Are cars cheap in Australia?

Australia is a large and stunningly beautiful country, but despite its size, there are not many people living there. It is a land that is flat and arid, with peculiar rock formations and strange wildlife that can be dangerous. The outback is vast and stretches for miles and miles, and it is constantly baking under clear blue skies and strong sunlight.

Australia is a truly breathtaking country that offers a diverse range of experiences and attractions. Because of this, it is currently considered by many to be the best place in the world to go backpacking, and it has been for some time. Each year, Australia welcomes millions of visitors, many of whom are travelling on a budget in the form of backpackers. Despite this, Australia does have one drawback, and that is its massive size.

Traveling all over Australia can be challenging due to the country's size, which places it sixth among all countries in the world. If you want to get into the nooks and crannies of the country, if you want to experience the outback, if you want the freedom to travel where you want when you want, then there is only one mode of transport to take, and that is driving. There is no doubt that the transportation links throughout the country are excellent, but if you want to get into the nooks and crannies of the country, if you want to experience the outback, if you want the freedom to travel

The Australian automobile industry is winding down, and local production will cease the following year, which is what prompted the government to make changes to the Motor Vehicles Standards Act. Consumers will be able to import a brand-new car or motorcycle from a country whose standards are comparable to those of Australia under the new laws that will take effect in 2018. It must not be older than 12 months, and the odometer must not have more than 500 kilometres on it.

There is still work to be done on compiling a comprehensive list of countries that have comparable standards, but Japan and the United Kingdom are already in compliance with the standards for right-hand drive manufacturers.

Consumers will be able to avoid paying the hefty "Australia tax" that domestic luxury brands levy on imports of luxury goods, which will have a significant impact on the already thriving high-end sector. This will not have any impact on new cars sold in the low-end market. Used car prices across the board will fall as a result of the move, but once again, the decline will be most pronounced at the higher end of the market.

The government will also amend the Customs Tariff Act, which was first introduced by the Keating government and is now 21 years old, in order to remove the special duty of $12,000 on imported used vehicles beginning in 2018.

"Even in the limited situations in which it is permissible to bring previously owned automobiles into the country, consumers consider [the law] to be an obstacle that prevents them from doing so. We will be able to offer increased choice to Australian customers as a result of the removal of this duty "he said.

Another requirement, which stated that an identification plate must be physically affixed to an imported vehicle, will no longer be enforced. Instead, the information will be entered on a brand-new register for approved vehicles, which will save automakers an estimated $18 million each year.

Despite the fact that the laws were initially put in place to protect the local automobile industry, the government now views them as being unnecessary due to the closure of all manufacturing plants.

How much more expensive are automobiles in Australia when compared to the prices in other countries? Is it true that the cost of luxury vehicles in the United States is significantly higher than in other countries? Or was that just a myth that circulated before the mining boom?

The Fleetcare team has come to the conclusion that they should look into these questions on your behalf. What we found was a fascinating mix of the reassuring, the bewildering, and the downright depressing after using the most reliable new car price guides we could find for five different countries – Australia, the United States of America, the United Kingdom, Germany, and South Africa – and armed with exchange rates courtesy of the Reserve Bank of Australia.

Let's begin with the upbeat news first. When compared with prices in other countries, the cost of compact and economy cars in Australia is extremely reasonable. Only in the United States of America can you purchase the exact same Toyota Corolla for a price that is slightly lower than what it would cost you in Australia, which would be $22,990 rather than $22,990. (all figures in Aussie dollars). The same automobile in South Africa will set you back $28,521, while in Germany it will cost you $32,080 and in the UK it will cost you $37,910; this represents a significant increase of 65 percent in comparison to the price in Australia.

In Australia, the price of a Mazda 3 Hatch is significantly lower than it is in any of the other four countries, and in the grand scheme of things, the price of a Ford Fiesta is also reasonable.

