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$120K labelled a ‘true’ pricetag for top-line limousines

Easy money: A near top-of-the-line BMW 750Li should not cost more than about $120,000 in Australia, BMW dealership chairman Lyndon Rose says.

Luxury sedans sold in Australia could be a lot cheaper than they are, dealer claims

General News logo12 Aug 2014

MOTORLINE chairman Lynton Rose says the best example of how much cheaper a luxury car could be in Australia is the flagship 7 Series limousine, which sells in Australia for between $206,200 (plus on-road costs) for the entry-level 730d and $391,175 for the range-topping V12-engined long-wheelbase 760Li.

The long-standing Brisbane-based BMW and Mini dealer bases his comparison on a BMW 750Li limousine – sold in Australia for $299,630 before on-road costs are stacked on top of it – as an example of the pricing differences between the international markets.

He used pricing scooped up from US-based Atlantabmw.com and British BMW-owned dealership BMWParkLane.com as the basis for his comparison that he said disproves Federal Chamber of Automotive Industry (FCAI) claims that Australian new-car prices, particularly for luxury cars, are about the same as for British and New Zealand markets.

“In the US a 750Li in round figures is about $US100,000 – $92,000 plus about eight per cent tax – that’s what it is on the road, driveaway,” Mr Rose said.

“In the UK, it’s about $US120,000 ... which again takes into account the difference between the eight per cent tax in the US and the 20 per cent VAT (in the UK).

“In other words, they’re very similar in price, one is a right-hand-drive market, one is a left-hand-drive market, one’s got 400 million people, the other has got 65 million.

“So what I’m saying is the fallacy of these manufacturers trying to compare right-hand-drive markets with right-hand-drive markets is all lies.

“Because here we have the Brits being able to buy a 7 Series – likewise all of the others (in the BMW line-up), I’m only picking the 7 – they can buy basically the same price as the Americans can. So why can’t we?” Mr Rose said he has based his price assessment on the efficiency of car-making worldwide, where factories were building cars for any number of markets worldwide on the same line.

“If you go to the factory, they’re not sitting there having 27 7 Series going down the line for Australia, and then having 400 of them go down the line for America,” he said.

“The assembly line has got a South African car, then an English car, then an American left-hand-drive car and back to Australian right-hand-drive car – every car is different, so it doesn’t matter two hoots, it’s all rubbish what they talk about.” Mr Rose said the same BMW-badged car that American owners could buy for $US100,000 including tax, and the Brits at a similar amount, would cost $200,000 by the time it arrived in an Australian showroom.

“It’s the pricing policy of Australia, that’s all it is,” he said.

“I can tell you right here and now when manufacturers get serious as to what they want to do with the price, I can tell you what I can sell the car for. I can sell the car for the same price as what they sell it outside (Australia),” he said.

“They’ve just got an Australian pricing policy, not a Munich pricing policy or a German pricing policy, but an Australian pricing policy.

“For me personally, forgetting cars for a minute, (Australian retail liquor chain) Dan Murphy parallel imports Moet Hennessy, so it keeps them honest, perfume companies can import as well, and anyone who can parallel import gets the stuff around the right way.

“But the law won’t allow Australians to do that with cars, and grey imports are not the answer.”

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