So glad the "Luxury Car Tax" is still protecting the Australian car industry. We need to keep that tax to protect the.... the... Australian car industry? What are we protecting again?
Funny how all these companies could afford to make such reductions in price and still stay profitable. So sick of companies screwing the consumer constantly.
To many people are happy to pay a high price because it’s the price of the vehicle that places it on the imaginary status rankings. The so called legacy car brands have engineered their products to fall apart and when this is coupled to their terrible quality control no one in their right mind would hand over their hard earned to them.
Definition of capitalism is to make something for as cheap as possible and sell for as high as possible. It's what every business is supposed to be doing.
Yeah I feel like this video isn’t admitting that we are self-correcting from an overpriced market that existed until manufacturing died, a whole 10 years ago now … very slow but we are finally repairing decades of damage
Australia is like the most expensive country in the world to buy cars, whereas America is one of the cheapest. Australia's indirect taxing on everything just inhibits so much here
The legacy brands have screwed us over for decades. Now that new competition is around the corner, we can see exactly how much we’ve screwed over in actual dollars. Screw them ! When it comes time for replacement of my car, they won’t be getting a look in from me.
Ok third generation dealer here. A lot of bad info here. Prices aren’t actually any cheaper than what they were before all the covid crap. Prices were high back then too you just NEVER got full retail for a new car unless you had a unicorn that was in demand. I’ve been in industry my whole life and Australia IS NOT a “testing ground” for other markets. It’s essentially a dumping ground that equates to manufacturers 1% of sales (except Mazda, we’re like 10% of their market and no one can work out why) they do not care what Australia does or thinks. Why do you think there was no diesel option for the Y62 patrol??? Prices are just going back to normal because the supply is returning to normal and everyone’s mentality here in the new car market is market share not profitability. We would literally average a few hundred bucks profit a unit every month and that’s including holdback (a manufacturers bonus for hitting goals basically).
@@Coopsoldman exactly. I’ve been in the automotive game my whole life. And this is the most accurate statement I’ve heard. I priced a new car recently for my mother and the dealer quoted full retail and went on to tell me they can’t discount the manufactured won’t budge anymore. And I’m like what about the 12k price increase from 3 years ago. He’s like they have been bigger since I started. When asked he said 2 years. I literally laughed and said mate I’ve been in this industry my whole Life. There isn’t one part of this conversation that wasn’t fiction. There was no way I’m buying from such a typical car salesman.
NO tariffs - have you forgotten Govt money making LCT which was introduced because of the ailing car industry. Now just a cash cow that no Govt wants to get rid of.
@@GDM22howard introduced it to “boost” manufacturing in australia. then the conservative government shut down manufacturing and both governments kept the tax.
have u heard the phrase an eye for an eye, an ear for an ear? China has huge tariffs on imported cars and force foreign automaker into partnerships, joint venture and local production. When China starts producing and exporting cars to those countries, you expect it to go barrier and restriction free? Only China gets a one-free-way? What a naive thinking. China got the trade war and trade restriction it deserved. If china doesn't like it, either drop the tariffs on foreign cars or go do partnership, joint venture and local production like it forced on foreign cars.
Can't agree more. You get to choose whatever car make/model you like. Hate Chinese cars? Absolutely fine! But if you could pay heaps less for a Japanese, Korean/European vehicle at a lower price due to bloody price war, why the hell would you say yes to a ridiculous price tag??
@@DeandzzzzzzI’d just be sensible and buy a reputable used Japanese car that is tried, tested, and proven to last. There’s a reason this Chinese stuff is cheap, look at MG reviews…
@@izzy031096 I never imply that you must buy Chinese cars. Your money your decision to make on what car to buy. Doesn't matter to me. More competition is ALWAYS beneficial for buyers like you and me.
Car companies and dealers still riding that covid high suv demand, I'm really sick of suv's costing and arm and a leg for average products, give us sedans...
It's getting harder and harder to drive anything else, with the surrounding SUVs making visability a huge issue, and the ultra-heavy EVs rapidly converting even inner-city roads into the kokoda-track.
