New Car Prices...

[chopstar87]

Just an open discussion in regards to prices of cars in Australia in general and why certain cars sell and etc. With the end of the automotive manufacturing ceasing in the coming to an end in the coming years. With people having to move on from their Australia made Falcons and commodores (for the new car buyers) they will start looking at other cars they never did before.

Anyways basically my thought process is that even if the LCT is removed or import taxes are removed from cars as there is no local industry to protect anymore, the higher end cars prices are never really going to drop in prices, because they will become too cheap for their desired place in the market.

For example:
In the states you can get a AMG A45 for about $49-59k. in OZ we are look at 95-1050K.

But a car like this with the Merc badge and the costs (plus performance in this case) it’s a aspiration item for many and are willing to pay the extra for it. But if it was say $50k, would it be hero car as it is now? Because it would be priced less then then HSV or the F6 or Golf R. People wouldn’t get that special feeling saying that they own a Merc, when its cheaper then a Lexus? Cheaper then a Ford or GM product.

Its just like the C-class and everything like that, the lower models are not very special and are very over priced here in OZ and they are a common taxis overseas like our Falcon and commodores are here, but people pay nearly double for them, so they have the “Merc Badge” and to 1 up there neighbour or friend who has a falcon or commodore. It wouldn’t have that affect if a VW or Ford or GM product was same spec and was more expensive.

Myself I purchased my 300c Luxury over a falcon because of features, value and also its individuality (they are not common where I am) and the look of it, which I like (I know others here don’t) and I get a lot of looks in it, which I don’t mind either, makes me a proud owner. The falcon for the price they go are a bargain, if you want a fast car (turbos or even the NA for a entry level which are quicker then a 86) or solid basic family vehicle, but have they become too common or the stigma with the falcon scared people away? Because it doesn’t have a merc badge or something? So it wont impress or better their neighbours? And it doesn’t have that magical Holden badge that a lot of people also crave.

Just like a Rolls Wraith, its around $350k in the states but $800-$900k here… $350k is still out of reach for the common folk in OZ, but its would not be expensive enough for the rich guy to buy to brag about because his buddys Bentley costs more. (image the prices were 350K. the 2nd hand market would be a bargain for a 2-3yr old model!)

Basically my point of all of this is, unless the WHOLE market changes, the prices of the more expensive cars will never really drop.. and the market will basically stay the same with pricing.

I just got thinking about all this when I saw the sales for the first 6 months of the year and the falcon was the 47th best selling vehicle over the first 6 months and the C-class merc outsold it, where the value comparison with the features of a vehicle can not be taken in to the consideration.

[xisled]

Australia is an island we pay more to live in a remote area of the world.

But if you are comparing the states you need to look at the average wage. Cars are priced at what people can afford.

In Australia you would not work for $3.00 an hour in America people do.

Also selling a car in Australia, you will have a smaller amount of people who want to buy the car due to the small number of people living in Australia. America have over 200 million people, Australia have 22 odd million people living here. The market for cars in Australia is small, so cars need to be sold at a higher price to cover costs.

Similar with other countries.

[danzvtil]

Retail prices of cars are based on what the market can bear, and other factors such as competition, have you noticed over the last few years real prices of most cars have come down relative to how well they are specced.
The shutting down of aussie manufacturing will have NO influence on market pricing in general as some think, im sure mazda don't look at a falcon XT for 40k d/a, then decide to make the 3 $22.5 driveaway.

[chopstar87]

The thing annoys me... that my car (300c luxury) there is only about 10k difference for the same the spec for spec with the same car in the states.

Merc, bmw and everyone else of the large car makers all have the same or better scale of numbers, but charge twice the price for the same car, then in the states or whatever else.

if chrysler can do it with their pricing model... why cant the rest???

Just think if chrysler followed the same pricing model and brought the hellcat to oz. We would be gettin a 707hp muscle car for 70-75k... but that wont happen to nxt gen.

[chopstar87]

The thing annoys me... that my car (300c luxury) there is only about 10k difference for the same the spec for spec with the same car in the states.

Merc, bmw and everyone else of the large car makers all have the same or better scale of numbers, but charge twice the price for the same car, then in the states or whatever else.

if chrysler can do it with their pricing model... why cant the rest???

Just think if chrysler followed the same pricing model and brought the hellcat to oz. We would be gettin a 707hp muscle car for 70-75k... but that wont happen to nxt gen.

[DanielXR8]

Originally Posted by chopstar87

The thing annoys me... that my car (300c luxury) there is only about 10k difference for the same the spec for spec with the same car in the states.

Merc, bmw and everyone else of the large car makers all have the same or better scale of numbers, but charge twice the price for the same car, then in the states or whatever else.

if chrysler can do it with their pricing model... why cant the rest???

Just think if chrysler followed the same pricing model and brought the hellcat to oz. We would be gettin a 707hp muscle car for 70-75k... but that wont happen to nxt gen.

Mercedes and BMW certainly can bring the price closer to parity with the US and not dissimilar to Chrysler, but why would they? So long as there is a healthy supply of gullible Australians so desperate to try and impress the neighbours with the new car the bank loaned them for three years, that they will pay just about anything for it, the good times at the Euro brands will continue. The incentive for BMW and Merc to revisit their pricing is nil.

My guess is when the LCT goes away, they will both put some trinkets in the cars and drop the retail price by a small amount while the mainstream media's attention is on them. Within three years after the media attention dies down, they will have clawed all those margins back.

People who think when the local industry is dead and buried they will see tends of thousands off the price of imported marques, marques that never in Australia at least, competed with the locals, are living in fairy land. Australia is one of the most profitable markets they have and plenty of mugs who whine and keep on paying the inflated prices asked anyway, will ensure it stays that way.

That is capitalism at work.

The ones i really like are the ones who demand the government force BMW to lower prices. As is Tony Abbott a hard core right wing politician is going to go all socialist to help the underprivileged afford their BMW.

[chopstar87]

yea that its, the demise of the local cars will not really affect the prices of cars at all.. and yea I don't blame Euros charging the price they can, if people pay it, why not charge it...they are a business and they are here to make money, and that's what I was getting out... unless the WHOLE market moves, the prices are going to get much cheaper, if at all.. and with the LCT and stuff if its removed, the prices aren't going to change much either really...

[Ducati888]

Originally Posted by DanielXR8

Mercedes and BMW certainly can bring the price closer to parity with the US and not dissimilar to Chrysler, but why would they? So long as there is a healthy supply of gullible Australians so desperate to try and impress the neighbours with the new car the bank loaned them for three years, that they will pay just about anything for it, the good times at the Euro brands will continue. The incentive for BMW and Merc to revisit their pricing is nil.

My guess is when the LCT goes away, they will both put some trinkets in the cars and drop the retail price by a small amount while the mainstream media's attention is on them. Within three years after the media attention dies down, they will have clawed all those margins back.

People who think when the local industry is dead and buried they will see tends of thousands off the price of imported marques, marques that never in Australia at least, competed with the locals, are living in fairy land. Australia is one of the most profitable markets they have and plenty of mugs who whine and keep on paying the inflated prices asked anyway, will ensure it stays that way.

That is capitalism at work.

The ones i really like are the ones who demand the government force BMW to lower prices. As is Tony Abbott a hard core right wing politician is going to go all socialist to help the underprivileged afford their BMW.

Precisely. I think it should be considered a community service to remove money from idiots, whether that be through overpriced merchandise, gambling or internet scamming. Apple, BMW and Merc clearly do too.