[NickG]

Originally Posted by docbeemer

How about starting with our scum government and telling them to get rid of luxury car tax (kicks in at about $55k - that's what a hotted up falcon or commodore costs- the very cars the tax was designed to protect from cheaper and superior foreign imports!!!).

I say, if our car industry can't compete on price/quality/features after 50 years of tarrif and tax protection, then stuff 'em. Let us all buy cheap beemers instead. :mad: :mad: :mad:

Hate to tell you Doc, but this is simplistic nonsense. And I'm no apologist for the Howard government BTW. Luxury tax and import duty account for a relatively small fraction of the US/Aust price difference. By far the major factor is BMW's global pricing strategy, which has virtually every market effectively subsidising the lower margins in the US - their most important offshore territory by far. BMW are far from unique either. It's down to simple economic reality.

BMW - like other luxury marques - sell at the prices they do in Australia largely because they can. The fact that they can easily earn a very substantial price premium relative to notionally "competitive" vehicles ( take Subaru liberty 3.0 vs 325i for example) is the key reason they are one of the most profitable car companies in the World. This of course also leaves them with far more cash to plough into R&D and niceties like better trim/finish to maintain the superiority of the product., so people like you and I will buy it.

If you don't believe me, according to manufacturer's websites:
US retail Subaru Liberty (legacy) GT spec B: US$33995
US retail BMW 328i ( no 325 over there!) : US$32400.

Aust retail Subaru Liberty GT Spec B: A$55990
Aust retail BMW 325i : A$73800

'nuff said! So let's stop blaming the government for protecting our "inefficient" manufacturers. If anyone's to blame, it ought to be BMW,Audi, Mercedes, Porsche and just about every other prestige Euro manufacturer.

And ponder this: if you didn't consider your BMW to be acceptable "value" in terms of what it offered ''you", why did you buy it?? So exactly who are you fighting for anyway- the poor souls who want one but can't afford it?

[astra]

those price differences are very interesting... kinda hurts

[recruiter]

Just thought this may be of interest

Base price of 335i 6 speed $89329

Dealer charge $3995

GST $9525

Luxury car tax $10858

Stamp duty $4885

NSW Rego and CPT $660

Plus any accessories

[astra]

WOW, that GST and LCT kills it dealer charge isn't so hot either...

certianly an eye opener!

[Chris.G]

Originally Posted by recruiter

Just thought this may be of interest

Base price of 335i 6 speed $89329

Dealer charge $3995

GST $9525

Luxury car tax $10858

Stamp duty $4885

NSW Rego and CPT $660

Plus any accessories

The extra charges are bad but the base price of a 335 is more then the base price in US so it does show NICKG's point. BMW here in AUST has thought to charge us BMW enthusiests more

[astra]

it's because they can, and they know people will pay... sucks for the customer, but probably a good move by BMW aust... they are raking it in...

[vinno]

Originally Posted by astra

WOW, that GST and LCT kills it dealer charge isn't so hot either...

certianly an eye opener!

Yeh I realised when getting a car, dealer charge is NOwhere close to what it costs for them to deliver the vehicle from the docks to the showroom..
If you're really persistent and annoying to your new car sales rep, you can prolly cut a few corners in certain areas, starting with the dealer delivery charges..

[NickG]

Originally Posted by astra

it's because they can, and they know people will pay... sucks for the customer, but probably a good move by BMW aust... they are raking it in...

Precisely!

[BMW //MPOWER]

If you want to make things worse and see the disparity, look at a new M3 in the US, 50k USD drive away, so that should translate to say 63k AUD, but what is it here, not 63k AUD but $160K AUD!!! i can't wait until i get to move to the US for work!!

[astra]

that's f***ed...

[Chris.G]

we already know its ****** but we can't do much about it.

[BMW //MPOWER]

Well the only thing we can do about it is go live in the US and drive sweet ass cars!! But there are other drawbacks about living in the US, but i won't go into them here as we're talking about the cars

[astra]

but i want a ferrari.. moving to the US won't help that...

[BMW //MPOWER]

Well you can get a mid 90's 355fi spyder here for 150k if you want? Still a top car in my eyes... and only the price of an M3...

[astra]

my all time fav is the f430 spyder...