Moving up to SUVs, which are currently one of the most popular vehicle classes on our roads, the Hyundai ix35 costs $32,190, which is only a little bit more expensive than it is in the United States ($29,218) and South Africa ($31,491) However, it is a significant amount less expensive than it is in the United Kingdom ($48,930) and Germany ($52,377), where it costs 63 percent more.

So far, so good. When we consider more upscale options, the outlook for the Australian driver becomes less optimistic. If an Australian corporate executive decides to treat herself to a nice, shiny Mercedes Benz E Class car after a lifetime of wearing suits and going to dull conventions, she will be disappointed to learn that the price tag for such a vehicle is one hundred thousand dollars. When you compare this to the cost of $84,000 in Germany, $73,000 in the United States, $62,000 in South Africa, and $60,000 in the United States, you can see why your company's executive might start to wonder where all of their hard-earned money is going. Is it possible that the Australian Taxation Office was involved in this matter in any way?

What about the handyman starting his own business providing maintenance for swimming pools? Surely, if he purchases a legendary pickup truck like a Toyota Hilux, he will be making a sound investment? I'm afraid not. When compared to the price of a new ute in the United Kingdom at $35k, in South Africa at $33k, and in the United States at a mere $29k for the equivalent Toyota Tacoma, he will be required to pay a total of $48k. It is correct that he would have been required to pay $54,000 in Germany; however, how many swimming pools are there in Berlin?

However, you have not been told the worst of it yet. It is time to grab a box of Kleenex, folks, because what we are about to share with you has the potential to make you shed a tear or two. You have been a Master of the Universe for the past 28 years and currently work for an investment bank in the Central Business District. In the past three years, you haven't had a life and have instead been sleeping under your desk and subsisting on All-Bran and Chinese takeout food, but now that it's bonus time, all of that is about to change. You make your way to the local Porsche dealership to pick up your new 911 Cabriolet, which set you back an impressive $296 thousand. You're going so fast down the freeway that you just have to use the hands-free feature to talk to your buddy in Johannesburg about how cool your new toy is.

To be fair, almost everything is less expensive in the United States, and since they sell a lot more cars than other countries, their economies of scale are different. Despite this, the cost differences are still quite significant.

If you ask any representative from the industry about them, they will be sure to point out that our tax system causes our list prices to be significantly higher, and that our imported luxury cars typically come with significantly higher levels of specification than the base models that are sold in the United States of America.

What we don't know, and what the car companies will never tell us, is how much profit these businesses are making per unit in Australia in comparison to their relatives in the United States and Europe. Are we being pillaged like some remote island in search of treasure, or are we getting a good deal in the grand scheme of things?

How much extra would you pay for a new vehicle?

Does money equal love? If this is the case, then Australians may be able to make the claim that they have the greatest passion for automobiles in the entire world. At least, that's what our investigation into the prices of various automobiles has shown. We compared the prices for various models of cars sold in the United States with those sold in Australia, determined the AUD equivalent of the price in the United States, and then calculated the price disparity.

According to the findings of the comparison, Australians pay up to 185.14 percent more for vehicles than our friends in the United States do, and this is the case regardless of whether they are purchasing a standard passenger vehicle like a Honda Civic or a luxury brand like Jaguar or Rolls-Royce.

If you finance the purchase of your vehicle with a car loan, as is common practise in Australia, the interest you pay on this price tag will make the gap between the two amounts even more pronounced.

How much of the extra we pay is tax?

More than 1.15 million automobiles were sold in Australia in 2015, which resulted in the collection of over $6.5 billion in revenue for the Australian government in the form of various taxes, stamp duties, and other fees.

It is estimated that somewhere in the neighbourhood of twenty percent of the price that you are paying for a new vehicle ends up in the hands of the government.

A portion of this is the Goods and Services Tax (GST), but there are also import tariffs on cars from certain countries, and then there is the very special Luxury Car Tax, which we have been paying large sums of money for since the year 2000, despite the fact that other luxury vehicles, such as yachts and helicopters, are not taxed in the same manner.