Being the 2nd most expensive Country to buy a property after Hong Kong also gives Car Companies the impression that there are 26 Million Millionaires living on this Island 😂
Are you kidding? Now Australia has more variety of available vehicles for our customers. Australia is the defacto market testing ground. Yes indeed. We are much better off without car manufacturers. The Tesla prices quoted are as shown in USdollars. However thats BS as our Teslas are sourced from China not the USA, which reduces the purchase price considerably. Made in America is expensive.
Our market is just a dumping ground for shitboxes. Usually superseded before they reach our shores, don't have adequate spare parts inventories, warranty claims are a nightmare and are mainly a swathe of vanilla, gutless, unreliable, throwaway plastic tubs on wheels that these bumbling manufacturers want stupid money for. Prices have gone up 50% since Aussie manufacturers shut up shop. You can blame covid but they were already creeping up beforehand. What's the point of variety when all you're doing is choosing between a lemon or a piece of crap?
Well, the price war hasn't reached the popular ute and 4x4 market yet - or to be precise, the legacy player had no reason to lower their prices yet. Maybe the BYD Shark will change this.
BYD Shark isn't exactly cheap either though. The RADAR RD6 is actually the cheapest EV pickup coming out of China, but for whatever reason Geely doesn't seem in any hurry to export it in high volumes. I would think the RD6 would do extremely well in Australia. Might be the closest thing you can get to those classic Holden/Ford sedan based utes, except with 2 additional doors.
I doubt what any crappy chinese company does will ever really impact what Toyota or Nissan produce and sell. In terms of quality and capability, they are chalk and cheese.
@@izzy031096 YOU can go ahead and doubt whether the "crappy chinese company" affects Toyota, but Toyota certainly doesn't doubt it. You might want to look up the Toyota bZ3, which is Toyota's best effort so far at making a BEV ... because it uses a complete BYD powertrain underneath. Oh you might say Toyota is crap at making pure EVs, that's why they had to source some BYD stuff for their relatively low volume EV models. But it is all but official now that the next generation Toyota plug-in HYBRIDS will now also use BYD's newest DM-i PHEV tech. I mean that's just crazy right? Everyone knows Toyota is the grandpapy of hybrid tech, and have always led in this field. How could they be paying BYD for such foundational tech in their own cars? Well most people just think Toyota is the inventor hybrid tech, but other companies have pioneered this tech as well. In fact BYD is actually the first company to mass produce a PHEV for sale, and now they are on the 5.0 generation of their plug=in drivetrain, and their newly launched 5.0 DM-i platform is so good even Toyota will be sourcing it for their own cars.
It's even cheaper to buy a car in NZ than AU. Just look at the price of Kia. An EV9 Earth spec in AU would cost 120k and same spec in NZ would only cost 90k.
Long warranties are sneaky. They lock you in for 7 to 10 years, depending on the manufacturer, to their maintenance cost. They may have lower profit from a sale, but get you for the next 10 years on maintenance costs.
When I was buying my first car I wanted something not too expensive and reliable so I went to have a look at Toyota, maybe a rav 4 or kluger, the toyota dealership just look as if thet have the sentence "I am Toyota, I'm going to rip you off" on their face so in that sense more competition is absolutely needed here
Buy a used one with a few years of testing done to truly understand what goes wrong and how reliable they are. You’ll experience bugger all depreciation and will spend half as much.
I think you entirely missed the point of what blew his mind.. Despite having just 1/10th the sales, Australia has more car brands than the USA and with more to come..
@@firstprib7742 haha no 😝 he spent the entire first minute contrasting the size of the markets with number of car brands each market has, it was all in the context of that one point.
Just spent a week in a new vehicle holding yard in NSW for work. It’s the size of a small suburb, and at record levels of cars because there’s so much slow moving stock. It’s very apparent that the Chinese brands are being very heavily pushed in the marketplace. In a few years time Australia will mostly be Chinese brands if the trend continues.
