Why are cars more expensive in SA?

[DOOMIE61]

I really don't understand this, i was looking around for an 08 m3 convertible on SA Autotrader site just to find there close to a million Rand!!!!:eek::eek: when i compared them to UK Autotrader there 40.000 pounds for the same thing.. so why is it that in SA its double the price??

SA Autotrader: http://search.autotrader.co.za/www/cars_advert?country=ZA&sort=5&currency=ZAR&modelexact=1&make=BMW&model=M3&min_pr=&max_pr=&x=49&y=4&id=200850185426595

UK Autotrader: http://search.autotrader.co.uk/es-uk/www/cars/BMW+M3/Ne-2-4-5-6-7-8-27-44-49-53-61-64-67-103-133-146-236,N-240-4294966389-4294967202/advert.action?R=200851325586200&distance=90&postcode=sm44eb&channel=CARS&make=BMW&model=M3&min_pr=&max_pr=&max_mileage=&vehicleYearOfManufacture=2008&vehicleRegLetter=08

[kingmonty]

The entire industry is protected by the government in exchange for 'not cutting jobs' and being able to keep their prices artificially inflated.

[bex.cpt]

The reason cars are more expensive in SA is because the consumer i.e. YOU and ME are prepared to pay more for it. 80% of people buying new cars buy them with the Car Allowance(I am not 1 of them) they receive so they don't really care about the cost cause its a tax write off. Survey's has proven this. When a new model BMW (My car of choice) is released SA buyers prebook them and are willing to pay a premium to be top of the list. So the industry responds buy hiking prices because they know their terget market will just pay the premium to have the car. The trickle down effect is when the car become PreOwned they reflect the price paid when purchased new.

Bottom line is WE make the prices of cars and as long as we are willing to pay the ridiculous prices they will prevail.

Sad but True

[Sackboy]

They say the standards are different too. They have to comply with local laws and quirks, like right hand drive.

[Dohc-WP]

They say the standards are different too. They have to comply with local laws and quirks, like right hand drive.

Uk is also a right hand drive country :rolleyes: ! atleast we dont have to pay pollution tax like they do ?

[Hosehead]

The day they dump the car allowance for good will be a good day for car affordability. Once there's no tax benefit people won't dig deep in their pockets.

[kingmonty]

They say the standards are different too. They have to comply with local laws and quirks, like right hand drive.
ROFL: UK is right hand drive as well..... as for local laws: we aren't policed by law to maintain our cars (you can buy and sell a car without even a roadworthy and you can easily drive it without even so much as a sideways squint from the traffic dept), nor do we pay congestion taxes or taxes on our vehicles that are not fitted with catalytic converters. If anything, our laws are rather relaxed - even the SABS safety tests conducted on the vehicles sold locally are not nearly as thorough and comprehensive as Euro NCAP.

[Devill]

Its also because we mine the steel ore here and then ship it to some other countries like china, US, France etc for them to refine it and use it in manufacturing processes. Then we either buy the refined steel back at silly prices or we buy their products and pay a freak load of import tax....:mad:

[Milano]

If you import your stolen car back from Botswana then they are much cheaper than the local 2nd hand car market.

[Smooth Criminal]

The reason cars are more expensive in SA is because the consumer i.e. YOU and ME are prepared to pay more for it. 80% of people buying new cars buy them with the Car Allowance(I am not 1 of them) they receive so they don't really care about the cost cause its a tax write off. Survey's has proven this. When a new model BMW (My car of choice) is released SA buyers prebook them and are willing to pay a premium to be top of the list. So the industry responds buy hiking prices because they know their terget market will just pay the premium to have the car. The trickle down effect is when the car become PreOwned they reflect the price paid when purchased new.

Bottom line is WE make the prices of cars and as long as we are willing to pay the ridiculous prices they will prevail.

Sad but True


The day they dump the car allowance for good will be a good day for car affordability. Once there's no tax benefit people won't dig deep in their pockets.
^^What they said. As long as people are willing to pay, there's no reason for prices to drop. Car allowances, as great as they might seem to the individual, have a large effect on the whole.

[adamr]

bottom line is we being ripped off .... and to boot because the previous M3 model was a hit, they feel its right to hike the price to almost a bar. And yes people will still buy them. In 2006 the M3 convertible was R610k ... the previous shape of course ...

There have been steep price increases in a couple of months ... where i paid R740k in May for my car, the new price is now R820k, not even a year ....

second hand though you can get them far cheaper if you are looking for a manual that is ....

EDIT: that price of R979k the dealer will not sell that car in a hurry thats for sure ...

[The_Librarian]

D I S G U S T I N G

Ppl without a car allowance get the short end of the stick.

[.Froot.]

My dad gets a car allowance that allows him to buy anything up to X amount. Yet he buys a car worth half as much and pockets the rest of the money for use on better things.

[ghoti]

The car industry is feeling a 20% drop in sales. Good. I hope the industry in South Africa chokes. The car retailers are like the banks and the telecoms companies. Screwing the consumer over.

[.Froot.]

The car industry is feeling a 20% drop in sales. Good. I hope the industry in South Africa chokes. The car retailers are like the banks and the telecoms companies. Screwing the consumer over.

Yet car prices are going up because of the weakened exchange rate...

[The_Librarian]

The car industry is feeling a 20% drop in sales. Good. I hope the industry in South Africa chokes. The car retailers are like the banks and the telecoms companies. Screwing the consumer over.

http://mybroadband.co.za/vb/showthread.php?t=153348

27% down (December only).

We will see more data after the end of January, will be interesting to watch.

[adamr]

Yet car prices are going up because of the weakened exchange rate...

that and also other factors, like the steel price (steel is more expensive right?)... im on a car forum and noticed the specific car the OP talked about, the price has increased in both the UK and US ...