[BMW //MPOWER]

Oh yeah that's a top car, i'm hanging for the new Dino, that should be in a more reachable price bracket, unless i have an amazing year at work and they decide to pay me a nice big bonus!

[astra]

i would need to win the lotto 10 times over lol

[BMW //MPOWER]

Lol, well i can make some career suggestions if you'd like...
Primarily head off to uni and then try and get a job at a good bank....
Always works the treat.

[astra]

ahh, money making isn't the top priority in life for me.. it's doing what i like, and being happy doing it... but you do need money to live

[docbeemer]

Originally Posted by NickG

Hate to tell you Doc, but this is simplistic nonsense. And I'm no apologist for the Howard government BTW. Luxury tax and import duty account for a relatively small fraction of the US/Aust price difference. By far the major factor is BMW's global pricing strategy, which has virtually every market effectively subsidising the lower margins in the US - their most important offshore territory by far. BMW are far from unique either. It's down to simple economic reality.

BMW - like other luxury marques - sell at the prices they do in Australia largely because they can. The fact that they can easily earn a very substantial price premium relative to notionally "competitive" vehicles ( take Subaru liberty 3.0 vs 325i for example) is the key reason they are one of the most profitable car companies in the World. This of course also leaves them with far more cash to plough into R&D and niceties like better trim/finish to maintain the superiority of the product., so people like you and I will buy it.

If you don't believe me, according to manufacturer's websites:
US retail Subaru Liberty (legacy) GT spec B: US$33995
US retail BMW 328i ( no 325 over there!) : US$32400.

Aust retail Subaru Liberty GT Spec B: A$55990
Aust retail BMW 325i : A$73800

'nuff said! So let's stop blaming the government for protecting our "inefficient" manufacturers. If anyone's to blame, it ought to be BMW,Audi, Mercedes, Porsche and just about every other prestige Euro manufacturer.

And ponder this: if you didn't consider your BMW to be acceptable "value" in terms of what it offered ''you", why did you buy it?? So exactly who are you fighting for anyway- the poor souls who want one but can't afford it?

Excellent response. And I agree with you entirely. The luxury car tax, in my opinion is just an unnecessary impost on us all. I am in a position to tax deduct my car and I can only do so up to the luxury car tax limit- so I hope you can see where I'm coming from. I was being simplistic on purpose just to make a point. In so far as pricing strategies, ALL manufacturers will charge a price which fits in with their marketing strategy and a price as high as the market will bear. The "perceived" value of a car between people and coutries varies widely and all car companies are very well aware of this. I bought my BMW because I think it's a great car and i really wouldn't mind if everyone in Aust. drove one.

[docbeemer]

Originally Posted by recruiter

Just thought this may be of interest

Base price of 335i 6 speed $89329

Dealer charge $3995

GST $9525

Luxury car tax $10858

Stamp duty $4885

NSW Rego and CPT $660

Plus any accessories

Everyone, pay attention here. $20000 taken but the federal government and $5000 to the state government. That's $25,000 in taxes on a $90,000 car!!! And we all pay income tax as well!!! The governments do pretty well for doing nothing. :mad: :mad: :mad:

[NickG]

Originally Posted by docbeemer

Everyone, pay attention here. $20000 taken but the federal government and $5000 to the state government. That's $25,000 in taxes on a $90,000 car!!! And we all pay income tax as well!!! The governments do pretty well for doing nothing. :mad: :mad: :mad:

Actually it's worse than you state because there's import duty too! Still that's the price we pay for living in an "enlightened" country, where - unlike the US - the poor can access respectable healthcare for example, and it doesn't cost $40,000 to put your kids thru University etc etc.
Still there's no doubt that for the well paid, the US has a far higher standard of living than us. The two greatest cost burdens for most of us are our mortgages and our cars. In the US mortgages are tax deductable, cars are the cheapest in the World, and salaries for professionals are far higher than here. Now as to quality of life ( as opposed to standard of living) that's another matter....

This doesn't detract from my earlier point though. I reckon at least $35k (maybe more) of the US/Aussie cost difference for 335i is wholly attributable to BMW global pricing strategy, bearing in mind there are also duties and taxes on cars in the US.