Car values in 2018

[SteveC]

http://www.drive.com.au/motor-news/australian-buyers-allowed-to-import-new-cars-from-2018-20160210-gmq65e.html

interesting times...

[tazzieman]

http://www.drive.com.au/motor-news/australian-buyers-allowed-to-import-new-cars-from-2018-20160210-gmq65e.html

interesting times...

Ellis said the parallel import plan could also affect used car values in Australia. Porsche enthusiasts are likely to be among those hit hardest by the measure. Currently, Porsche 911 residual values are among the highest of the sports enthusiast market.

All because of PFA 

[tomo]

German luxury brand Porsche argues that if the government intended to bring down prices in Australia they would abolish the luxury car tax.

“If the government is serious about making motor cars, especially high-end motor cars like the Porsche, more affordable to the consumer, then why doesn’t the government abolish the luxury car tax?” Porsche Australia spokesman Paul Ellis said.

His business is one of those that will be most affected by the changes, with big price differences when importing from the UK if 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 including all government fees and freight. Even at the bottom of Porsche’s sports car lineup they’re hit, costing around $115,000 to import a new Boxster 718 from the UK including government fees compared to $125,000 buying locally.

What about a Lotus Elise? Importing one from the UK will cost around $60,000 delivered due to it just scraping in under the luxury car tax. To buy locally it’ll cost you a little over $80k.

Then there’s the BMW M4. Importing from the UK will cost around $153,000, while in Australia it costs $166,000 before on road costs.

And let’s not forget that these prices used from the UK are all just standard prices, not factoring in specials that dealers might have.

Legislation to implement the changes will be introduced into Parliament later in the year.

[turboT]

Brands like Porsche and Audi have had it too good for too long. Margins on these cars have only been possible because of a protected market place. They should treat this as a wake up call, reduce their pricing and look to establish their own import system to compete with others that inevitably enter the market. With a 30-40% difference of course people are going to look else where, but if it was a matter of 10 -15% I am sure most would still opt with the local boys. 

LCT would apply to a car whether imported or bought locally to makes no difference. 

I don't see Porsche not offering warranties either on imports. They make far more money servicing your car over its life time so it would be stupid of them to not include you in a warranty scheme, as long as globally they had some connection to the original source of the car. 

Deffinatelly going to screw with the second hand market if they start discounting new cars to compete. Might be time to offload unwanted 997s/991's....

 

[KGB]

 

They make far more money servicing your car over its life time so it would be stupid of them...

Porsche would probably be the only brand that DOESN'T, considering the new car margins they obtain locally.

This game with the Europeans (did someone say Germans?), and their pricing here, has gone on for so long that they will never lower prices to that arbitrary level we all believe they should be (European equivalent).  It's basically a non-complicit cartel, similar the the fuel industry, they all know that if one of them reduces prices they all need to reduce prices.  Sales would have to improve by a multiple to retain total gross dollar margins.  Ain't gonna happen in our lifetime's boys.  I'll bring the white board to the next SMT.

[ByronBayChris]

 

I don't see Porsche not offering warranties either on imports. 

 

they say, on their own site, that a car is covered at any global Porsche centre.

[Coastr]

The other issue is that existing customers get mighty dark when you add an extra $50k depreciation to their already horrendously depreciating vehicle.  This will play havoc with the used 991 market.  I understand why they do it, but, well, you guys made hay for years, suck it up.

At the g-series end, it won't make any difference. At the 964 and 993 end it will just add a tiny bit to supply, but it's not like the UK and Japan are crawling with 993s the locals are not interested in so we can buy them at bargain prices.

 

the unanswered question is what does it do to the 'oz delivered' premium.  Make it higher, dilute it away, make no difference?

my guess is that an increasing amount of imports removes the stigma of imports and levels pricing.  But it could equally go the other way by making oz deliveries proportionally rarer.   But anti-import I think was traditionally a by word for buying a car with known history that never saw a salted road.  If they come in brand new, what's the difference?

[Snowman]

We went over the maths initially and unless our $$$ improves significantly I can't see people buying a $200K car that could potentially have warranty issues - along with headaches like locally supported Sat Nav etc just to save <10% of the purchase price. 

But if our $$$ does strengthen again come 2018 that may change.

What I do see however is a chance to get some cars that we can't otherwise purchase locally. There really isn't any P Cars we don't get that come in RHD, but there are a bunch of fun UK cars we don't see over here from companies like Radical, Ginetta, TVR, Morgan, Caterham, BAC etc that would be a hoot to own. 

 

Or for Ford fans - you really want a GT350R with the flat plane crank that they aren't going to sell here - now you can get one from the UK!

[turboT]

they say, on their own site, that a car is covered at any global Porsche centre.

exactly

[Coastr]

Ultimately I think the dealers will get on board.  After all, it is the HQ and not the dealer that makes all the gouging profit.

cheaper cars means more punters in through the door when the dust settles.

maybe it is the springboard for dumping the LCT as well, who knows?  I never thought this would happen.

