[OT] Cost of Dollar and importing cars

[gvix]

Does anyone have any idea why the cost of cars keeps on increasing while the dollar is so strong? It is not as if the dollar has been strong only for a few weeks. It has been strong and with almost parity with USD for a long time!

Yet, car prices still keep going up.

A BMW X5 as per the US website, is priced at $47,200. Same comparable car in Australia? $103,000 driveaway. That is more than double.

I understand that there are lot of variables. Our luxury car tax, imports, GST, cost of doing business etc. But, a car that retails for $47,200 in the US sells here for $103000? Really?

What am I missing? I know that importing cars is pretty restrictive, unless you have lived in the said country, but there must be some way of importing cars rather than pay such a hefty premium here?

Thanks for all insights!

 

[medhead]

Just did the BMW factory tour last week and based on the comments from the guide there are also very big difference between the US and Australian markets.

They used to have an overseas delivery program for Australia and still do for the US. That was a way to make substantial savings on the cost of a BMW with minimal hassle.

 

[cove]

The profit expectation of our local importers is very high.
Imported cars in the US are amazingly low priced but Australia has a slew of car taxes like GST,luxury car tax and finally fringe benefits tax.
Suggest you look at the least expensive car that your ego will allow you to drive.

 

[Will]

Anyone have any idea how much a new mustang convertible would cost, delivered in Aus?

 

[trooper]

No idea... but when adding it all up remember to add in the cost for conversion to Right hand drive... pretty sure Vic requires that.. as does NSW..


In general, only cars over 25/30 years old can be driven in LHD in the eastern states...

 

[Mal]

It costs a lot to get a car certified (safety wise) in Australia. Then there is the cost of shipping, the smaller market, cost of the dealer networks etc etc etc.

I still think they're overpriced - but they are the usual reasons you'll be told.

 

[cove]

You can fix your Ford Mustang idea by going to the US and hiring one for a few days.
That is the perfect way of resolving your thoughts and you don't have to mess with conversions and design rules.
I looked up carsales new car site and it is not listed as available off the Australian car dealer shelf.
For $3k you can go and get this out of your system and move on to a Tesla or a Viper...........

 

[lovestotravel]

Imported cars in the US are amazingly low priced but Australia has a slew of car taxes like GST,luxury car tax and finally fringe benefits tax.
Suggest you look at the least expensive car that your ego will allow you to drive.

Pretty much!

It's the taxes that kill us here :evil:

Two reasons they exist.

1. Tax..
2. To try to force us to buy locally made cough

 

[lovestotravel]

Anyone have any idea how much a new mustang convertible would cost, delivered in Aus?

Not that much to buy, but you cannot drive it unless you get it converted to RHD and go through the associated paperwork.

The Mustang itself is cheap

$35,000 for a base model
Add on shipping, customs and duty and you are already starting to get screwed
Convert to RHD and associated ADR compliance :shock: - $20,000+ (haven't looked at this for years)

So you are looking at $65000+

Then you don't really want to leave the car anywhere as too many jealous morons won't like it and will end up damaging it.

Best be buying a 325i coupe or something and not be as noticeable!

 

[Will]

Not that much to buy, but you cannot drive it unless you get it converted to RHD and go through the associated paperwork.

The Mustang itself is cheap

$35,000 for a base model
Add on shipping, customs and duty and you are already starting to get screwed
Convert to RHD and associated ADR compliance :shock: - $20,000+ (haven't looked at this for years)

So you are looking at $65000+

Then you don't really want to leave the car anywhere as too many jealous morons won't like it and will end up damaging it.

Best be buying a 325i coupe or something and not be as noticeable!

Thanks for that and for everyone's advice!

Unfortunately driving one in the States - actually two, from Miami to Key West, and from LA to San Diego - has increased my bug to have one!

The substantial costs look like a disincentive though And it's not quite the same once converted to RHD!

I checked the rules, and in Victoria are quite onerous (Vehicle standards information : VicRoads)

Maybe when I win the lottery I'll import one :mrgreen:

 

[Moopere]

The ultimate reason for the price differentials you see is our restricted market. I am interested in Mercedes Benz's - 400K MB here is available for a little over 80K pounds in the UK brand new.

A _lot_ of the price difference is Australian taxes, including LCT, but not all. The rest is mainly due to law which prevents, for most people, the importing of cars that are not on this list:

Specialist and Enthusiast Vehicle Scheme (SEVS)

Ruling No


The list of cars is arbitrary, not according to logic or an algorithm. Essentially, if your import is <1989 you are likely to be ok - but still need Australian Design Rule (ADR) compliance of course, obtained at fair expense via RAWS workshops generally.

Newer cars can be applied for addition to the list, but don't hold your breath. If the car you want to import is locally available via manufacturer or dealership network you've got almost no chance at all.

You really are probably better off living overseas for a year and bringing your purchase back with you as a personal import - far from free too of which transportation is only a minor inconsequential cost.

All is not lost though. If you want a classic Aston Martin, Porche or Lamborghini (<1989) then you should be fine. Such vehicles can be purchased in Europe for very reasonable money and if you choose carefully they will already be RHD. 10-20K Euro would get you within range of a lot of these sorts of cars. Transport, tax, compliance etc would probably blow the bill up to 50-70K, but still cheap for such a classic car compared to locally available models.