Let's take it for what it is. Still one of the most diverse and AFFORDABLE markets in the western world. One example, VW's have been cheaper here than in Germany for ever.
Those tiny volumes will not allow for parts support or dealer training. So good luck if something goes wrong with one of the Chinese wonders. And in the USA EVs have been shown to have many more problems than most ICE models. So enjoy waiting weeks to months to have your car fixed.
Tesla price of $55,386 is incorrect, this price is indicated with an estimated 5-Year fuel saving, the actual price driveaway is AU$60,868 I don't understand how you can advertise a price that's not actually the price !!!
@@wiiagzia9450 That's not what I was referring to, if you go to Tesla website the advertised drive away price is $55,386 with an asterix, the actual price at the bottom of the page is $60,868, Tesla advertise the car as costing $55,386, this figure says considering a 5 year fuel saving, so the price of the car drive-away or before on-road is considerably more than advertised on their website because they are playing with the numbers.
Its going to be harder to buy a brand with a reputation, used car prices will turn to rubbish. The market will be ruined by being flooded with sub par brands.
I ordered a 2024 Transit Custom Sport, dual cab in van, back in February, due to arrive late November/ early December. I now feel like I should re-consider given some of the new options on the market and the deals that are currently available.
Bought a 2000 Magna for $3000 11yrs ago. Maintain it myself and runs well. I’ll let other people take one for the team for another 5yrs then feed it to a car crusher.
@@andy_mac1 I’ll take my chances. Driving 5000km a year. I’m rarely on the road. I catch the train when possible. I bought a house 10mins from the airport for FIFO job. There are more ways to reduce your probability of death in a motor vehicle accident than borrows a lot of money for the expensive to buy, insure and repair liabilities new cars are.
Having lived in Shanghai the past 3 years, I can say without any hesitation that China EV cars are insanely good and affordable. I'm glad Australia won't put 100%-200% tariffs on them unlike European countries and America. The more competition in the market, the better for the consumer.
When you say "closed", do you mean "not-moronic"? Australia is rapidly becoming a stone-age country. We not even capable of refining (most of) our own ore into metal anymore.
Best car news video (so far) of 2024, enjoyed this a lot. Just got a MG ZST excite, I was going for MG HS, your review on the ZST 1.3 turbo convinced me to take a look. You were right about the 1.3 Turbo and matched gearbox in the MG ZS, its a decent ride for $30K especially with a 10 YR warranty. Keep it coming man, love your videos!
A quick check of population stats between Australia and America, 26 mill vs 341 mill approx 12.5 times more, your calc of 15,385 vs 224,242 is approx 14.5 times more…..what is so “mind blowing” about that?
I find it mind boggling that America is set to buy 14 million new cars in 2024 alone given their population of 341 million in 2024 or the new car sales being 4.1% of their population and in Australia that is almost one new car in 26. That is a lot of demand on the earths reaources to make new cars. I already own a 2013 VF sv6 Commodore with 206,000km on the clock with zero issues. The car has been that good that at this age and mileage it still behaves like a new car and does not have all the silly nonsense autoomous driving aids with enough useful technoly such as vocie assisted dialling and sat nav and yet 11 years on everything still works great. I would argue maintaining this car as well using premium fuel with frugal sriving habits is the greener way to go.
Expect your car to require a lot of parts replacements soon. You are already beyond the expected life the car was designed for. Every car I have owned has crapped itself in the 210,000km to 250,000km range.
I first met John Cadogan in Sydney 4 years ago. We got to talking about cars and got on very well. We met for coffee that evening. We went for a walk in the park, talked about the car industry, held hands and watched the sunset. John is an amazing guy and I will never forget that day.
Hey guys, can look look into seeing if the BYD Bao 5 is going to come to Australia? I think that if China really targeted the Australian market, they could easily take the lions share of sales. I think that the BYD Shark will be a big seller once people figure out what it is.
they have already figured out what it is, chinese, they’ve never made a quality product always cheap nasty disposable junk, until that changes( it won’t) they will struggle.
