David Berthon's "Motor Torque"
Best car buys for 2010The new car market has kicked off in strident fashion despite predictions it would slow considerably following the end of the Federal Government's 50 per cent investment allowance for small business.
Sales last month were a record for a December month driven by a big uptake from the business sector.
However, the emphasis this month has shifted to the private retail car market where buyers have improved opportunities to save big dollars driven by the 5 per cent import tariff reduction on the 1st.January.
Car companies have responded with sharper discounts on the back of the tariff drop while many are also offering promotional free on-road pricing to stimulate sales.
Buyers should be aware the tariff saving does not apply to four-wheel-drives – they already carry a lower rate of import duty.
However, not all importers have pared their prices with a number taking the opportunity to recover profit margins lost during last year's hard economic times.
Importantly, Australia's free trade agreement with the U.S. and Thailand means cars from these countries are not affected.
Nevertheless, market forces and intense competition has still seen healthy discounts from importers of these destinations helped by better exchange rates.
The stronger Aussie dollar over the last 15 months has been a bonus to importers – up more than 50 per cent from an October 2008 low of just 60 cents to the US dollar - providing them with a much better margin to play with.
And with local cars carrying a percentage of imported parts Ford, Holden and Toyota also have an opportunity to sharpen their pencil on their locally produced models.
Don't forget last year's models already carry one year's depreciation so don't be attracted by a 2010 compliance plate. Remember the plate carrying the build date is far more important and dictates the age of your car at trade-in time.
Here's an A to V of new market deals:
Alfa-Romeo
No tariff related price reductions but good discounts on 2009 model stock with free on-road costs across the range including the relatively new manual-only three-door MiTo hatch. Pay $31,490 drive-away for the 1.4-litre six-speed, $37,490 for the more seductive 1.4-litre six-speed Mito Sport and save around $5000.
Aston – Martin
Has passed on full 5 per cent tariff cut. Like all upper luxury products the word discount is a dirty word but expect to save around $40,000 on 2009-compliance plate high-grade Aston's probably packaged as demonstrators. Varying options fitted to stock make quoting drive-away pricing difficult.
Audi
Audi has passed on the January 1 tariff drop with savings ranging from $1200 up to $11,800. During its January Open Haus sale it is also offering free on-road costs excluding dealer delivery. The top-selling A4 range gets price cuts of up to $4900 - the entry 1.8-litre manual A4 TFSI sedan kicks of the range at $54,828 drive-away which represents a total saving of $7533. However, Audi's sales success in recent years has been driven by large discounts – on top end models by as much as $30,000.
Bentley
Has passed on full 5 percent tariff reduction – Savings range from $14,186 for the entry 6.0-litre W12 Continental Coupe up to $18,600 on the potent Continental Supersports. The Continental GT Coupe now starts at $412,010 drive-away however recent deals suggest you can negotiate on one at around $375,000 on-road.
BMW
Has not passed on tariff reductions but argues it has not raised prices for two years as well as adding no-cost features. Under a January promotion titled “Joy delivers more driving pleasure” it is offering three years/60,000 kilometres free servicing plus a Guaranteed Future Value program for business customers through its finance arm with savings of up to $7500.
Chrysler
No price changes due to free trade agreement with the US but most models have free on-road costs. Save $5500 on the 3.0-litre V6 auto 300C CRD sedan at $59,990 drive-away. The 5.7-litre V8 has also been advertised at $59,990 drive-away for some time but most dealers will now talk turkey around $56,990.
Citroen
No tariff reductions. Best discount on this model can be found on the well-equipped 1.6-litre turbo Exclusive automatic now with free leather trim for $33,990 drive-away – a total saving of $7200.
Dodge
Free trade agreement with the US means no tariff savings but Chrysler Jeep Australia has slashed its Dodge Journey people-mover range. The entry 2.7-litre V6 auto five-seater is now $1000 cheaper and during January also gets a drive-away price of $39,990 – a total saving of $2000.
Fiat
No tariff savings here. Main deals at present are drive-away prices across the six-model Fiat 500 three-door hatch range – pay from $22,990 drive-away for the entry 1.2-litre manual Pop - save from $3200 up to $3450.
Ford
Imported models have received price cuts and added equipment courtesy of tariff cuts. Ford has now included prestige paint as a no cost option across its entire range – a saving of $320 to $400 depending on model. The popular Fiesta five-door hatch has been reduced by up to $500, the larger Focus models from $500 to $800 and the larger Mondeo hatch and wagon by up top $1450. However, the main focus remains on Falcon and on the well-equipped XR6 five-speed automatic sedan at $36,490 drive-away, a saving of over $9000. This actually undercuts the on-road price of the entry XT four-speed automatic.
