Yep,look at how much some new Fiat 500's have been dropped since Chrysler(I think)took over marketing them.
100% correct Take the UK retail price of a 458, subtract their VAT (22%), then convert to Aussie dollars Then add 5% duty, 10 % GST and LCT, as well as say 5K for freight, and the number is about $200K less than the current Aussie retail price. It's a valid comparison as it's comparing retail prices, and therefore includes dealer and distributor margins. BTW Aussie and UK cars are technically essentially the same, so no extra cost 'ex factory" The problem is all the luxury car makers do it, and the reason why they can do it is because parallel imports are not possible when a vehicle is already imported using full volume compliance. Remove that anomaly and the price would drop substantially through market pressures. (Although some would still pay extra for "aussie delivery") M
I was told by Euromarque that all new Ferraris are shipped to Aus by air. Don't know what the cost might be, but suspect we're talking about tens of $k
don't think air freight is only double the price of the sea freight, would've thought it's at least $20-30k. And GST and LCT apply to the total vehicle price, including freight and insurance. The margin looks more like $120-150k in my opinion
458 UK On road 178 941 pounds (includes 20% VAT) Price ex VAT 149 117 pounds = $219 289 AUD Freight $30 000 AUD (LOL) Dutiable Value $249 248 Duty (5%) $12 464 Subtotal inc duty $261 175 GST $26 117 Subtotal inc duty/ freight/gst $287 929 LCT taxable amount calculated as ($287 929 -57 800 ) = 230 129 LCT on $230 129 = $76 702 Allow $ 2600 for customs paperwork, Aquis inspection Total landed cost, ex rego, stamp duty or dealer delivery $369 631 Australian 458 list price $526 950 Price difference is 158K with an assumed 30K airfreight cost With a freight allowance of 5k, the price difference is 196k. (The reason why I've allowed only 5k freight is because the UK retail price already includes a delivery component from Italy, which would not be needed for a car imported to Australia from Italy.) I've calculated the GST on the import price, as this is what you pay when you import for yourself as you are the end user. The breakup of numbers is going to be different for a car manufacturer, (as their cost is less for the car, and hence duty is lower, they get volume deals on freight etc and charge GST on the sell price ) but the overall numbers shouldn't change much. M
multiply it by 90 or so cars they sold last year - they've made $14 mil before outgoings (which I assume are not small - retail space in Australia is among the most expensive in the world, and so is labour). In the end it's a healthy but not outrageous profit margin.
No, you don't understand. The price I used was the RETAIL price in the UK, which already includes the dealer margin and the distributor margin. The 195k is the EXTRA PROFIT they make in Australia, on top of the dealer & distributor margin ( I am assuming the margins are similar in both countries, and why wouldnt they be ?) So the 14 Million is the "extra" that presumably either the distributor or Ferrari made. Thats a nice little earner, on top of the normal "profits" The dealers don't see any of it. M
Retail costs are all covered by dealers... not the importer... over the seven years of the distributorship Ateco have sold 1100 cars... with that "little extra" adding up to $20M per year... as Mike says - bit more than "healthy"
yes, as an importer its a good gig, unless the economy turns sour and the factory tell you to take cars......not so the dealer, its a tough one even when the economy is booming, that is why there are very few, if any, stand alone ferrari dealers that are independently owned. most have a more profitable side line, alfa, land rover, citroen etc to prop up the ferrari side! or they just throw it in the too hard basket, like lance dixon did in victoria and go back to making money.
This is worth almost as much as mine. 1976 FERRARI 308 GTB GT Coupe Cars For Sale in NSW - carsales.com.au
interesting nonsensical diatribe from a troglodyte Ferrari promises to cut delivery times ? Car Reviews, News & Advice - carsales.com.au
just get herbert appleroth to sell your car if you sell, offer him a 30% lick and you'll still net $200K
Risible, he insults the intelligence of his customers, but perhaps he has assessed them carefully and truly believes they're dumb enough for a pitch that a new Ferrari is an investment? Of course it's not just a car, but a "lifestyle"
GD's 330 coming back to QLD Simon. Sold in 2 weeks for the asking price. Let's see, he had more than 10 years of fun and sold it for double what he paid for it, what's not to love about OHOS V12 Ferraris? (and it will double again in the next 10 years...)
the section that lost me was the justification of the price increase over its uk counterpart through the higher specification of the australian delivered car.