One of the best, randomly played videos I’ve watched in a while - self-proclaimed economist here. What’s your opinion of how this will impact the used car market?
This brand per consumer figures have always interested me as a mechanic. Spare a thought for your local mechanic in Australia having to work across all these brands! Needs a lot more skill than US mechanics.
Many companies here in Australia don’t honour safety recalls as they do in the USA and Europe. Many have faults here but aren’t covered by recalls so we pay more to repair cars we should have repaired for free. Example: Hyundai has recalled vehicles built in 2015, 2016 in the USA, Canada and Europe due to door failures where they cannot be opened from inside or out. Due to being a safety issue, they’re recalled except in Australia! Why? Too small a market and they don’t care. Do a video on these type of issues and comparisons.
For me, who wants to buy a truck or ute for work (yes, two doors, no baby seat, no carpet) this is not good news. Because ute/truck prices aren’t coming down, they’re going up. Manufacturers are adding on bling and passing on the cost. “Buy the base model” I hear you say. Well I would if it still had the towing and load carrying capacity.
How are Ford dealers for example going, when they seem to be selling nothing more that expensive pickups, what has happened to their large small car lineup, they seem to have nothing?
Once my 2007 Hyundai Elantra dies I honestly have no idea what new car I would buy (if at all). The value proposition of owning a new car which will depreciate so much is a real turn off to me. Long live the cheap facebook marketplace used car deals ahaha
I’m no car expert, but I’m not aware of any models being released in Oz before other bigger markets. I always thought we got the dregs well after models have been on sale in the northern hemisphere for a year or two.
I heard about a new ev coming to market next year, the Geely E5. It’s an SUV with 2 variants, a $16,000 model with 400km range and $20,000 model with 500km range. I wonder how the rest of the car manufacturers will react to that
47k atto 3 including on road cost saves you tons of money in the long run than a 47k CHR hybrid from toyota with $2 per litre petrol price. will never go back to ice cars
As a person considering an EV, does the 10 y warranty include the battery? In my understanding the EV has no oils / belts / filters to change, so the warranty is a bit limited?
Question: generally speaking this would only add to the fact that EV’s look like they would depreciate a lot faster than ICEs? Considering the federal government is allowing leases on EV’s to be 100% tax deductible, there’s almost no reason to buy one yourself is there? Seems like it minimises risk to me. Assuming you can access said leases which not everyone can.
Went to buy a used car here and quickly changed my mind when I saw you could get a brand new car for 15k more. Gonna wait till start of next year and get myself something nice 😊
I've been thinking about replacing my town car with an EV but there are so many brands about to enter the market, plus heavy discounting on existing brands that I'm now waiting to see how it all shakes out before making my move. We're about to be overwhelmed with choice and value.
Jeep dropping $28k off the Grand Cherokee shoe the stupid markup manufacturers have, Ford could drop $20k on the Ranger and still turn a profit but as consumers we are stupid and a hell of a lot buyers just think a named brand and a high price means quality when it’s not necessarily true.
Australia is winning, moment of thruth, perfect zero tariff testing ground for Chinese, American, European brands. Capitalist survival of the fittest at best ! Lucky country got even luckier !
??? All of these Chinese cars are directly subsidised or even out right owned by the CCP, some production vehicles are getting Upto $19k USD each. That's not free market, but your right it is good for the average consumer who doesn't service their cars.
I'm not sure why people are so upset about car pricing: there are just so many options if you don't like the price. Unlike, say, food and electricity. Electric cars aren't selling because most who want one have one, so the potential market is now declining as more brands enter the market. And there's that recession the RBA has been trying to bring on.
The issue is a lot of these products position themselves at basic necessity prices and cannot deliver a worthy product even by the lowest of standards, but lure in exclusively the people that can’t afford their major and imminent issues, this isn’t an Aston Martin for Sunday drives
Agree with everything you said. I also add that Australia is also used as an OFF ROAD credible testing ground. If it does well here, it is indestructible. Suzuki used our local Suzuki 4wd Club of Victoria in past advertising.
