Australian Automotive industry and policy
Discussion
First up, sorry for starting a serious thread, not particularly PH but there you are.....
So currently I am finally getting closer to getting a motor after arriving last September. I have almost got over the price differential and can almost resist looking at the PH classifieds and if I do I no longer cry. (Apart from my father just buying a 911 for 1/4 of the cost over here but I won't dwell on that, good luck to him
) The cost of second hand cars got me thinking about why they are so expensive and whats going on int eh industry over here.
The current bit of policy news is from the current oppostion party that should they come to power they would fairly drastically reduce the amount of support it gives to the domestic motor industry back down to the level of the Howard administration. Now I have not been here very long but was there a massive improvement for the industry when this cash was injected initially? Why aren't local companies spotting the trend of less powerful, lower cost vehicles and paying heed and will they suffer the same fate as the dinosaurs did if they don't adapt? Can an automtive industry with basically zero export business be viable with increasing number of lower cost vehicles pinching market share?
Also do we see a time when Australia will open the gates a little by reducing import taxes in general on cars? Is the differential on the cost of imported cars still mostly tax related?
What are peoples views on the state of play right now and does nayone see it changing in the near future? The government threw $34million bucks at Ford to save 300 jobs... which even for Aus, is not that many for a serious amount of wedge. I don't see this sort of thing materialising in anything I actually want to buy and I don't think it makes economic sense..... I would want to see some kind of plan for a peoples car for that sort of money.
What do people think, am I missing something? (I know other countries subsidise as well, for example Germany, but they have a world wide market with great prospects...).
So currently I am finally getting closer to getting a motor after arriving last September. I have almost got over the price differential and can almost resist looking at the PH classifieds and if I do I no longer cry. (Apart from my father just buying a 911 for 1/4 of the cost over here but I won't dwell on that, good luck to him
) The cost of second hand cars got me thinking about why they are so expensive and whats going on int eh industry over here.The current bit of policy news is from the current oppostion party that should they come to power they would fairly drastically reduce the amount of support it gives to the domestic motor industry back down to the level of the Howard administration. Now I have not been here very long but was there a massive improvement for the industry when this cash was injected initially? Why aren't local companies spotting the trend of less powerful, lower cost vehicles and paying heed and will they suffer the same fate as the dinosaurs did if they don't adapt? Can an automtive industry with basically zero export business be viable with increasing number of lower cost vehicles pinching market share?
Also do we see a time when Australia will open the gates a little by reducing import taxes in general on cars? Is the differential on the cost of imported cars still mostly tax related?
What are peoples views on the state of play right now and does nayone see it changing in the near future? The government threw $34million bucks at Ford to save 300 jobs... which even for Aus, is not that many for a serious amount of wedge. I don't see this sort of thing materialising in anything I actually want to buy and I don't think it makes economic sense..... I would want to see some kind of plan for a peoples car for that sort of money.
What do people think, am I missing something? (I know other countries subsidise as well, for example Germany, but they have a world wide market with great prospects...).
There may well be change soon.
The Commodore isn't the best selling car anymore (it's the Mazda 3 I believe, third is the Thailand made Hilux - which I think gets a government subsidy too).
The exchange rate means that Holdens are no longer being exported to the US as Pontiac GTO's.
The XR6/XR8 is too expensive for other countries, and the Falcon might be scrapped for some FWD/AWD Taurus "world car" thing quite soon.
It's a shame, as although I hate paying Aus prices, I'm glad that there are these bigger cars. I don't want a road full of tiny euro hatchbacks, and BMW 3 series.
The first step will be Toyota and Nissan entering the V8SC, even though they don't have a road car that matches yet. So you'll be able to get a V6 FWD car that looks like a race car. I'm sure it'll work too.
But on the other side, they are tightening up personal imports (now only allowed one every 5 years, and the date for allowance of importing older cars isn't rolling),
The Commodore isn't the best selling car anymore (it's the Mazda 3 I believe, third is the Thailand made Hilux - which I think gets a government subsidy too).
The exchange rate means that Holdens are no longer being exported to the US as Pontiac GTO's.
The XR6/XR8 is too expensive for other countries, and the Falcon might be scrapped for some FWD/AWD Taurus "world car" thing quite soon.
It's a shame, as although I hate paying Aus prices, I'm glad that there are these bigger cars. I don't want a road full of tiny euro hatchbacks, and BMW 3 series.
The first step will be Toyota and Nissan entering the V8SC, even though they don't have a road car that matches yet. So you'll be able to get a V6 FWD car that looks like a race car. I'm sure it'll work too.
But on the other side, they are tightening up personal imports (now only allowed one every 5 years, and the date for allowance of importing older cars isn't rolling),
So its a bit of a mixed up policy right now. It makes me feel I should hold off from buying the 2nd hand Boxster I have been thinking about as I am slightly worried that a change is in the making and me putting money into something that has plenty of more room for depreciation but is magically buoyed by the extortionate new prices, is asking for it. Although if nothing happens then its a bigger outlay say than at home but the depreciation remains stable.