Holden
Holden has added features on its imports rather than cut prices with the Korean-sourced 1.6-litre Barina three-door at $13,990 drive-away gaining a free power sunroof valued at $2000. The New Year focus for the freshened six-speed automatic VE Commodore range with SIDI injection is the limited–edition International variant – at $36,490 drive-away with metallic paint and with the benefit of 18-inch alloys, rear parking sensors and leather trim valued at $5450. All up saving is around $10,000. Discounts on higher-grade Berlina, Calais and Calais V variants are ranging up to $8000.
Honda
Imports sourced from Thailand remain unchanged but UK and Japanese sourced models were price reduced between $1500 and $3000 on December 1. Honda has also kicked off the New Year with sharp drive-away promotional deals. The 1.3-litre five-door manual Jazz at $17,490 saves around $2500, the 1.8-litre Civic VTi manual sedan at $23,990 drive-away saves around $2150 while the 2.0-litre Accord Euro auto sedan at $36,990 drive-away saves $2350.
Hyundai
No tariff reductions at this stage but under review. Drive-away promotional deals however. The best-selling 2.0-litre i30 SX five-door hatch remains at $19,990 drive-away for 2009-plated stock, a saving of around $3100. Spend another $1000 and you get the 2010 model year with another four airbags and a five-star crash safety rating but save less at $2600.
Jaguar
Has applied the tariff reduction to its six-model XF model range. The small X-Type sedan continues in run-out at $49,990 drive-away but check the build-date, more than likely 2008. Jaguar has applied reductions of between $3260 and $3460 across their petrol and diesel XF range. However the entry XF 3.0-litre V6 auto with promotional pricing of $119,990 drive-away is the best buy – normally $127,000 on-road it also gets a free rear parking camera and keyless entry valued at $2340 – total saving $9500.
Jeep
Despite its 4WD range not gaining any tariff benefit has stepped off strong exchange rates with price reductions of up to $5500 on its mid-sized Cherokee 4WD range. The entry 3.7-litre auto Cherokee Sport has been reduced by $2500 and received free on-road costs – at $37,990 drive-away it saves a total $6000. The higher-grade 3.7 auto Cherokee Limited provides the best saving of $9200 – reduced by $5500 and with free on-road costs to $40,490 drive-away.
Kia
Several tariff related price reductions – has served up some sharper drive-away pricing on its small 2.0-litre manual Cerato S sedan – now $18,990 drive-away, a $4000 saving. The slow-selling Soul has also gained a $2000 reduction across the five-model line-up – drive-away prices now range from $22,990 for the 1.6-litre manual entry Soul to $32,890 for the 1.6-litre turbo-diesel CRDi Soul 3 auto.
Land Rover
Tariff reduction does not apply to its four-wheel-drive range. The popular new Discovery 4 is in short supply so no deals but expect to negotiate well on the high-end Range Rover Sport and Vogue models. Recent deals reflect discounts of up to $20,000.
Lexus
Has passed on full tariff reduction with savings ranging up from $2590 for the 2.5-litre IS250 Prestige auto, now $61,953 drive-away. At the upper luxury end, the LS460 saloon drops by $8650, now $204,474 drive-away. The new high-performance 5-litre V8 IS F sedan drops by $6000 to $136,906 drive-away.
Mazda
Mazda took into account the tariff reductions early in mid-October. The entry 1.5-litre manual Mazda2 Neo three-door hatch reduced by $300 but is also being promoted at $17,490 drive-away, total saving $1800. The top-selling Mazda3 sedan and hatch reduced from $660 for the entry 2.0-litre manual Neo up to $1030 for the 2.5-litre SP25 Luxury. The Neo manual also has a promotional drive-away price of $22,990 – total saving $2100.
Maserati
Tariff related price cuts – prices on the Granturismo drop $10,000, o0n the Quattroporte range from $10,000 $15,000. The entry 4.2 V8-litre Granturismo auto coupe now starts from $310,000 drive-away, the top-line 4.7-litre V8 Quattroporte auto saloon from $352,500. Discounts can be negotiated at present by up to $30,000.
Mercedes-Benz
Has not reduced prices but suggests it has added equipment to its cars in the lead up to the tariff cuts. The new E-Class is the exception with pricing taking into account the lower tariff. Has a special $5000 rebate on all new and demonstrator models purchased before February 14 however recent deals suggest discounts on higher-priced models far exceed $10,000.
Mitsubishi
Extra features here - all 2010 model year Lancer sedans and hatches get side and curtain airbags taking the total number to seven including a driver's knee airbag. However, the promotional price for the entry 2.0-litre manual ES sedan and hatch rises $500 to $21,490 drive-away, a saving of around $3600. There are still good numbers of the 2009-model year Lancer from $20,990 drive-away.
