A report commissioned by the Federal Chamber of Automotive Industries (FCAI) has found Australia to be a "buyer's market" for new-car shoppers.
Compiled by IHS Automotive, the report compared ‘like-for-like’ right-hand-drive models in the Australian, UK and New Zealand markets, finding Australia had the cheapest prices on “the vast majority”.
The report claims that Australia, with 67 carmakers offering over 350 models, is highly competitive when compared to the UK’s 53 brands, 51 in the US and 49 in Canada.
“Our research shows that for the vast majority of the Australian new car market, a model of like specifications is cheaper in Australia than it is in the United Kingdom or New Zealand,” FCAI Chief Executive Tony Weber said.
“This is great news for Australian consumers, especially when you also consider the ongoing benefits included in the cost of buying a new car in Australia, such as the level of support provided by the brand, the access they have to the dealer network, and the inclusion of features specifically designed for the Australian landscape and lifestyle.”
Mr Weber noted features such as Australian GPS maps, appropriate towing capacities, cruise control and high-temperature air-conditioning systems as further proof Australians were getting value for money.
He added that increased competition also lead to improved safety features in cars, along with better car security and improved environmental impact.
Certain variables could cloud the report’s findings however, with stamp duty, registration and other taxes not considered in the price comparison due to high variations in each market.
The report used an average exchange rate for the first six months of 2014, which worked out at £0.55 for the British pound.
FCAI says its position on new car affordability is backed by the CommSec Car Affordability index, which shows car prices in Australia are at their lowest since the index began in 1976.
Price Comparison (in AU$)
- Ford Focus Trend hatch - $22,290 Aus | $32,325 UK
- Mazda3 Neo - $23,792 Aus, $31,405 UK (some difference in specification level in the UK)
- Toyota Corolla Ascent Sport hatch - $23,540 Aus, $24,250 UK (sold as the Toyota Auris Icon in the UK)
- Audi A3 Sportback 1.4 TFSI S-tronic (92kW) - $35,600 Aus | $37,641 UK (designated ‘SE’ in UK and ‘Attraction’ in Australia)
- Audi Q5 2.0 TDI quattro S-tronic (130kW) - $62,600 Aus | $63,645 UK
- BMW 3 Series 328i - $69,400 Aus | $68,808 UK
- Mercedes-Benz C-Class - $60,900 Aus | $56,659 UK
- Mercedes-Benz A 180 - $35,600 Aus | $42,417 UK
- Mercedes-Benz A 45 AMG - $74,900 Aus | $87,156 UK
- Mercedes-Benz ML 350 BlueTec Diesel - $92,303 Aus | $100,410 UK (Aus price listed excludes Luxury Car Tax payment of $9,933, which brings the total list price to $102,236)
- Land Rover Freelander 2 TD4 SE - $54,100 Aus | $55,832 UK
- Range Rover Evoque eD4 Pure - $49,995 Aus | $46,795 UK
- Range Rover Sport SDV6 HSE - $110,688 Aus | $103,486 UK (Aus price listed excludes LCT payment of $15,541, which brings the total list price to $126,229)
Note: for the sake of comparison, the prices above are all in Australian dollars.
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