The trouble is it probably should change a bit but whether it will and when is impossible to know. How long will they bleed money before admitting the current policy doesn't work?
On a side note there seems to be much less availability of cars 3-4 years old? Am I right in assuming this is because people tend to wait atleast this long to change because mostly people are financed up on cars? Why are second hand cars expensive here? Lack of supply?
$35k on a 10 year old Boxster is somewhat a lot of money for a car of that vintage no? (And thats the cheapest one I could find.)
The trouble is it probably should change a bit but whether it will and when is impossible to know. How long will they bleed money before admitting the current policy doesn't work?
On a side note there seems to be much less availability of cars 3-4 years old? Am I right in assuming this is because people tend to wait atleast this long to change because mostly people are financed up on cars? Why are second hand cars expensive here? Lack of supply?
$35k on a 10 year old Boxster is somewhat a lot of money for a car of that vintage no? (And thats the cheapest one I could find.)
I'm looking at something special, and am tempted to buy in the UK while on holiday, leave it for 12 months with the father in law, and then ship it over.
When you see the prices for a GTR, 355, 911 or even something silly like a Viper (which would be an awesome car here). It makes sense.
Prices for Boxters, S2000s, TTs, SLKs etc. are just scary.
I dunno what to suggest. I just can't see them doing anything just yet, to upset the unions by letting imports in cheap.
When you see the prices for a GTR, 355, 911 or even something silly like a Viper (which would be an awesome car here). It makes sense.
Prices for Boxters, S2000s, TTs, SLKs etc. are just scary.
I dunno what to suggest. I just can't see them doing anything just yet, to upset the unions by letting imports in cheap.
At this stage it's not just the unions that would be hurt by a sudden and drastic fall in car prices: it's punters. And no government is likely to implement a policy which will have a radical, sudden and negative impact on everybody's second biggest asset.
On top of that, the stated aim of the taxes on car imports may be to protect the local industry, but it has to be a tidy earner for the govt coffers, and governments have a habit of getting used to whatever income they can raise. And if there is a tax on the better off, then that is seen as a better thing than taxing the poorer folk who don't hold directorships.
On top of that, the stated aim of the taxes on car imports may be to protect the local industry, but it has to be a tidy earner for the govt coffers, and governments have a habit of getting used to whatever income they can raise. And if there is a tax on the better off, then that is seen as a better thing than taxing the poorer folk who don't hold directorships.
Edited by bikemonster on Friday 24th February 05:22
Bibbs, you'll need to remain in the U.K with the car for the full 12 months and be able to provide evidence of the fact, ie passport stamps, credit card statements etc. If not you wont be able to bring it in.
Full details on the DOTARS (or what ever they call themselves this week) website.
Edit- Damn beaten to it!
Full details on the DOTARS (or what ever they call themselves this week) website.
Edit- Damn beaten to it!
TAS1981 said:
The government threw $34million bucks at Ford to save 300 jobs... which even for Aus, is not that many for a serious amount of wedge.
I believe the justification for that was that there were 300 jobs directly saved at Ford but perhaps a few thousand more outside of Ford in the supply chain. If 2000+ people suddenly need to claim unemployment of some sort plus the government administration of those people $34mil does not actually go far for very long.Having said all that I do believe that GM Holden and Ford and the government have backed themselves in to a corner. They have gone so far with the development of their cars and the government has give so much support over the years that nobody can back out now.
I think the used car market is going to shift in a big way over the next year or two. You can now buy a lot of very well equipped entry level cars for $20-$25K on the road...Ford Focus, Mazda 3, VW Golf and many other similar class cars. These are all going to start hitting the used market in the next year or two as everyone wants new cheap cars and we will start the cycle like in the Uk with a flooded used car market. Personally when you look at what $25K gets you in a Ford Focus I think you would have to be on crack to drop $40K on a Falcodore with less equipment.
Bibbs said:
deviant said:
Personally when you look at what $25K gets you in a Ford Focus I think you would have to be on crack to drop $40K on a Falcodore with less equipment.
I must be on crack then. As why on earth would your *ever* want a Focus.At least the Aus stuff has some good points.
Need a quick auto, Falcon over Focus by default. If the ST was an auto I might have been persuaded.
My G6 was $43k and I can't think of anything that comes close for the cost.
deviant said:
Having said all that I do believe that GM Holden and Ford and the government have backed themselves in to a corner. They have gone so far with the development of their cars and the government has give so much support over the years that nobody can back out now.
Almost like they are too big to fail....hang on I have heard this before some where..... 
So the general consensus is that cars like the Boxster S for example are not going to ditch in terms of value in the near future? I suppose at some point something will change but if it does it hurts everyone...so I should not be overly concerned by dropping some hard earned on something a bit fruity....
TAS1981 said:
So the general consensus is that cars like the Boxster S for example are not going to ditch in terms of value in the near future? I suppose at some point something will change but if it does it hurts everyone...so I should not be overly concerned by dropping some hard earned on something a bit fruity....
So why not get something fruity, instead of a Boxter Gassing Station | Australia | Top of Page | What's New | My Stuff