Pricing Issues and Practices

Semiconductor shortages a headwind for new car prices

While car prices down under have remained relatively competitive in recent years as the industry faces heightened competition and subdued consumer demand, a new issue has emerged that has the potential to keep a cap on those aggressive prices. And that relates to a shortage in semiconductors. The dynamic could even lead to higher prices, as a supply-demand imbalance catches numerous parties off guard. Semiconductors...

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New Cars vs Used Cars in COVID times

New cars have stalled on dealer lots, but used cars are fetching strong valuations In April of last year, new car sales dropped 48.5% compared to 2019 figures. To help recover from this massive hit, dealers want the government to step in and modify or get rid of altogether the taxes that apply to new vehicles. They hope this will incentivize new car purchases. Compared to April 2019, the industry missed out on $1bil...

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Why Your Car Isn't Worth As Much As You Think!

Currently most people have an overinflated idea of the value of their existing car and what they are going to get if they trade it in. In my opinion, this is largely due to the easy access to classifieds sites where similar cars listed for sale are mistakenly used to benchmark the market value. Let me explain... It's called Carsales not Carsold. The prices you see advertised are anything but the actual sales price....

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Will the Fixed-Price Agency Model lead to Higher Prices for New Car Buyers?

Late last month, in Canberra, there was a Senate Inquiry discussing the plan put forward by Honda and Mercedes-Benz to introduce fixed pricing across their dealerships. Honda has already committed to roll out a fixed-price agency model from the middle of next year, whereby its showroom numbers will be slashed dramatically to cater to the move. Meanwhile, Mercedes-Benz intends to make the switch in early 2022. What...

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Accessories - Buying Genuine or Aftermarket?

There's no easy answer to the question, "Should I buy genuine (OEM) accessories or aftermarket?' There are arguments for and against and we outline them below. Reasons To Buy From The Dealer (OEM/Genuine Options) Convenience If you're buying a brand new car, it's a big purchase both financially, emotionally and it can also take up a lot of time.  It's invariably more complicated than you first think. Even a s...

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Second-Hand Car Prices Reach a Record High…and that’s good for New Car Buyers

  The impact of COVID-19 has brought about many changes to our daily lives, however, there is also one trend playing out in the second-hand car market. Spurred on by a surge of motorists who are looking to avoid using public transport, vehicle ownership is on the rise...and a large driver of that is coming from second-hand cars.   The latest research from Moody’s Analytics points to a significant j...

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Honda Set to Move to Fixed Pricing

After much speculation, Honda has finally confirmed its plans for the Australian market for the foreseeable future. While some industry experts predicted that the Japanese brand might wind up its local operations, just as Holden has recently done, the company has instead ‘committed’ to retaining its presence down under. However, the auto-maker’s commitment comes with a few strings attached. And for...

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What Impact Might the Declining Australian Dollar Have on Car Prices?

Amid all the latest headlines focusing on the Coronavirus, financial markets have been roiled. This includes sharp currency movements that have seen the Australian dollar plunge to a near eighteen-year low. Although this trend has been playing out for a longer period across the last 24 months or so, the shift of the world’s attention to an accelerating viral pandemic has only exacerbated the weakening local cu...

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Considerations When Buying Ex-Demonstrator Vehicles

Earlier this year, the new car industry changed the method with which it reports some of its sales data. As a result, one of the consequences to come out of this is a reduction in the number of ex-demonstrator cars being sold in showrooms across the country. The changes are because of the way reporting obligations dictate stock transfer from manufacturers to dealers. You can read about the particulars in greater det...

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Bad Motoring Habits that will Depreciate the Value of Your Car

By now you’ve probably done your homework into what is a reasonable price for the new car that you have your eyes on. While many motorists focus on the initial purchase price of a car, it’s also important to consider what its resell value might be. One of the biggest factors shaping the resale value of a car is depreciation. As soon as it departs the showroom floor, you’re already staring at a hair...

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