How much did you paid for your 2009/2010 Accord Euro

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Originally Posted by Fredoops

Considering that both Accord Euro and Acura TSX come out of the same factory in Japan Lets throw some numbers around... just to make things interesting.

1. The Accord Euro Lux Specs are pretty much the same as the base model Acura TSX (leatherseat sunroof, all the jazz)
2. The come out of same factory in Japan. product cost difference should be minimal.
3. Tariff: USA, 2.5% AUSTRALIA 5% (DECREASED FROM 10% LAST YEAR, kudos to Rudd)

On-road costs aside (which in USA is like $500 bucks... in total, compared to $3000 here...)
Distance between Aus to Japan and US to Japan is pretyt much the same, due to volume, it's probably cheaper to ship to USA than here...

Lets ignore the onroad costs and just focus on the listed car price (average on road cost for car in USA is $500 odd... compared to $2-3000 here)
Listed RRP base price of Acura TSX Auto: $29,610 USD ( which is $29102 AUD , Exchange rate: $1USD=$0.98287AUD)
Listed RRP base price of Euro Lux Auto: $41,290 AUD (which is $42,009 USD, using same exchange rate as above)

Now adjust the Acura TSX price to show how much it would cost if USA has the same Tariff rate as Australia (5% instead of 2.5%)
$29,610 USD * 1.025 = $30,350 USD (which is $29,830 AUD, using same exchange rate as above)

SO after adjusting the Tariff. A Euro Lux Auto is $41,290 AUD, a Acura TSX Auto is $29,830 AUD, thats a $11,460 difference!!

Even if you do count in the "specials" honda australia is givign out at the moment... which is $2,090 (source: discountnewcars.com.au)
It's still a $9000 difference before looking at onroad costs...

And dont give me that ADR compliance rubbish. it doesnt cost 10 grand car to comply with ADR, not a Honda, and not at this volume.
I'm telling you, Honda makes s*** load more money selling Euros here than USA or Europe for that matter.

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the thing is, overhead costs of certain businesses here in Australia is just too high. if a potential new car dealer is not sure he would earn more than the bank interest rate, then he'd better put the money in high interest saver account :p

especially now with the current carbon tax plan, i think the gov't seems to be quite happy to make Australia be a more expensive country to run a business in. :p

Quote:

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Originally Posted by Fredoops

Considering that both Accord Euro and Acura TSX come out of the same factory in Japan Lets throw some numbers around... just to make things interesting.

1. The Accord Euro Lux Specs are pretty much the same as the base model Acura TSX (leatherseat sunroof, all the jazz)
2. The come out of same factory in Japan. product cost difference should be minimal.
3. Tariff: USA, 2.5% AUSTRALIA 5% (DECREASED FROM 10% LAST YEAR, kudos to Rudd)

On-road costs aside (which in USA is like $500 bucks... in total, compared to $3000 here...)
Distance between Aus to Japan and US to Japan is pretyt much the same, due to volume, it's probably cheaper to ship to USA than here...

Lets ignore the onroad costs and just focus on the listed car price (average on road cost for car in USA is $500 odd... compared to $2-3000 here)
Listed RRP base price of Acura TSX Auto: $29,610 USD ( which is $29102 AUD , Exchange rate: $1USD=$0.98287AUD)
Listed RRP base price of Euro Lux Auto: $41,290 AUD (which is $42,009 USD, using same exchange rate as above)

Now adjust the Acura TSX price to show how much it would cost if USA has the same Tariff rate as Australia (5% instead of 2.5%)
$29,610 USD * 1.025 = $30,350 USD (which is $29,830 AUD, using same exchange rate as above)

SO after adjusting the Tariff. A Euro Lux Auto is $41,290 AUD, a Acura TSX Auto is $29,830 AUD, thats a $11,460 difference!!

Even if you do count in the "specials" honda australia is givign out at the moment... which is $2,090 (source: discountnewcars.com.au)
It's still a $9000 difference before looking at onroad costs...

And dont give me that ADR compliance rubbish. it doesnt cost 10 grand car to comply with ADR, not a Honda, and not at this volume.
I'm telling you, Honda makes s*** load more money selling Euros here than USA or Europe for that matter.

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Making this statement and implying Honda dealerships makes $9000 per Euro, shows an incredible amount of ignorance. If you knew anything about the car industry in Australia, Honda are one of many brands that are doing it very tough. High flyers of the imports at the moment are Toyota ,Mazda and Hyundai.

The exchange rate is only now 1us$=aus$.98.. if you have a look more than 6months ago it was .60aus$ something for 1 us$.... I am not a car dealer, but if both the currency are equal then honda may sell the car cheaper here.

1year ago our aus$ was same as now 1:1 and i was going to buy a BOSE stereo and the high end bose here is 7k, compare with same one in usa is 3400 us$. I asked this question to bose australia why the same system is nearly double and they told me bose australia can't reduce the price for the current exchange rate flow and if the exchage rate for aus$ always same then it may possible...

Think about Lexus IS250, its just 32k us$, compare with here 61k aus$(cheaper bargain can get around 56k aus$ driveaway)...

Now sure thats why toyota camry and aurion are very cheap can get around 25-27k may be they built here in australia and not import from overseas?

