New Car Prices...

[chopstar87]

Just an open discussion in regards to prices of cars in Australia in general and why certain cars sell and etc. With the end of the automotive manufacturing ceasing in the coming to an end in the coming years. With people having to move on from their Australia made Falcons and commodores (for the new car buyers) they will start looking at other cars they never did before.

Anyways basically my thought process is that even if the LCT is removed or import taxes are removed from cars as there is no local industry to protect anymore, the higher end cars prices are never really going to drop in prices, because they will become too cheap for their desired place in the market.

For example:
In the states you can get a AMG A45 for about $49-59k. in OZ we are look at 95-1050K.

But a car like this with the Merc badge and the costs (plus performance in this case) it’s a aspiration item for many and are willing to pay the extra for it. But if it was say $50k, would it be hero car as it is now? Because it would be priced less then then HSV or the F6 or Golf R. People wouldn’t get that special feeling saying that they own a Merc, when its cheaper then a Lexus? Cheaper then a Ford or GM product.

Its just like the C-class and everything like that, the lower models are not very special and are very over priced here in OZ and they are a common taxis overseas like our Falcon and commodores are here, but people pay nearly double for them, so they have the “Merc Badge” and to 1 up there neighbour or friend who has a falcon or commodore. It wouldn’t have that affect if a VW or Ford or GM product was same spec and was more expensive.

Myself I purchased my 300c Luxury over a falcon because of features, value and also its individuality (they are not common where I am) and the look of it, which I like (I know others here don’t) and I get a lot of looks in it, which I don’t mind either, makes me a proud owner. The falcon for the price they go are a bargain, if you want a fast car (turbos or even the NA for a entry level which are quicker then a 86) or solid basic family vehicle, but have they become too common or the stigma with the falcon scared people away? Because it doesn’t have a merc badge or something? So it wont impress or better their neighbours? And it doesn’t have that magical Holden badge that a lot of people also crave.

Just like a Rolls Wraith, its around $350k in the states but $800-$900k here… $350k is still out of reach for the common folk in OZ, but its would not be expensive enough for the rich guy to buy to brag about because his buddys Bentley costs more. (image the prices were 350K. the 2nd hand market would be a bargain for a 2-3yr old model!)

Basically my point of all of this is, unless the WHOLE market changes, the prices of the more expensive cars will never really drop.. and the market will basically stay the same with pricing.

I just got thinking about all this when I saw the sales for the first 6 months of the year and the falcon was the 47th best selling vehicle over the first 6 months and the C-class merc outsold it, where the value comparison with the features of a vehicle can not be taken in to the consideration.