Why are European cars so expensive in Australia?

High-end luxury cars cost more in Australia than many other places. Part of that is because we’re a long way from manufacturing centres in Europe, Japan and the Americas, because our cars are made in a less common right-hand-drive layout, and because luxury cars have a higher than usual standard specification here.

Are European cars good in Australia?

If you’re looking for a new car, you want to make sure that you’re striking a balance between budget, performance and reliability. European cars are becoming more and more popular in Australia, with their incredible build quality and design standards setting them apart from their competitors.

Why are European cars more expensive?

Labor costs in Europe aren’t cheap — especially in developed countries such as the United Kingdom and Germany, where many vehicles are built. These costs are built in to the price of vehicles, which helps keep prices high.

Why have cars become so expensive in Australia?

Vehicle Demand Most Australians prefer mid-range luxury vehicles meaning that the top-end cars such as the Lamborghini and Ferrari have a lower demand. The demand-supply rule dictates that low demand would translate to a high price. Similarly, Australia’s low demand for top-end cars leads to a higher retail price.

Why is BMW so expensive in Australia?

Market tolerance Very high import duties (which were as much as 59% in the 1980s) meant that Australians expected to pay more for cars imported from countries such as Germany – where many luxury vehicles (such as BMW and Mercedes-Benz) come from.

Why are Mercedes more expensive in Australia?

BMW and Mercedes-Benz lay the blame for Australia’s stratospheric luxury-car prices at the government’s doorstep, citing that new cars are burdened with multiple taxes – notably the luxury car tax (LCT).

What European cars are sold in Australia?

Find out what makes them different and why they continue to be the vehicle of choice for many Australians.

  • BMW. Hatchback – BMW 120i (2018)
  • Audi. Hatchback – Audi A1 (2010)
  • Volkswagen. Hatchback – Volkswagen Golf (2017)
  • Skoda. Medium Sedan – Skoda Octavia (2009)
  • Mercedes Benz. Hatchback – Mercedes Benz A200 (2012)

Are European car parts more expensive?

Belts, hoses, brake pads and rotors, as well as many other parts that are considered wear items and require periodic replacement, are more expensive for each specific European vehicle when compared to a comparable American or Asian vehicle.

Why are European cars the best?

Better Fuel Efficiency American cars simply are not as fuel-efficient as European vehicles. European vehicles are built with European gas prices in mind, which are substantially higher than American gas costs. As a result, European cars let drivers get more out of each gallon.

Are European cars expensive to repair?

Due to their construction and how far away from their home country they are, European vehicles tend to be far more expensive to fix, or even just service4.

Why are Audis so expensive in Australia?

A smaller demand equates to smaller shipment numbers and less competition at the top end of the market, meaning those who are selling these vehicles are able to do so at a premium. Demand also affects mid-range luxury cars such as Audi, Mercedes-Benz and BMW – just not to the same extent as top-end vehicles.