/smile.gif)
And before the rotary zealots come in with the usual comments that cars like the 2 seater Z or sedan Evo/Sti appeal to people in different markets, blah, blah, blah, performance is a comparative benchmark that you can't ignore. The RX8 is obviously unique and has a lot about it to like. I just don't want it to be the slowest kid at school. Worse, something like the Celica was for many years - all show and no go (comparatively speaking).
<me climbs into the firesuit and sits back to wait for the first flamethrower
![Cwm27](https://www.rx8club.com/images/smilies/cwm27.gif)
Last edited by Revolver; 02-03-2007 at 10:08 PM.
#21
In between cars, RX8-less
Join Date: Feb 2004
Location: Sydney Australia
Posts: 463
Likes: 0
Received 0 Likes
on
0 Posts
OK lets bitch about prices will we:
Cars are expensive, no doubt about that, the car I have ordered has a real cost price of $89,000, however after goverenment taxes etc (Excluding on road costs and luxury car tax) it is $104,000. I am paying over $30,000 in tax on the car I have ordered. We are one of the highest taxed countriues in the world on motor vehicles, especially cars over $54,000 (Luxury vehicles).
Income tax: We are taxed at up to 42 cents in the dollar, we are slugged with fringe benefits tax, capital gains tax, GST, import duties etc etc.
Every which way we look at it we are being shafted for more and more money and it seems like we are one of the highest taxed countries in the world.
Really though we are 24th on the list, behind such countries as the UK, New Zealand, Canada, Sweeden (The highest), Germany and Spain. We only just pay more than the USA (We only pay 1% more of our GDP than the USA)
On the flip side:
I have travelled extensively all over the world for work and have the following advice for you Mogley,
USA - somethings are cheap like cars...but hell don't get sick if you don't have private health insurance (Private health insurance costs over US$15,000 a year). Incomes on average are 10% lower than in Australia, houses are no cheaper once exchange rate conversions are done for houses outside of major cities. If you want to live near or in a major city then forget about it, prices are very expensive.
You mentioned recycled water, most major US cities have been on recycled water for the pat 10 years, water shortages are nothing new.
You pay to use every amenity in the USA, beaches are often private and cost to attend. Parks are the same, I believe that the quality of life is much less.
Whilst tax seems more in Australia you actually get more for your tax dollar, you have free health, you have free education, you have a government that looks after you if you loose your job, get sick, can't work, don't work, have to look after dependants etc.
Look around you and have a look at the sky, in a lot of major cities you can't it is a grey haze of smog.
I understand you may feel taxes are high and we pay to much, however look at your age, look at what you have...tell me where else in the world you could have such a good life.
Cheers,
Gibbo
Cars are expensive, no doubt about that, the car I have ordered has a real cost price of $89,000, however after goverenment taxes etc (Excluding on road costs and luxury car tax) it is $104,000. I am paying over $30,000 in tax on the car I have ordered. We are one of the highest taxed countriues in the world on motor vehicles, especially cars over $54,000 (Luxury vehicles).
Income tax: We are taxed at up to 42 cents in the dollar, we are slugged with fringe benefits tax, capital gains tax, GST, import duties etc etc.
Every which way we look at it we are being shafted for more and more money and it seems like we are one of the highest taxed countries in the world.
Really though we are 24th on the list, behind such countries as the UK, New Zealand, Canada, Sweeden (The highest), Germany and Spain. We only just pay more than the USA (We only pay 1% more of our GDP than the USA)
On the flip side:
I have travelled extensively all over the world for work and have the following advice for you Mogley,
USA - somethings are cheap like cars...but hell don't get sick if you don't have private health insurance (Private health insurance costs over US$15,000 a year). Incomes on average are 10% lower than in Australia, houses are no cheaper once exchange rate conversions are done for houses outside of major cities. If you want to live near or in a major city then forget about it, prices are very expensive.
You mentioned recycled water, most major US cities have been on recycled water for the pat 10 years, water shortages are nothing new.
You pay to use every amenity in the USA, beaches are often private and cost to attend. Parks are the same, I believe that the quality of life is much less.
Whilst tax seems more in Australia you actually get more for your tax dollar, you have free health, you have free education, you have a government that looks after you if you loose your job, get sick, can't work, don't work, have to look after dependants etc.
Look around you and have a look at the sky, in a lot of major cities you can't it is a grey haze of smog.
I understand you may feel taxes are high and we pay to much, however look at your age, look at what you have...tell me where else in the world you could have such a good life.
