ppmz

Why are C32, C55 so expensive in Australia? For example, average prices at the moment are about:

C32 A$32,000
C55 A$62,000

And the dollar is actually worth slightly more than the USD at the moment.

Just a rhetorical question really, I think I know the reasons. I just want to have a little whine

You Americans (and Brits for that matter) have it so good.

moosejaw

Does the Commodore and Falcons hold similar values?
Or maybe due to the fact they are rare and offer exactly what Aussies want
Fast, 4 doors/ V-6 or V-8 power and their status.

Consider that the Australian median income is close to $70,000 AUD.
That is a lot more than here.

AMG055

The current value of the Aussie dollar against the US dollar does not mean that a second hand imported vehicle should be worth less. When the Aussie dollar falls will that mean that second hand imported vehicles will rise in value? The answer is no.

Our median incomes being higher or lower as compared to another nation has no bearing on the value of vehicles in Australia. The only reason vehicles here cost more compared to the US and UK is because of the level of commonwealth government tax. Sales tax prior to the GST was high on imported vehicles in order to maintain the local car industry. Now we have the GST and luxury car tax. GST is charged after the luxury car tax has been applied in other words we pay GST on the luxury car tax. The commonwealth makes more money out of a $150,00 imported car than the manufacturer.

Simple fact is anything to do with cars costs a hell of a lot more here than it does in the US. The commodore SS sold as a Pontiac in the US sold for less in the US than it did here and it had a few more standard features as well.

thtguy

could you buy a car from UK or Japan (keeping right hand drive) and have it shipped to AU? seems like that would be a cheaper option. unless of course you still have to pay taxes on it once it lands.

moosejaw

From your reply I couldnt figure out if you answrered the OPs question.....So then what determines a used AMG value being so high?
Could it be....

Does the commonwealth heavily tax used foreign vehicles as opposed to your domestics?

-or-

Does the inflated value of these cars with the tax carry over onto the used car market?

Whats the tax rate for a luxury foreign car these days

BTW my point being that if Australians have more disposable income, would it not reflect the higher purchase point of any product?

lkfoster

As I recall from when I lived down under import duties are up in the punitive range. Got to protect the market for common ****** and that other brand.

Viper98912

Biggest reason is import tariffs placed on the manufacturers.

AMG055

Moosejaw, the level of disposable income does not affect the cost of vehilces or other consumer items. Imported vehicles have been heavily taxed to the extent that prior to the introduction of the GST here on 1 July 2000 it was basically half the cost of an imported vehicle was comprised of government taxes. The high level of government taxes was to protect the local domestic manufacturers, Ford, Holden and Toyota. This in turn allowed the satellite industries to the auto manufacturers to remain in business and keep people employed. The introduction of the GST got rid of the sales and wholesale taxes that we had but these were replaced with the luxury car tax which is 33% that presently applies to vehicles over $57,466.00. A tariff was applied to all imported vehicles that has been reduced over the years. Im not sure if the traiff has been removed now or if it is 5%. The exchange rate also plays a role as well.

Second hand imported vehicle values reflect the original taxes imposed and are also determined by market forces of supply and demand.

Importing a used vehicle from the UK or Hong Kong for example will attract GST and luxury car tax and customs duty. There are also compliance issues to meet local design rules, vehicles over 5 years of age have lower tax rates. Imported vehicles of vehicles sold here attract lower values compared to Australian delivered vehicles.

What I have outlined above is a simple explanation of our system.

Our car part prices are also high. I priced rotors and pads for my CL55. Front rotor price for each was $957.00 plus 10% GST of $95.70 making a total of $1,052.70 for each rotor. In the US you can get OEM front rotors for $282.00 or less. The manufatcurers make a killing on their parts here.

moosejaw

Okay so what would a C32 cost brand new in 2002 compared to 8 years later?
Does it follow the same amount of depreciation (%) as it would in the US?

Thats crazy you would pay that much for brakes

AMG055

Moosejaw, I also fogot to mention that on top of the GST and luxury car tax (LCT) we also pay State stamp duty on the purchase price. In NSW the stamp duty is 3% up to $45K and 5% for the amount over $45K and it is calculated on the sale price of the vehicle which includes the GST and LCT. In other words you pay stamp duty on the GST and LCT that you are paying. Tax on tax.

I think that new a C43 in 2002 was about $160,000 but I can confirm in about a week when I return home from holidays. As to the rate of depreciation I do not know what you have in the US but I find that here in Aus that after about 4 years irrespective of what car you have it is worth about half of what you paid for it. After 4 years a 2010 CL63 that cost new $436,000 driveaway in Sydney will be worth about $180K.

Yes the brake prices are crazy as are the other part costs. I have imported front and rear rotors, pads front and rear and sensors for $1,793.00 including shipping, less than the cost of purchasing 2 front rotors here!! And yes the rotors and pads are OEM I purchased them from a Merc dealer in New York.

joeljp

The main reasons are tariff and luxury car tax imposed on imported cars. That's why new Mercs/BMW are insanely expensive compare to the US and UK. Then the market has to try and maintain the used car value to some degree, otherwise no one would ever buy these luxury vehicles for fear of its value falling off a cliff.

Beaker

We have the luxury car tax as of only a while ago so things are only going to get more $$$

There are a lot of mid range VW's, Mercs etc still on the road it's just the top end you don't see as many, but I suppose that is relative to everywhere in the world.

Buying my C32 just over a year ago for $41 000 was a steal, great condition but it's value already dropped. Being only 22 at the time it was a lot of money but luckily I could afford it. I think relative to income levels, socio-economic status algorithms and all of that our price of cars isn't far off the states etc.

Beaker

Depreciation I would suspect to be about the same rate. It's all relative to value and demand, correct? I'd think both our markets to be on abour PAR with this with the distribution of motor vehicle classes/types.

moosejaw

Then this is what explains the OP's question why prices are still high down in Oz
There were high to begin with.

OT but I didnt know the C43 was available for the 2002 model year down there.

thtguy

!!!!

So wait, how much would a new Veyron go for, sounds like it would probably be the GDP for a 3rd world country.