Why are supercars expensive in Australia?

Why are supercars expensive in Australia?

There’s no doubt about it: Australians do pay more for luxury vehicles. Thanks to luxury car tax, perceived market tolerance, lower demand and the customisation of cars for Australian conditions, we are certainly charged a premium price that easily exceeds that imposed on countries such as the US and UK.

Why is Mustang so expensive in Australia?

Ford has blamed US currency pressure and “market demand” behind the $2500 price rise on its hero car that’s sold out for a year. Ford Mustang fans will need to pay more for their hero car in Australia — and they only have themselves to blame.

Why are new cars so expensive in Australia?

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Production issues and increased prices Despite stock shortages, the demand for new and used cars remains strong. Figures have shown more than 100,000 new vehicles were sold in Australia in May 2021 — an increase of 68 per cent compared to the same month last year.

Why does Australia still have a luxury car tax?

The basics The Luxury Car Tax (LCT) is paid by dealerships for importing and supplying cars over a certain value. The problem is, in the years since the LCT was introduced, car buyers demand more from their cars and thanks to increased buying power, Australians want to buy bigger, better cars.

Why are 4×4 so expensive?

4×4 vehicles are expensive because they are produced and sold at low volume, which means increased production costs. 4×4 trucks and SUVs are also sold as luxury vehicles, and are usually built to higher spec than your standard everyday car.

Do they sell mustangs in Australia?

Australia/ New Zealand The Mustang is popular in Australia, which is no stranger to big V8 cars. In fact, a limited edition supercharged Mustang R-Spec was released by Ford of Australia in 2019. Australia is the farthest place you can be on Earth from Dearborn, Michigan, but you can still buy a Mustang there.

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How many Mustangs are in Australia?

So far this year, 2194 Mustangs have been sold in Australia, giving it a 53.2 per cent of the sub-$80K sports car segment.

Will Australia get rid of luxury car tax?

The price the Australian Government may have to pay is the gradual decline of the 33 per cent Luxury Car Tax and some concessions on alcohol tax. As it stands today (2020-2021), LCT comes into affect at the rate of 33 per cent on cars that cost more than $68,740 and use more than 7.0L/100km of fuel.

Why are supercars so expensive to make?

Because the cars are hand-built, they take longer to build, increasing the cost to the manufacturer. Limited production numbers. Supercars are usually produced in very low numbers. Indeed, what Ford can churn out in one day can be more than several years of a supercar production run.

Are used cars more expensive in Australia than in the US?

There is also demand for used cars as many Australians would rather invest in real estate or an overseas holiday than a new car every few years. The new car depreciation over the first three years is a killer. They aren’t that different, in general. Cheap cars are not much more expensive than in the US. But “luxury cars” get a 45\% punitive tax.

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Why buy a used car in Australia?

Used cars maintain their value because we don’t put salt on our roads so cars don’t rust from the bottom up the way they seem to in Europe and America. There is also demand for used cars as many Australians would rather invest in real estate or an overseas holiday than a new car every few years.

Why are new cars so expensive in the US?

Traditionally new cars were more expensive here due to tariffs and taxes designed to protect the local automotive industry. Also the cost of shipping relatively small numbers of cars.