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Offline JBO


  • Joined: Sep 2011

  • Drives: Something that doesn't meet my aspirations...yet...
  • Location: Adelaide
A futile attempt to defend the indefensible, or a valid response?

You decide!

http://www.carpoint.com.au/news/2011/prestige-and-luxury/bmw/why-bmws-cost-more-here-27452

This anonymous clan of slack-jawed troglodytes has cost me the election, and yet if I were to have them killed, I would be the one to go to jail. That's democracy for you. - C Montgomery Burns.



Offline carmooch


  • Joined: Dec 2010

  • Name: George
Having spoken off the record with brand comms managers in the past... they completely hold our Government responsible for the price of cars in Australia. They are basically have no choice but to include more standard equipment as a means to justify the higher price tag forced on them by the Government.

Although one thing you do have to keep in mind is that the advertised price of a car in Aus is often right on the money, with most being able to get a new car even cheaper than the advertised drive away price whereas in the US the advertised cost is often thousands less than the actual drive away price.



Offline nuxi


  • Joined: Apr 2010

  • Drives: Porsche Cayenne
  • Location: Melbourne
  • Name: Michael
Having spoken off the record with brand comms managers in the past... they completely hold our Government responsible for the price of cars in Australia. They are basically have no choice but to include more standard equipment as a means to justify the higher price tag forced on them by the Government.

Although one thing you do have to keep in mind is that the advertised price of a car in Aus is often right on the money, with most being able to get a new car even cheaper than the advertised drive away price whereas in the US the advertised cost is often thousands less than the actual drive away price.

We are forever getting screwed! I'm patiently waiting for the next M3 Coupe F80/82. I wonder if there will be a price change, lower or higher than the outgoing model. Although I don't think the price has changed at all regarding the previous to current M5.



Offline Nobleambitions

  • Back from the naughty corner.

  • Joined: Jun 2011

  • Location: Sydney, NSW
:( We are all forever screwed. I don't think any car manufacturer is going to substantially drop the price of any of their new models without pissing off a lot of their current customers. Like Chrysler did.

In the middle of last year, Chrysler announced free on-roads for all of their 300C variants, reducing the price of their V6 base model to $49,990 driveaway. Many people would have been convinced by their local dealers that this was a great deal, and would have purchased the car. A while later, taking advantage of the strong AUD over the USD, Chrysler announced a drop of at least $10,000 on all of their 300Cs. This would have shattered any potential reasonable resale value for their 2010 customers, who were now left with cars worth (without considering used up warranty, KMs traveled, the fact their car was a used vehicle) 20% less after only weeks of ownership.

While Chrysler doesn't have much presence in Australia, BMW on the other hand is a much more established marque, and is a premium brand with thousands of customers. A 20% price drop on any of their models would remove millions of dollars from their customers in terms of resale. Even though there are some customers of BMW and Mercedes-Benz who are willing to pay practically any amount for their cars, there is no doubt they would experience some level of disgust/annoyance at losing money due to a decision by one of the marques. While Australia's higher car prices are not entirely due to LCT, GST and duty, they cannot be lowered without significant backlash from existing owners (hence the many extras in our cars that are only options overseas, making up for the consistently higher prices). Now I've only studied business at a very basic level, in theory, but I'm guessing it wouldn't be worth it to risk thousands of existing customers' repeat sales just for a few hundred new ones.



Offline mhh

  • Chief Test Pilot

  • Joined: Feb 2006

  • Location: Adelaide
I agree with the guy who says if you don't like the price, don't buy it.  Anyone in business knows the whole idea is to price the product or service as high as you can get away with.  If the cars are selling, why would BMW sell them any cheaper -  they would be idiots to.

BMW don't have a monopoly in the car business.  If someone can make a better product cheaper, they will lose sales.  It's called competition.



Offline Wattens

  • Free Mustache Rides
  • The only wrong decision is Regret

  • Joined: Jan 2010

  • Drives: Cars
  • Location: Earth
  • Name: Knob Head
For one I see right through their bullshit PR crap.

Sure Aussie BMW's may have a little more extras than other markets, but I hardly think that standard leather interior and satnav costs much for them. Definately not $20k difference worth.

Besides a 320d in Germany also comes standard with equipment that we don't get in Asutralia, most of these are things related to snow/fog and cold conditions which the cars in Australia don't come with like front and rear fog lights, traffic updates through the radio, 4 spare winter tyres on 4 spare BMW rims..... i'm sure there is more but that is what I have seen first hand.

http://ninemsn.carpoint.com.au/news/2011/prestige-and-luxury/bmw/why-bmws-cost-more-here-27452

I wonder if anyone really belives these companies bullshit excuses?
You can say I'm wrong, but my garage doesn't agree with that statement!!!



Offline JBO


  • Joined: Sep 2011

  • Drives: Something that doesn't meet my aspirations...yet...
  • Location: Adelaide
This anonymous clan of slack-jawed troglodytes has cost me the election, and yet if I were to have them killed, I would be the one to go to jail. That's democracy for you. - C Montgomery Burns.



Offline Dave_A


  • Joined: Nov 2010

  • Location:
  • Drives:
I WE buy, then they WILL sell......Simple as that!

Besides,what choice do we have? Falcadore? I think not!




Offline Nobleambitions

  • Back from the naughty corner.

  • Joined: Jun 2011

  • Location: Sydney, NSW
I wonder if anyone really belives these companies bullshit excuses?
Of course no one believes them, but what Mhh says is true: if people are paying that much for cars, BMW or any other manufacturer will not bring down the price, unless sales slow down, which is what happened to Chrysler with their 300C. Of course the manufacturers can't just say "we want more money" so they need a PR friendly "reason."



Offline anotherforumuser

  • AE's voice of reason
  • Choose to take risks or settle for ordinary.

  • Joined: Sep 2010

  • Drives: A red car.
  • Location: Downunder
What I love about accessories or upgrades is that they are always three times their real cost and never discount the value of the things they replaced. Example would be a $5000 wheel upgrade, they add the price of the wheels but dont take $1800 off for the value of the wheels that were already on there.



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