Import Opponents Say Oz Cars Already Among Least Expensive

New cars are more affordable than ever and many comparable cars are cheaper in Australia than in other major right-hand-drive markets such as Japan, the U.K. and New Zealand, an industry group says.

The Federal Chamber of Automotive Industries, campaigning against proposals to allow the uncontrolled import of used cars as a way to lower prices, says this includes comparable cars from Toyota, GM Holden, Ford and Mercedes-Benz.

The FCAI analysis found that a Holden Captiva LT that sells for A$36,490 ($31,519) in Australia costs more than A$50,000 ($43,190) in the U.K., while the Mazda6 Sport sedan selling for A$33,460 ($28,903) in Australia costs more than A$43,200 ($37,310) in the U.K.

A Mercedes-Benz A180 priced at more than A$42,400 ($36,620) in the U.K. sells for A$35,600 ($30,748) in Australia.

At the same time, FCAI says figures compiled by Commonwealth Securities shows car affordability in Australia is at its best level ever.

CommSec says someone earning the average wage has to work only for about 26 weeks to be able to purchase a new Ford Falcon XT sedan, compared with 30 weeks just a couple of years ago.

CEO Tony Weber says the FCAI analysis of vehicles made for the Australian market against those in other RHD markets shows while specification levels can differ significantly when comparing like-for-like vehicles, Australian new-car prices are highly competitive.

“There has been plenty of misinformation about the cost of new cars in Australia, with some commentators arguing for an (unrestricted) approach to the import of new and used cars as a way of supposedly lowering prices,” Weber says in a statement.

“In fact, as our analysis confirms, Australia has one of the most competitive right-hand-drive markets in the world and this is reflected in the price of new cars in this country.”

Weber says Australian consumers can be assured cars made for Australian conditions and safety specifications will cope with the climate, lifestyle and roads.

This includes having appropriate engine and transmission cooling systems to cope with Australia’s hot climate, towing requirements and fuel quality. It also includes having specifically calibrated convenience items such as navigation, air-conditioning and infotainment systems.

Weber says the high level of competition in the Australian market also means manufacturers are continuously working to improve safety, security and environmental features.

“This competition means that Australians are getting world-class cars, built for Australian conditions, at globally competitive prices,” he says.

The FCAI is opposed to any move by the federal government to compromise existing safety and specification criteria by further relaxing standards to allow greater access for the personal importation of cars.

Weber says changes being considered by the government would transfer the risk of buying a car from dealers to consumers, many of whom do not have access to all the necessary information needed to compare car specifications, safety regulations and price.

“We believe that allowing the personal importation of motor vehicles into Australia will have a significant negative impact on consumers and to road users more generally,” he says. “Cars made in the same factory may look identical on the outside but will have very different specifications under the bonnet.”

Weber says personal imports also would be outside the established brand network and its ability to deliver service, support and warranty assistance.