Nissan
Thai sourced Tiida and Maxima miss out on tariff cuts, so too the Japanese sourced Dualis, X-Trail, Pathfinder, and Patrol 4x4's. The 370Z coupe and barnstorming GT-R coupe already had reductions factored into their pricing. No discounts on the low volume GT-R but $5000 can be honed from the 370Z – pay around $69,000 drive-away for the manual model.
Peugeot
Tariff cut reductions across the entire range with savings of up to $2200 plus electronic stability control has been added on all models. Peugeot's big seller, the 308 hatchback range, gets the biggest cut of $2200. The entry 1.6-litre manual 308 XS five-door also gets a promotional price of $26,990 drive-away until the end of February – total saving $3400. Prices of the new 4007 4WD range launched late last year have also fallen by $1000.
Porsche
Has passed on tariff related cuts on its sports cars. Pricing on its new Panamera remains unchanged as tariff cuts were taken into account at October launch. The base 2.9-litre manual Boxster drops by $9800 while the most affordable 911; the 3.6-litre manual Carrera Coupe drops $3900 to $220,800. Masters at hiding discounts in demonstrator deals – as such save $20,000 on a no mileage 911 coupe/cabriolet “demo”, $30,000 on high grade GT3 and turbo models. Boxster discounts range from $5000 to $7500.
Renault
No direct tariff cuts on January 1 but has added specification and adopted strong promotional pricing on several models. Best Renault deal is on the highly-equipped 2.0-litre turbo-diesel Laguna Expression five-door hatchback – the six-speed manual now $32,990 drive-away, the six-speed auto, $34,990 drive-away. This represents a saving since March last year of over $15,000. It has also slashed $5000 off the manual Clio Renault Sport 197 hot hatch – now $41,990 drive-away.
Rolls-Royce
Prices have been rolled back by $50,000 across all models for 2010. This also includes the smaller Ghost model due for release later this year - now $645,000 drive-away. Buyers at this end of the market are hard nosed and discounts on the top-selling 6.8-litre Phantom saloon, normally priced at $1,068,000 drive-away, can easily top $50,000.
Saab
The brands demise is all but confirmed and no Saabs have been imported since last June. However, the importer must support parts supply for eight years and remaining stock still provides a bargain. Depending on stock remaining dealers will sell a 2.0-litre turbo Aero 9-3 convertible normally $98,805 drive-away for $74,900 – save over $23,800.
Skoda
Has reduced prices – the Roomster range drops by $1000, the Octavia models by up to $2000, the larger Superb sedan by up to $3000. Skoda dealers are also offering $2000 in free accessories this month on certain Octavia models including bike, surfboard and ski carriers.
Subaru
Four-wheel-drive Forester, Outback and Tribeca models are excluded from the tariff reduction. Prices for the new Liberty all-wheel-drive range launched last year reflect the reduction while on the entry Impreza R manual hatch and sedan have had their drive-away price of $24,990 confirmed as ongoing – a saving on its previous drive-away of around $1800.
Suzuki
Has trimmed the price of two popular models, the relatively new Alto hatch and the small Swift hatchback range. The 1.0-litre three-cylinder manual Alto GL five-door hatch has been reduced by $700 while the higher-spec GLX manual is now $2000 cheaper. During January the Alto GL has a promotional price of $12,490 drive-away, a further saving of $2100. Reductions on the 1.5-litre five-door Swift range run from $500 on the entry manual up to $1200 for the Swift S manual and auto. The optional side and curtain airbag safety pack has reduced from $700 to $550.
Toyota
A mixed bag of cuts and increases on imported product. The top-selling Yaris light car has been reduced between $650 and $850 depending on model, certain Corolla sedan models drop between $350 and $1300, the popular Kluger range by $500 while the Tarago people-mover gets the best cut – reducing between $2160 and $2770 depending on model. In January, the 1.3-litre manual Yaris five-door has a promotional price of $15,990 drive-away – saving around $2300.
Volkswagen
No decision yet on tariff-related reductions. However, diesel Polo and Golf models carry good discounts. The 1.6-litre manual Polo Pacific TDi five-door manual hatch at $23,490 drive-away, saves around $3500. The 1.4-litre manual Comfortline five-door Golf hatch at $33,890 drive-away with metallic paint saves around $4000.
Volvo
A mixed bag of price reductions, engine changes and specification additions. The five-cylinder turbo-diesel engine has been replaced in the C30, S40 and V50 models with the cheaper Ford-sourced four-cylinder turbo diesel. The C30 2.0D drops $7000, the 2.0D S40 and V50 by $3500. Petrol C30 hatch variants gain $7000 worth of extras for $1000 over the manufacturers list price. Likewise, the S40 and V50 gain $6700 in extras. ends.