[turboT]

At the g-series end, it won't make any difference. At the 964 and 993 end it will just add a tiny bit to supply, but it's not like the UK and Japan are crawling with 993s the locals are not interested in so we can buy them at bargain prices.

this only applies to cars less than a year old with bugger all kms - so really only new cars. I'm not sure if brand new cars will have the same import stigma.

Most current newer imports have been owned a few years at least in the country of origin and have then been subjected to their 'diverse climates' hence the stigma. If you are buying off the showroom floor in Belgium, UK or Sydney i don't think you would care.

maybe we should have a new classification:

"showroom import" 

[Scott930]

maybe we should have a new classification:

"showroom import" 

bit like the old "Tourist Delivery"?

 

[edgy]

 

bit like the old "Tourist Delivery"?

 

Good point! 

This new legislation might make the old Euro delivery a possibility again.... of course manufacturers would have to support it! 

the 500kms thing might put a damper on things though. 

[KGB]

 

maybe it is the springboard for dumping the LCT as well, who knows?

Guvment giving up tax dollars, ah huh.  Wonder what the annual LCT tax take is?

Wonder what the annual LCT tax take is?

He's your answer smarty;

2014-15  $1,312,000,000*

*includes both WET and LCT

If you drink and drive prestige motors you're taxed like a bloody idiot.

 

[tazzieman]

I know PA have had the opportunity to reduce prices before , but wouldn't because it would piss off customers who had paid full price. Pissed off , they move to Merc & Audi etc. After all they sell more non-sports cars nowadays so lots of choice.

Well this gubmental move is gonna piss everyone off , except those circling the second and third hand market, and those braving an O/S purchase.

Though if Porsche honours warranties , what's the worry?

Bring it on , competition improves the breed.

[Dreamr]

I'm wondering if these new laws might sporn some "import dealers" ......

"Buy your brand new car through us and we'll take care of all the details, from purchase to shipping to delivery"

Could end up being an awsome little business .....

[edgy]

I'm wondering if these new laws might sporn some "import dealers" ......

"Buy your brand new car through us and we'll take care of all the details, from purchase to shipping to delivery"

Could end up being an awsome little business .....

I thought there is already plenty of import brokers thanks to the Japanese Domestic car market? 

 

 

[Dreamr]

 

I thought there is already plenty of import brokers thanks to the Japanese Domestic car market? 

 

 

I don't know about current import brokers ..... but with the market opening up so much to include Brand New cars from almost any maker, I'm sure people will see more of an opportunity to either specialise or offer an order and purchase service.

[spiller]

I'm wondering if these new laws might sporn some "import dealers" ......

"Buy your brand new car through us and we'll take care of all the details, from purchase to shipping to delivery"

Could end up being an awsome little business .....

They already exist and have done for years. Google Iron Chef Imports, Adelaide based company that started off bringing jap imports but now works with american and european cars. For sure though, this is an opportunity for these businesses to drastically expand and up their game with the ability to bring in brand new cars.

[ByronBayChris]

I'm wondering if these new laws might sporn some "import dealers" ......

"Buy your brand new car through us and we'll take care of all the details, from purchase to shipping to delivery"

Could end up being an awsome little business .....

yes....was waiting for this. I'm sure most dealers here at the moment will also create a parallel import business. Good idea. Can't beat em, so join em.

[KGB]

Surely that little Porker dealer in far away Butt****nowhere EX2 8FD would also be in cahoots to seize such an opportunity.

And tell me again why you couldn't have the VAT rebated?

[Coastr]

I know PA have had the opportunity to reduce prices before , but wouldn't because it would piss off customers who had paid full price. Pissed off , they move to Merc & Audi etc. After all they sell more non-sports cars nowadays so lots of choice.

Well this gubmental move is gonna piss everyone off , except those circling the second and third hand market, and those braving an O/S purchase.

Though if Porsche honours warranties , what's the worry?

Bring it on , competition improves the breed.

game theory in Pfa.  My we are a grouping of learned gents.

Surely that little Porker dealer in far away Butt****nowhere EX2 8FD would also be in cahoots to seize such an opportunity.

And tell me again why you couldn't have the VAT rebated?

you can...actually you don't pay it at all if its for export.

[hugh]

2018........POA? 

That was so 2015 though, 

[Oldmxnut]

See Porsche bubble topic !!!..  All of a sudden what is "rare" in Australia won't be so rare…  How many right hand drive 991 GT3RS available now in a few years time. (or the comparative future "rare" model)

I dont agree with people still not importing for a 10-15% price difference. I believe some will for the vehicle they want and the availability.  

Interesting examples in other industries:  Maloo boats (Aus dealer) call them grey imports and fight hard not to touch them and go out of way not to help.   Caterpillar dealers (in Aus) charge the off shore originating dealer from where the machine come an internal service charge (rumour 5-7% of the value) to support the warranty when machine turns up in the area.

It will be interesting to see how Porsche treat its "grey import" vehicle owners. Second class citizens not deserving of its support or first class citizens of a true global porsche market.

 

[firstone]

They'll get one board. It's just another income stream supplementing or replacing the existing.