Why Free Trade deals will make some cars cheaper and not others
The import tariff on Japanese and South Korean cars will be downright eliminated from January fifteen – bringing potential price cuts to almost half of all cars imported into Australia.
However, the industry has warned buyers not to expect massive savings – cuts will be most likely inbetween $250 and $1000 – because the five per cent tariff was on the landed cost of the car, not the higher recommended retail price.
Minister for Trade and Investment Andrew Robb claims there will be savings of up to $7630 on some Toyotas as ‘an example of the real influence that families will see from these agreements . for Toyota’s biggest-selling models”.
Don’t get too excited. Toyota’s biggest-selling model, the Corolla, drops by inbetween $500 and $1050.
Don’t get too excited. Toyota’s biggest-selling model, the Corolla, drops by inbetween $500 and $1050.
The $7630 applies to the Prado Kakadu, which drops from $92,120 to $84,490. But only part of the price cut is due to the five per cent duty reduction.
A Toyota spokesman says ‘in some cases we’ve passed on more than the duty saving”.
Japanese brands Mazda and Subaru also trimmed prices but don’t expect similar savings on South Korean-made vehicles sold by Holden, Kia or Hyundai, as all three have resisted moves to go after suit.
Kia spokesman Kevin Hepworth says the company will scrap price increases it had planned for January and look at adding features. ‘As fresh models arrive they may have extra equipment,” he says.
Hyundai will introduce extra equipment but the currency gap inbetween the Korean won and the yen will make it more difficult to introduce significant savings. So far, Holden has also resisted price cuts on the Korean-made Captiva, Barina, Cruze wagon and Malibu.
The Japanese Free Trade Agreement due to come into effect on January fifteen goes after the deal with South Korea from December 15.
The deals are estimated to affect about 460,000 cars this year;. Toyota alone expects the switches will make about 100,000 of its cars cheaper.
‘Traditionally Toyota would have implemented the price reductions at the same time as the cuts to import duty embark to apply,” says Toyota sales and marketing chief Tony Cramb.
‘Instead, with the support of our dealers, Toyota has brought forward these price cuts to the begin of the year.” Three low-volume cars also will build up extra equipment.
Some cars with Japanese and South Korean badges will have no fresh savings because they are made in countries such as Thailand (which signed free trade agreements with Australia in 2005), the US (agreements signed in 2010) or India (which has no agreement with Australia).
Price cuts are expected on the Japanese-built Toyota Yaris, Prius and Corolla hatch, among other models. But prices will remain constant for the Corolla sedan and HiLux built from Thailand and the Kluger SUV manufactured in the US because of the existing deals.
Mazda has trimmed prices on all Mazda3, Mazda6, CX-5 and CX-9 vehicles, from $268 to $963 on vehicles which range in price from $20,000 to $50,000. But its cheapest car, the Mazda2, and the BT-50 ute will not get price cuts as they come from Thailand.
Likewise most Hondas sold in Australia today come from Thailand. Meantime Subaru cut prices of some models by inbetween $500 and $1000. The car industry has warned buyers that exchange rate fluctuations have had a fatter influence on prices than the tariff.
‘The Australian dollar has moved by sixty per cent over the past ten years but car prices have remained relatively stable,” says one industry insider.’Car makers rail the currency wave, plus you have the influence of the devalued Japanese yen. That has a thicker influence on (pricing) than the removal of the tariff.”
Why Free Trade deals will make some cars cheaper and not others – Car News, CarsGuide
Why Free Trade deals will make some cars cheaper and not others
The import tariff on Japanese and South Korean cars will be entirely liquidated from January fifteen – bringing potential price cuts to almost half of all cars imported into Australia.
However, the industry has warned buyers not to expect massive savings – cuts will be most likely inbetween $250 and $1000 – because the five per cent tariff was on the landed cost of the car, not the higher recommended retail price.
Minister for Trade and Investment Andrew Robb claims there will be savings of up to $7630 on some Toyotas as ‘an example of the real influence that families will see from these agreements . for Toyota’s biggest-selling models”.
Don’t get too excited. Toyota’s biggest-selling model, the Corolla, drops by inbetween $500 and $1050.
Don’t get too excited. Toyota’s biggest-selling model, the Corolla, drops by inbetween $500 and $1050.
The $7630 applies to the Prado Kakadu, which drops from $92,120 to $84,490. But only part of the price cut is due to the five per cent duty reduction.
A Toyota spokesman says ‘in some cases we’ve passed on more than the duty saving”.
Japanese brands Mazda and Subaru also trimmed prices but don’t expect similar savings on South Korean-made vehicles sold by Holden, Kia or Hyundai, as all three have resisted moves to go after suit.
Kia spokesman Kevin Hepworth says the company will scrap price increases it had planned for January and look at adding features. ‘As fresh models arrive they may have extra equipment,” he says.
Hyundai will introduce extra equipment but the currency gap inbetween the Korean won and the yen will make it more difficult to introduce significant savings. So far, Holden has also resisted price cuts on the Korean-made Captiva, Barina, Cruze wagon and Malibu.
The Japanese Free Trade Agreement due to come into effect on January fifteen goes after the deal with South Korea from December 15.