It's pretty easy for car companies to come and go. Competition can be a good thing but if you buy the wrong manufacturer it probably (definitely) won't be. Also the government over regulating EVs basically denying freedom of consumer choice is fraught with danger as a turbo loving enthusiast. You can talk enthusiastically as much as you won't but not everyone shares the same joy as an automotive journalist.
I wasn't aware that Australia has a car industry. What we have is a bunch of Dealers (sellers) and resellers. We have so many brands here because we have every climaate found on the planet and are used as a testbet by the foreign manufacturers.
It's a win win for public. Best part is unlike American strategy where big companies eat smaller companies and create monopoly, they can't buy of Asian car manufacturers.
Bonfire of vanities, higher end models and EVs are attracting high discounts. However at the bottom end of the market prices are flat. Wait until we get our next interest rate raise I think you will see another round of savage discounting on sticker prices.
Problem is most cars being discounted are ev's which is the government pushing their eco garbage on us, i wouldn't take one if they were free. Im also pretty sure there is a new suv car tax coming next year which is primarily aimed at petrol and diesel vehicles, so essentially cars that people like and want to buy.
The reason is Australia has no car industries, so there is absolutely no reason to put tariffs on Chinese brands. Brands do want to get into the US or Canada or Europe, but the US tariffs is 100% on Chinese cars, European one whatever it is (it has been changing) is actually not that bad.
10 year warranties just match tye consumer law regarding reasonable durability of 150,000km or 10 years. It also matches the regulatory requirement for local parta supplies for new vehicles for 10 years.
Is a tidal wave of 'race to the bottom' priced Chinese EV's really a good thing for consumers? I personally couldn't think of anything worse or more terrifying.
It's not a car market anymore, it's a tech market. They're shifting and moving like phones, TVs and laptops once did. It's a fun ride, can't wait to see where it takes us.
we can't compare US and Australia. US has many urban center and is logistic difficult to build a network. Australia meanwhile has few cities and most cities are near the coast which mean you can ship the car around far more cheaper than hiring trucker to distribute them to each and every cities (also US has a stupid law that prevent non american from shipping stuff between 2 port so most shipping companies don't even want to ship in america). so while Australia may appear ot be a "small" market, that's why it is attractive, it also mean "small" cost.
Meanwhile i am still driving my 2000 Mitsubishi Verada Xi which is still a beautiful car to drive, dirt cheap to fix and very comfortable and practical. Zero interest in buying any new car.
People always laugh at me for dailying a 4.4 TDV8 L322 Range Rover because of the steep maintenance costs, then go buy cars that depreciate 10,000 a year.
I'm not sure if it's been mentioned here, and certainly could have been elaborated on in the intro making comparisons twixt US & AUS sales, but AUS has the legacy of poor trade agreements stemming from the Button trade plans of the 80s, which thanks to limited AUS Labour gov thinking was the precipitate for what would be the death of our own car industry. We are now flooded with brands, More than the US. Successive US govs have maintained rigid trade agreements & tariffs on o/s manufacturers because it has the clout to do so. Aus govs don't, which is why we have such a ludicrous number of manufacturers flooding our markets. I also note that lack of conversation regarding consumer spending atm, new cars are a discretionary purchase...as such when times are tough, we close our wallets. Car companies respond by cutting prices...in an already flooded market. Yes, we win...It has less to do with test bedding vehicles for car brands & more to do with basic economics.
Yep it's getting competitive which is perfect for consumers. Legacy automakers e.g Ford, Toyota, Mazda, Honda need to be shaken up. I went to Kia recently with my purchase of a Sportage Diesel because I liked the design, price point and have seen them improve quality and reliability over the years. There is a lot of brand loyalty in Australia with the perceived view that the legacy car makers offers better quality and reliability. For a lot of consumers they won't just jump into a Chinese car because it's cheap, they still need exposure in Australia and time will tell what type of quality and reliability you could expect.