Now honda reduce prices cheaper to make sales and it who knows after June they may increase the price back...

also, you can't import a US spec'd car into australia anyway :p

instead of complaining about price differences between USA and Aust, why not enjoy it while you can??

i know many people who bought sets of Goodyear F1 Assy and Michelin PS2 from USA for half the rrp here.

i myself bought a set of Bilstein PSS10 coilovers for a GREAT price, here the rrp is $3500.

if the AUD / USD stays at this level in the next 2 years, comes time to replace my CU2 tyres i will buy a set from tirerack.

in the sharemarket / forex market, there are many many BIG PLAYERS who kind of manipulate all these things, and they strike things FAST!

GFC, you think everyone looses? in fact the BIG PLAYERS gained BIG BIG BIG MONEY from their derivatives, it's just the news don't report on them and they don't like to be exposed.

i bet when USA / EUROPE / UK start to raise their interest rates, the AUD will drop as quick as it rose. it's all a game those BIG PLAYERS play.

It is a well known fact thar cars are expensive in Australia,and very much cheaper in America,but we have to have cars,and they need to be paid for,so just get on with it.....................

Quote:

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Originally Posted by albii

Making this statement and implying Honda dealerships makes $9000 per Euro, shows an incredible amount of ignorance. If you knew anything about the car industry in Australia, Honda are one of many brands that are doing it very tough. High flyers of the imports at the moment are Toyota ,Mazda and Hyundai.

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You are assuming I am talking about car dealers.
Did make any comments about the dealership in there?
Did I? - No I didn't.
You assuming I'm talking about Net profit to the dealership.
Did I mention whether it's Gross or Net profit per vehicle? - No I didn't
Honda Motor's gross margin is well documented: http://ycharts.com/companies/HMC/gross_profit_margin

Furthermore, ever heard about "International transfer pricing"?

Company has branch in country A and country B,
Tax rate in country A is 15% and Tax rate in country B is 30%
If you are the CEO, what would you do?
Let me tell you, I'll sell cars from country A to country B AT CLOSE TO MARKET COST OF COUNTRY B
As a result, I retain my profit at country A where Tax rate is less.

It's not illegal, and it's not exactly legal, transfer pricing is exactly why some companies base in certain countries.
Honda's are able to sell to USA cheap because:
A) they build cars there (even if it's not Acura TSX, they still have overhead and fix costs to average out)
B) low corporate tax rate (hell... NO corporate tax almost, thanks to Obama)

Transfer pricing means this:
Honda Australia makes bugger all money, all the profit stays in Japan or where ever the hell Honda have their headquarters, all I'm saying is Australians as a whole get s raw deal even the car company staff.

Also with transfer pricing, the CEO can actually allow certain branches in certain countries to run at a loss to rank up the Tax credits, Acer had done that before.

It may sound like straight tax evasion... but Australian Tax office.... In my time in the international trade business, ATO can't do crap. Fact is ATO cant fly to Tokyo to check how much it actually cost to build a Honda.

Quote:

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Originally Posted by natnat

instead of complaining about price differences between USA and Aust, why not enjoy it while you can??

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Im not complaining about anything, I'm just point out some known multinational-corporation tactics, just so the public know, before they buy into crap like "what good for X corporation is good for australia"

Just curiously is anyone knows(may be honda salesperson here)how much does this base model accord euro auto cost to the dealer including their premises rent, staff wages etc etc... THe current advertise price is 35290... sometimes dealers cry they dont get a margin at all, they loss on the sale.... i really don't know its true, when i bought my car for 34k with genuine rear park sensors and 5yr warranty 1yr ago, the salesguy was crying when he range me 1month after for courtesy call how is my car etc etc, they lost in my sale as they want my business etc etc. I asked them if you lose why did you sell me, he said he wanted my business and they recover it from other sales...as they don't sell only honda, they sell other prestige brands as well..

Who knows when one guy they sellt he car for very cheap price below cost or close to their cost price, they may recover it by selling another guy with full price.. who knows..

I know these tactics when i was a part time salesperson in electrical department in one of the big retailer while i was in uni... But not sure the car dealers using same tactics...

ANyway we bought the car and just enjoy it.. But Honda should do something with reduce the price to compete with mazda 6 and liberty...

I saw the advert this morning,and the Euro special of $32990 for the manual ,and $35300 for the auto,is a RUNOUT DEAL,which means that the mid cycle facelift is not far away now...........................

I saw the advertisement today in Sydney morning herald for accord euro as RUNOUT model with te price 32990 for manual in Rick damelian add saying only 2 left.. Its sure the facelift model is comming very soon, but question is how much the dealers going to reduce even further for the current model. WHat i heard is honda doesn't import many euros to Australia and stocks are limited. Who knows its truth or not..

Anyone knows the big accord also comming with a facelift version...

Honda imports enough Euros into Australia,but stocks are running out before the facelift arrives.

My dealer,Astoria currently have 8 Euros in stock.

I wonder if the price of the facelifted ones will rise slightly ???

Or if they will start off where the older ones left off ???

Time will tell.............

Anthony, 8 they got in stock means that includes base, lux and lux navi? After they sold out those 8 means have to wait for the facelift model?

I think Honda have to keep the price same to compete with Liberty and Mazda 6

God no offence, but astoria is my least favourite dealer...

You know when they said delivery of the car will be 2 weeks after deposit...is there any chance of it coming earlier??? because i realise i deposit on the car on a monday and 2 weeks time will be labor day =.=

not to mention my daily car has broken down sighsssssss