The deals are estimated to affect about 460,000 cars this year;. Toyota alone expects the switches will make about 100,000 of its cars cheaper.
‘Traditionally Toyota would have implemented the price reductions at the same time as the cuts to import duty embark to apply,” says Toyota sales and marketing chief Tony Cramb.
‘Instead, with the support of our dealers, Toyota has brought forward these price cuts to the embark of the year.” Three low-volume cars also will build up extra equipment.
Some cars with Japanese and South Korean badges will have no fresh savings because they are made in countries such as Thailand (which signed free trade agreements with Australia in 2005), the US (agreements signed in 2010) or India (which has no agreement with Australia).
Price cuts are expected on the Japanese-built Toyota Yaris, Prius and Corolla hatch, among other models. But prices will remain stable for the Corolla sedan and HiLux built from Thailand and the Kluger SUV manufactured in the US because of the existing deals.
Mazda has trimmed prices on all Mazda3, Mazda6, CX-5 and CX-9 vehicles, from $268 to $963 on vehicles which range in price from $20,000 to $50,000. But its cheapest car, the Mazda2, and the BT-50 ute will not get price cuts as they come from Thailand.
Likewise most Hondas sold in Australia today come from Thailand. Meantime Subaru cut prices of some models by inbetween $500 and $1000. The car industry has warned buyers that exchange rate fluctuations have had a thicker influence on prices than the tariff.
‘The Australian dollar has moved by sixty per cent over the past ten years but car prices have remained relatively stable,” says one industry insider.’Car makers rail the currency wave, plus you have the influence of the devalued Japanese yen. That has a thicker influence on (pricing) than the removal of the tariff.”
Why Free Trade deals will make some cars cheaper and not others – Car News, CarsGuide
Why Free Trade deals will make some cars cheaper and not others
The import tariff on Japanese and South Korean cars will be entirely liquidated from January fifteen – bringing potential price cuts to almost half of all cars imported into Australia.
However, the industry has warned buyers not to expect massive savings – cuts will be most likely inbetween $250 and $1000 – because the five per cent tariff was on the landed cost of the car, not the higher recommended retail price.
Minister for Trade and Investment Andrew Robb claims there will be savings of up to $7630 on some Toyotas as ‘an example of the real influence that families will see from these agreements . for Toyota’s biggest-selling models”.
Don’t get too excited. Toyota’s biggest-selling model, the Corolla, drops by inbetween $500 and $1050.
Don’t get too excited. Toyota’s biggest-selling model, the Corolla, drops by inbetween $500 and $1050.
The $7630 applies to the Prado Kakadu, which drops from $92,120 to $84,490. But only part of the price cut is due to the five per cent duty reduction.
A Toyota spokesman says ‘in some cases we’ve passed on more than the duty saving”.
Japanese brands Mazda and Subaru also trimmed prices but don’t expect similar savings on South Korean-made vehicles sold by Holden, Kia or Hyundai, as all three have resisted moves to go after suit.
Kia spokesman Kevin Hepworth says the company will scrap price increases it had planned for January and look at adding features. ‘As fresh models arrive they may have extra equipment,” he says.
Hyundai will introduce extra equipment but the currency gap inbetween the Korean won and the yen will make it more difficult to introduce significant savings. So far, Holden has also resisted price cuts on the Korean-made Captiva, Barina, Cruze wagon and Malibu.
The Japanese Free Trade Agreement due to come into effect on January fifteen goes after the deal with South Korea from December 15.
The deals are estimated to affect about 460,000 cars this year;. Toyota alone expects the switches will make about 100,000 of its cars cheaper.
‘Traditionally Toyota would have implemented the price reductions at the same time as the cuts to import duty commence to apply,” says Toyota sales and marketing chief Tony Cramb.
‘Instead, with the support of our dealers, Toyota has brought forward these price cuts to the commence of the year.” Three low-volume cars also will build up extra equipment.
Some cars with Japanese and South Korean badges will have no fresh savings because they are made in countries such as Thailand (which signed free trade agreements with Australia in 2005), the US (agreements signed in 2010) or India (which has no agreement with Australia).
Price cuts are expected on the Japanese-built Toyota Yaris, Prius and Corolla hatch, among other models. But prices will remain constant for the Corolla sedan and HiLux built from Thailand and the Kluger SUV manufactured in the US because of the existing deals.
Mazda has trimmed prices on all Mazda3, Mazda6, CX-5 and CX-9 vehicles, from $268 to $963 on vehicles which range in price from $20,000 to $50,000. But its cheapest car, the Mazda2, and the BT-50 ute will not get price cuts as they come from Thailand.
Likewise most Hondas sold in Australia today come from Thailand. Meantime Subaru cut prices of some models by inbetween $500 and $1000. The car industry has warned buyers that exchange rate fluctuations have had a fatter influence on prices than the tariff.
‘The Australian dollar has moved by sixty per cent over the past ten years but car prices have remained relatively stable,” says one industry insider.’Car makers rail the currency wave, plus you have the influence of the devalued Japanese yen. That has a thicker influence on (pricing) than the removal of the tariff.”