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Old 01-22-2013, 02:45 AM   #25
DesiredM
Registered User
 
Join Date: Sep 2012
Location: Australia
Posts: 519
My Ride: E46 M3
All your points are valid as to why there is an inflation in prices and I agree with you. However those reasons alone cannot justify a near 70-100% price increase on many models of cars. Realistically they do it because they can, sure it might cost a little more to get cars here, sure there are taxes (we pay the lux car tax if its not included in the price), you will find a lot of dealers here own the property so there's an added expense but I would love to see the gross profit margins and turnover on cars like BMW etc. I'm not comparing Hyundai etc to the European brands in terms of quality but more so in terms of price between countries etc. Everyone knows cars here are priced stupidly however so many Japanese and Korean makers don't actually inflate their prices like the European brands do. Basically it's more so prestige pricing then it is costs associated with getting the cars here and selling them in Australia. It's simple...in Australia prestige cars obtain a prestige price point.

And sure Infiniti don't have any brand recognition as of yet but that can't justify their reasons for sales. Opel entered the market and nearly doubled Infiniti's sales within the same time bracket. Now everyone knows Opel is a lux brand of GM re-entering Australia, but why did people jump at them, because they entered with pretty good price points on a decent car and acknowledged what the Australian Market lacked - cars to suit the market. While our dollar is stronger now, it doesn't mean our economy isn't struggling in some aspects. But Infiniti lacked that price point...logically it's just a crazy business model. Enter the market with a fancy Nissan, double the price and see how we do. There's no value there, there's no reason for consumers to view it as a "possible" option for a purchase. Infiniti have done plenty of advertising in tv and magazine and e marketing yet it hasn't provided any result due to the fact they are entering a very competitive market and have out the self at a premium price point with little to back up the decision to do so.

At the end it's annoying that this is this case but Australia is calling out for something which is why BMW bought out the 1 series...a cheaper BMW to appeal to a wider market (still a huge mark up in price), Audi did their A1 and Merc is bringing out their A class. One day prices will drop but who knows when. Anyway I have whinged enough for today haha.
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