Cheers,
Gibbo
#22
Registered User
Join Date: Mar 2005
Location: Perth, Western Australia
Posts: 65
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by Gibbo
Whilst tax seems more in Australia you actually get more for your tax dollar, you have free health, you have free education,
![Stick Out Tongue](https://www.rx8club.com/images/smilies/tongue.gif)
Revolver I do hope it's similarly priced to the current Evo. The sub five second times I've read about I don't know what version that is but considering the current one does mid 5's you would have to think the next one to land here will be quicker and for around the same money. Don't forget they need to keep it inline with the Sti pricing as I would imagine the Sti has a much bigger fanboi base to sell to.
#24
Guest
Posts: n/a
Agree with Gibbo.
Capncrunch, Well uni is kinda free, if u never earn enough money to repay ur HECS (or now as its called HELP) or you decide to leave the country, you never pay the government back lol Just if you ever decide to return then prepare to fork out the interest (course this applies to aust residents.. this why prob international students have to pay upfront lol)
But yes like Gibbo said we do enjoy a fair few luxuries compared to other countries. Our health sys, regardless some people think its still pretty ****, we do have it pretty good. I just hear stories from my relatives when they compare the health sys here to Greece. And how most of them reckon they would be dead if they lived in Greece! I know my grandparents do not have private health cover, being over their 80's, and whenever needed surgery its always promptly done and they are well taken care of.
Yes our tax rates are the highest, and they have dropped over the years, if you look back and see some of the rates that used to be paid. People just seem to think the rates are getting higher, but perhaps its because people just earning more....The "average" income is a lot higher then it used to be now..
Capncrunch, Well uni is kinda free, if u never earn enough money to repay ur HECS (or now as its called HELP) or you decide to leave the country, you never pay the government back lol Just if you ever decide to return then prepare to fork out the interest (course this applies to aust residents.. this why prob international students have to pay upfront lol)
But yes like Gibbo said we do enjoy a fair few luxuries compared to other countries. Our health sys, regardless some people think its still pretty ****, we do have it pretty good. I just hear stories from my relatives when they compare the health sys here to Greece. And how most of them reckon they would be dead if they lived in Greece! I know my grandparents do not have private health cover, being over their 80's, and whenever needed surgery its always promptly done and they are well taken care of.
Yes our tax rates are the highest, and they have dropped over the years, if you look back and see some of the rates that used to be paid. People just seem to think the rates are getting higher, but perhaps its because people just earning more....The "average" income is a lot higher then it used to be now..
#25
Shootin' from the hip
Join Date: Apr 2005
Location: Sydney, Australia
Posts: 7,584
Likes: 0
Received 0 Likes
on
0 Posts
Well said Gibbo and Kall.
You only have to look around you. People are doing it much easier in Australia these days and we take for granted many things that aren't available in other countries (or if they are, you pay a lot more for them).
There's so many cashed up people in Sydney these days it's insane
. I'm not exactly struggling but I sometimes wonder what the hell I'm doing with my time when I see what a lot of non-professionals are making.
When I was a kid it was pretty much unheard of for a P-plater to own something comparative to the RX8. If he did, he was a rich kid or a drug dealer (and sometimes both!).
We'd all love to pay less for our cars. Hell, wouldn't a $50K 911 be nice?! But I'm not complaining too loudly. I was just curious to see if it was possible to get around what must be a pretty generous profit margin for Mazda Australia on the 8.
And it'll be a cold day in hell before I willingly live in the US over this country. As they say, great place to visit and the people are lovely but...
(No offence intended to our American friends in here)
![Smilie](https://www.rx8club.com/images/smilies/smile.gif)
You only have to look around you. People are doing it much easier in Australia these days and we take for granted many things that aren't available in other countries (or if they are, you pay a lot more for them).
There's so many cashed up people in Sydney these days it's insane
![Eyecrazy](https://www.rx8club.com/images/smilies/Eyecrazy.gif)
![Freak Anim](https://www.rx8club.com/images/smilies/Freak_anim.gif)
![Cwm27](https://www.rx8club.com/images/smilies/cwm27.gif)
When I was a kid it was pretty much unheard of for a P-plater to own something comparative to the RX8. If he did, he was a rich kid or a drug dealer (and sometimes both!).
We'd all love to pay less for our cars. Hell, wouldn't a $50K 911 be nice?! But I'm not complaining too loudly. I was just curious to see if it was possible to get around what must be a pretty generous profit margin for Mazda Australia on the 8.
And it'll be a cold day in hell before I willingly live in the US over this country. As they say, great place to visit and the people are lovely but...
![Wink](https://www.rx8club.com/images/smilies/wink.gif)
(No offence intended to our American friends in here)