The LCT is applicable to new vehicles with a price tag of more than $60,316 (yes, this seems like a very arbitrary and slightly low price to define a luxury vehicle). However, you won't be eligible for it until you've spent $75,375 and provided that your luxury vehicle has a low fuel consumption rate (defined as using less than a claimed 7.0 litres per 100 kilometres on the combined cycle).

Therefore, if you want to buy a car that costs more than those amounts, you will have to pay an additional tax of 33 percent to the federal government. This must make the federal government almost as happy as it must make luxury importers unhappy.

When we asked Porsche why it didn't sell its wondrous and mental 918 track car for the road in this country, they told us that the reason was because when they told interested customers the price, they just couldn't come at the idea of paying $300,000 of the $1 million sticker to the government. This was something that Porsche had told us in the past.

As if that wasn't more than enough, you also have to pay money to the government in the form of stamp duty and registration, which, in a nutshell, refers to everything else that is included in the category of 'on-road costs' with your new vehicle.

The proposed changes have been criticised by Tony Weber, CEO of the Federal Chamber of Automotive Industries (FCAI). This is because major automakers whose products are sold in Australia are dissatisfied with the country's treatment of their customers.

The FCAI, he said, "has repeatedly called on the Government to carefully consider the facts before making a policy decision that will mislead everyday consumers." The FCAI has repeatedly urged the government to weigh the evidence before making policy decisions that could mislead ordinary consumers.

"By telling people that a used car with 500 kilometres or one that is 12 months old is new, the government is not only taking a 'buyer beware' attitude, which would put many Australians in dangerous situations with their vehicles outside established service networks, but it is also misleading consumers. Many Australians would be put in perilous positions if this happened."

"Brands that sell in Australia make substantial investments in Australia in the form of dealerships, workshops, technology, and training in order to support and service their products," Customers can rest assured that their vehicles will be serviced and repaired correctly, and recalls will be properly documented, alerting them to any issues that may arise.

Despite this, people who are passionate about cars and have access to a lot of cash will be considering the options and calculating how much they will save on luxury vehicles. There is the possibility that they will save tens of thousands of dollars compared to the prices that are currently being charged locally.

When all local taxes are taken into account, the price of importing a brand new, fully-optioned Tesla Model S P90D from the United Kingdom into Australia will be approximately $244,000; the price of purchasing the same car in Australia will be slightly more than $254,000. And that is one of the analogies that comes the closest.

Porsche, a German luxury goods manufacturer, contends that if the Australian government wanted to lower prices, they would do away with the tax on luxury automobiles.

Why doesn't the government get rid of the luxury car tax if they are serious about making automobiles, especially high-end automobiles like the Porsche, more affordable for the average person to buy? Porsche Australia spokesman Paul Ellis said.

His company is one of those that will be one of those that will be most affected by the changes. There will be significant price differences when importing from the UK, depending on whether or not buyers are willing to give up a local warranty.

If you wanted a Porsche 911 Carrera S in Australia, you're looking to pay $274,012 driveway. If you import? $230,425 total cost, which includes all taxes, fees, and freight. Even at the bottom of Porsche's lineup of sports cars, they are feeling the pinch, as it will cost approximately $115,000 (including government fees) to import a new Boxster 718 from the UK, whereas it will cost $125,000 to buy one locally.

What about a Lotus Elise as an alternative? Due to the fact that it narrowly avoids paying the luxury car tax, importing one from the UK will set you back approximately $60,000, including delivery. Buying it locally will set you back a little more than eighty thousand dollars.

The BMW M4 comes in a close second. The price of importing the vehicle from the UK is approximately $153,000, while the price in Australia is $166,000 before on-road costs.

Also, let us not forget that the prices that have been used are all just the standard prices in the UK; we have not taken into account any specials that dealers may offer.

Later on this year, legislation will be presented to Parliament with the intention of putting the changes into effect.

So are all our cars more expensive than overseas?

It is dependent on who you believe and the type of vehicle you are considering purchasing.

