Current Australian Prices vs US Prices

[Ron3KL]

There's been a long thread about the relative merits of Subaru and Volvo.
Cars aside, I thought it might be interesting to compare prices of these two brands in Australia compared to the US.

So FYI, here are the current Australian Recommended Retail Prices (excludes dealer costs and statutory charges) for comparison, from manufacturer's web sites:

Prices in AUD$ (with equivalent USD$ in brackets, at around 1AUD=70c US at the moment). NB The figures in brackets are not the US prices. I'm sure North American folk can reply with them.

Bear in mind that Subaru Liberty and Outback ranges are different here in Oz to US.
For brevity I have listed only the wagon prices, not the sedans.

Subaru (http://www.subaru.com.au)

Liberty 2.0i Manual AUD$32990 (USD$23093)
Liberty 2.0i Sportshift AUD$35490 (USD$24843)
Liberty 2.5i Manual AUD$36990 (USD$25893)
Liberty 2.5i Sportshift AUD$39490 (USD$27643)
Liberty 2.5i Premium Sportshift AUD$44990 (USD$31493)
Liberty 2.0 GT Turbo Manual AUD$54990 (USD$38493)
Liberty 2.0 GT Turbo Sportshift AUD$56990 (USD$39893)
Liberty 3.0R Sportshift AUD$52990 (USD$37093)
Liberty 3.0R-B Manual AUD$53990 (USD$37793)
Outback 2.5i Manual AUD$37990 (USD$26593)
Outback 2.5i Sportshift AUD$40490 (USD$28343)
Outback 2.5i Premium AUD$43990 (USD$30793)
Outback 2.5i Premium Sportshift AUD$46490 (USD$32543)
Outback 3.0R Auto AUD$46490 (USD$32543)
Outback 3.0R Premium Sportshift AUD$53490 (USD$37443)

Volvo (http://www.volvocars.com.au)

V70 2.4 SE Manual AUD$59950 (USD$41965)
V70 2.4 SE Geartronic AUD$61950 (USD$43365)
V70 2.5T Aktiv Geartronic AUD$64950 (USD$45465)
XC70 2.5T Geartronic AUD$68950 (USD$48265)
XC70 2.5T 'Lifestyle Edition' Geartronic AUD$69950 (USD$48965)

As you can see, Volvo's Australian prices are much higher than a) Subaru generally and b) the US prices. Even when the Australian dollar rises Volvo Australia maintains their prices while other imported brands come down.

I think that this is hurting their sales a lot. They certainly lost a purchase from my wife a month ago. Amongst other cars, she looked at the new Mazda SP23 auto sedan and the new S40 T5 sedan. At first glance very similar cars, with the same platform (chassis/hard points etc) but different bodypanels, drivetrain and interiors. US prices are (roughly) USD$17,000 and USD$27,000 respectively, but the Australian prices are $32,000 (USD$22400) and $60000 (USD$44100). Ouch! Price ratio in US 1 to 1.6. Ratio in Oz 1 to 1.9

Not only that, the salesman quoted her $63000 plus costs. When the salesman told her the price of the S40 she didn't even bother to get a brochure. Just quietly said "Hmmm. No, I don't think so" and walked out of the show room. An hour later she bought the SP23. Nice car, but not an S40 T5. Sigh. :(

And for good measure....

Audi (http://www.audi.com.au)
Allroad Quattro 2.5TDI Tiptronic AUD$82,900 (USD$58030)
Allroad Quattro 2.7T Tiptronic AUD$89,900 (USD$62930)
Allroad Quattro 4.2 Tiptronic AUD$108,900 (USD$76230)

Kinda takes the breath away that last one :eek:

EDIT: Clarifications in red based on Morvran's comment below.

[Morvran]

I only have a second to post, but those US prices are way off. I wouldn't be able to find an XC70 on a lot here in DC that's anywhere near $48k. $44k is the high-end, and that's with a ton of options. $38-39k is normal msrp for one with premium pkg.

Edit: unless you're just converting the Au prices to US dollars? Then it would make sense, but wouldn't be a comparison to US prices as I read the title. :)

[wiz]

So what is the list price for a high-end XC70 now? I've lost track of the prices. We bought two years ago, and our car has touring, winter and premium option packages and the sticker was $42.9K.

[Ron3KL]

Morvran wrote:

Edit: unless you're just converting the Au prices to US dollars? Then it would make sense, but wouldn't be a comparison to US prices as I read the title.

Yep. Point taken, but I assumed that US readers would a) known their own pricing and b) NOT know AUD to USD exchange rates.

But I stated:

Prices in AUD$ (USD$ at around 1AUD=70c US at the moment)

By which I meant the figures in brackets were a conversion of Australian prices to USD equivalent for ease of North American readers. Sorry for any confusion. Will edit. Have not listed any US prices (except the two at the end).

I was originally going to put this into the Subie vs Volvo thread which already had some US prices in it for comparison, but thought better of it because its more about market differences rather than vehicle differences.

It gets even more interesting when you start throwing the relative pricing for UK and Europe into the mix.

[Morvran]

Got it...yeah, then those prices are crazy compared to US prices. I mean, you could buy a fully loaded V70R here for much less than what you'd pay for an XC70 on your list.

[Ron3KL]

Seriously??? Aaaagggh.

V70R is AUD$103000 plus costs!

And then you go rub salt into the wound by saying "fully loaded", implying there are choices available. Well I guess we can choose between manual and geartronic... Plus AUD$1350 for metallic paint and AUD$2150 for sunroof.

Sigh.

[swedespeed]

Guys,

Remember economies of scale. The US population alone is 20 X that of Aust.

Australia is 3 times further away, nick named A*#se end of the world.

we have Goods service Tax 10% , Luxuray car Tax 25% after $57K, import duty tax ~15%, Stamp duty ~4-5% which is all accumalitive (i.e you paying tax on tax on tax...)

Cost of living.... I can go on,

Same goes for electronics, Items down under cost double (after conversion) to that in the US. Europe/UK dont even think about it.

Remember the resale value and fuel running/insurance costs associated.

I paying ~$1600 Australia for insurance (inluding GST anf stamp duty). I'm sure US pays more than that.



But Melbourne , Australia did get Best Livable city in the World, so it cant all be that bad.

[Ron3KL]

Yes but all those factors don't account for the differences between the brands in the two different countries. Relatively speaking Volvo is more expensive in Australia than other imported brands when comparing to other countries. Mind you Mercedes is a lot worse...

Take the SP23 vs S40 T5 example I gave. Both cars are subject to the same Australian taxes, although the S40 T5 would have around $550 luxury car tax on it. The two cars share some design costs and componentry. So why does the Volvo cost 1.6 times the Mazda in the US and 1.9 times the Mazda in Australia?

[swedespeed]

Maybe its the BVD (Bloody Volvo Driver) image we have???

95% of people go out and buy what you tell them to buy, Marketing.

Most people dont even consider the volvo because of the image.

I evaluated all the competition (xc won hands down), test drove/lived and only considered volvo because my wife suggested, as it was her first car she ever drove.

Its hard to discount we you dont do the numbers. Remember these guys need to make a living too.

[Ron3KL]

Geez, I hate the BVD advertising campaign!! Its bad enough having to stand my ground and defend my choice of an unpopular brand which is the butt of jokes and bigotry, without having it shoved in my face by the company itself. :mad:

<end rant> :o