Thread: D4 Australian price compared to UK

I recently purchased a European car (daily drive). The dealer got just over $60k of the total of $84k. The rest was taxes, duties, on road costs and other government charges.
Based on these costs LRA doesn't get a huge cut, OK they make a good living. If LRA dropped the price for a D4 by $12k they would get 20% less which is a very substantual cut for any importer. They overall price to us wouldn't drop 20% as the government charges will not drop a lot.

Through my business I have a close working relationship with the motorcycle industry at the importer distributor level.

Its easy to bag out vehicle distributors for price gouging but in the GFC when our dollar was worth bugger all nearly every motorcycle they sold in Australia lost them money. This went on for over 18 + months or so and while they now have a exchenge rate that works for them the market size has shrunk about 30 to 40% so things have not improved in fact they have got worse for many.

Land Rover are looking at being in the luxury end of the market and it is working for them. Why would they want to go head to head in a lower priced segment of the market that often has price wars when they don't have to? Plus they can't get enough new cars now so drop the price and just see longer back orders. Why would they do that?

The other thing everyone forgets is how would you feel if tomorrow LR dropped their new prices by 20% and you had a D3/D4 sitting in the garage? Your existing vehicle would be worth squat! Then every late model LR owner would want to kill LR Australia for ruining their resale values.

Nothing is ever as simple as it usually seems on the surface.

cheers,
Terry