According to 'Mapping the World's Prices,' a report published by Deutsche Bank in 2015, which found that Australia was the most expensive place on Earth to live (taking into account car prices, among other things), a new Volkswagen Golf would cost you $34,000 in Australia. This is in comparison to the price of a new Volkswagen Golf in Tokyo, which used to be the most expensive place on Earth, which was $23,000.

These figures have been vehemently refuted by the local industry, which has stated that they are not comparing apples to apples or similarly specified Golfs in their study.

However, additional research carried out in 2015 by Commsec discovered that when Australian car prices were compared "like for like" with those of other right-hand-drive markets, they were found to be extremely competitive.

According to the findings of the study, an Australian making the median wage would have had to toil for a total of 24.2 weeks in order to afford a brand new Ford Falcon. This figure represents the best (i.e., the fewest number of weeks) it has been since 1975.

According to Commsec analyst Craig James, "there probably hasn't been a better time to buy a new car, at least not in the past 40 years." This statement refers to the time period between 1970 and 2010.

"This helps to explain why a growing number of Australians are choosing to purchase typically more expensive four-wheel drive or sports utility vehicles rather than conventional passenger cars. ...and the reasons why sales of luxury cars are breaking all kinds of records.

"According to the statistics provided by the ABS, a number of consumer goods, including clothing, footwear, and small electrical items, as well as computers and televisions, are significantly more affordable today than they were 20 years ago.

"If you look at the features of a modern car and the safety, you're getting even greater value than the figures suggest, whereas a kettle back then was comparable to the one that we have now," said the author.

The Federal Chamber of Automotive Industries (FCAI), which represents the automotive industry in the United States, has been singing the praises of some in-depth research that was conducted by Auto Express in the United Kingdom.

The magazine looked at 11 countries, including the United Kingdom, Japan, the United Arab Emirates, Germany, Russia, South Africa, the United States of America, Venezuela, India, Brazil, and Australia, using a VW Golf 1.4 as the benchmark car. The article was published towards the end of the previous year and was given the title, "Car running costs: how much does it cost to run a car around the world?" (Car running costs: how much does it cost to run a car around the world?)

India had the lowest cost of all the markets with a price of $15,195, followed by Russia with a price of $25,916, and Australia came in third with a price of $25,925.

Using a method of comparison developed by The Economist, it was discovered by GoAuto in their report that was published in May of the previous year that Australia has the lowest prices in the world for right-hand drive automobiles.

Tony Weber, Chief Executive Officer of the FCAI, stated that the findings of the Auto Express report provided further confirmation of the fact that the new car market in Australia is one of the most competitive in the world.

However, there is little doubt that more expensive cars, the very top end of the market, are more expensive here than they are in other places. Automotive industry insiders claim that this premium is due to the relatively small market for those vehicles, and thus a lack of competition at the higher end of the market.

Maybe we ought to switch lanes and begin driving on the opposite side of the road.

Conclusion

Australia is an enormous country with breathtaking scenery, but its population is surprisingly small. The outback is enormous, stretching for countless kilometres, and it is perpetually scorching hot due to the bright, unclouded skies and intense sunlight. Backpackers can find some of the best conditions in Australia. Beginning in 2018, the government will amend the Customs Tariff Act to eliminate a special duty of $12,000. As a result, used car prices will fall across the board, but as before, the effect will be felt most strongly at the higher end of the market.

Mazda 3 Hatch prices in Australia are significantly lower than in the other four countries surveyed. Our tax system results in significantly higher suggested retail prices. The standard equipment on luxury vehicles is usually much more extensive than that on entry-level U.S. models. When compared to the United States, the cost of a new car in Australia is 185.14% higher. This holds true whether one is discussing a budget-friendly Honda Civic or a high-end Rolls-Royce.

Over $6.5 billion was brought in to the Australian government thanks to the sale of more than 1.15 million automobiles in 2015. Vehicles with MSRPs over $60,316 are subject to the LCT. But you can't get it until you've dropped at least $75,375 on a high-end car. German luxury goods producer Porsche claims the Australian government could reduce prices by eliminating the tax on high-end vehicles. When importing from the United Kingdom, prices will vary greatly depending on whether or not the buyer prefers a local warranty.

In Australia, you'll need $34,000 to buy a brand-new Volkswagen Golf. To import the vehicle from the UK will cost around $153,000. This is in contrast to 23 years ago, when a new Volkswagen Golf cost $23,000 in Tokyo, then the most expensive city in the world. Comprehensive investigation by the British publication Auto Express. The cheapest market overall was India, with a price tag of only $15,195.

The Economist found that the cost of right-hand drive vehicles in Australia was the lowest in the world. Professionals in the auto industry state that the high price tag is justified by the limited demand for such vehicles.

Content Summary

• Because of this, it is currently considered by many to be the best place in the world to go backpacking, and it has been for some time.
• Consumers will be able to import a brand-new car or motorcycle from a country whose standards are comparable to those of Australia under the new laws that will take effect in 2018.
• This will not have any impact on new cars sold in the low-end market.
• Used car prices across the board will fall as a result of the move, but once again, the decline will be most pronounced at the higher end of the market.
• The government will also amend the Customs Tariff Act, which was first introduced by the Keating government and is now 21 years old, in order to remove the special duty of $12,000 on imported used vehicles beginning in 2018."Even in the limited situations in which it is permissible to bring previously owned automobiles into the country, consumers consider [the law] to be an obstacle that prevents them from doing so.
• Instead, the information will be entered on a brand-new register for approved vehicles, which will save automakers an estimated $18 million each year.
• When compared with prices in other countries, the cost of compact and economy cars in Australia is extremely reasonable.
• In Australia, the price of a Mazda 3 Hatch is significantly lower than it is in any of the other four countries, and in the grand scheme of things, the price of a Ford Fiesta is also reasonable.
• It is correct that he would have been required to pay $54,000 in Germany; however, how many swimming pools are there in Berlin?However, you have not been told the worst of it yet.
• To be fair, almost everything is less expensive in the United States, and since they sell a lot more cars than other countries, their economies of scale are different.
• We compared the prices for various models of cars sold in the United States with those sold in Australia, determined the AUD equivalent of the price in the United States, and then calculated the price disparity.
• According to the findings of the comparison, Australians pay up to 185.14 percent more for vehicles than our friends in the United States do, and this is the case regardless of whether they are purchasing a standard passenger vehicle like a Honda Civic or a luxury brand like Jaguar or Rolls-Royce.
• How much of the extra we pay is tax?More than 1.15 million automobiles were sold in Australia in 2015, which resulted in the collection of over $6.5 billion in revenue for the Australian government in the form of various taxes, stamp duties, and other fees.
• The LCT is applicable to new vehicles with a price tag of more than $60,316 (yes, this seems like a very arbitrary and slightly low price to define a luxury vehicle).
• However, you won't be eligible for it until you've spent $75,375 and provided that your luxury vehicle has a low fuel consumption rate (defined as using less than a claimed 7.0 litres per 100 kilometres on the combined cycle).Therefore, if you want to buy a car that costs more than those amounts, you will have to pay an additional tax of 33 percent to the federal government.
• As if that wasn't more than enough, you also have to pay money to the government in the form of stamp duty and registration, which, in a nutshell, refers to everything else that is included in the category of 'on-road costs' with your new vehicle.
• The proposed changes have been criticised by Tony Weber, CEO of the Federal Chamber of Automotive Industries (FCAI).
• Porsche, a German luxury goods manufacturer, contends that if the Australian government wanted to lower prices, they would do away with the tax on luxury automobiles.
• The price of importing the vehicle from the UK is approximately $153,000, while the price in Australia is $166,000 before on-road costs.
• Automotive industry insiders claim that this premium is due to the relatively small market for those vehicles, and thus a lack of competition at the higher end of the market.

https://www.youtube.com/watch?v=cH8VoN6Y7nQ