WHY are SA Car Prices so much higher?

[KillerX]

Can someone please explain it to me? Why is it that in the US and Europe car prices are falling, and yet ours get increased 2-3 times a year. Car prices from year to year go up 20% or more. And yet in other parts of the world they are being slashed.

Who is responsible for these crazy increases? Is it goverment that see's everything as a 'luxury item' and taxes it to hell? Or is it the car companies themselves in SA?

The arugment could be that SA is a smaller market... and therefore we pay higher prices... but yet in Botswana cars are MUCH cheaper then here/

Surely if one car company in SA decided not to bump up their prices... but actually *GASP* drop their prices... and really do a great marketing campaign on it... they would sell many more cars??

 

[I am Penguin]

Can someone please explain it to me? Why is it that in the US and Europe car prices are falling, and yet ours get increased 2-3 times a year. Car prices from year to year go up 20% or more. And yet in other parts of the world they are being slashed.

Who is responsible for these crazy increases? Is it goverment that see's everything as a 'luxury item' and taxes it to hell? Or is it the car companies themselves in SA?

The arugment could be that SA is a smaller market... and therefore we pay higher prices... but yet in Botswana cars are MUCH cheaper then here/

Surely if one car company in SA decided not to bump up their prices... but actually *GASP* drop their prices... and really do a great marketing campaign on it... they would sell many more cars??

We are consumer whore's, willing and ready to be r4aped by any corporate bussiness in South Africa.

PS: I think we are subsidising the export product of our local car manufactureres.

 

[sox63]

As Penguin said, we are willing to pay those prices.

And its not going to change anytime soon, there are still more than enough people in SA with money to spend (or available credit) on a car, so the car makers wont be feeling enough pain to be compelled to lower their prices.

 

[JK8]

As long as their are rich people buying cars than the manufacturers are ok.
Richer people tend to be less affected by the financial crissis, they also have stand a better chance to employed through these times(depending on their industry).

I was walking around Sandton City this weekend and they had a car show throughout the centre... You could hear some people saying "look at this Jag, its only R800 000..."

So I think that even if the cars were at the same price as last years price, the average man in the street will still not buy brand new.

The bad part ofcourse will be the next 9 - 12 months... will prices drop?
I doubt that

 

[Smooth Criminal]

It's because retards keep buying it at these prices. They have no incentive to lower prices. Saffers never seem to be content with what they have, we always want more.

 

[KillerX]

I can understand high end cars being priced the way they are... makes them even more exclusive... But something like a honda or volkswagen... being pushed 20 or 30% a year... i mean wtf...

Surely... they would sell many many more cars if they dropped prices (which is utlimately what they want.... numbers first... profit second?)

So they can say.. this is the best selling car in class....

 

[The_Unbeliever]

Job protection.

 

[Bizkit87]

Job protection.

But that doesn't make any sense....

"Lets increase the price of our cars, so now less people will be able to afford it, but this will in turn assure our workers of a job?"

what am i missing?

 

[AirWolf]

Job protection.

Ahhh, the COSATU way of decreasing unemployment.

 

[Grouter]

WHY are SA ... Prices so much higher?

Thread title fixed.

 

[Fazda]

There was a thread here a couple of weeks back where someone was looking to "buy down" and asked what to get. The majority of posters were pointing him towards cars that were "only" 300k. As long as that idiotic mentality remains, we will continue to pay telephone number prices for our cars.

The Motor Manufacturers will continue to hike their prices for as long as idiots continue to pay those prices...the onus is on the SA Consumer to vote with his feet and stop paying these ludicrous prices, but that just isn't going to happen is it?

Another contributing factor is the number of people who buy on car schemes, and very often the more expensive the car, the better it is from a tax point of view. This line of buying has shot the ordinary man in the street who is not on a scheme, in the foot.

 

[sox63]

I can understand high end cars being priced the way they are... makes them even more exclusive... But something like a honda or volkswagen... being pushed 20 or 30% a year... i mean wtf...

Well, to be fair to the makers, costs increase annually regardless of the market conditions. If you think about salary increases, suppliers increasing their prices, investors ALWAYS wanting more returns than last year, etc. The guys have no choice but to increase it.

 

[Fazda]

Well, to be fair to the makers, costs increase annually regardless of the market conditions. If you think about salary increases, suppliers increasing their prices, investors ALWAYS wanting more returns than last year, etc. The guys have no choice but to increase it.

You mean that manufacturers are justified in a fixed 7% to 8 % increase every quarter, just to keep up? Bollocks!

 

[KillerX]

An example:

BMW Z4 335 BASE model in UK 37000 pounds = R483 000
Same model in SA = R682 000

I mean wtf?

 

[sox63]

You mean that manufacturers are justified in a fixed 7% to 8 % increase every quarter, just to keep up? Bollocks!

To say whether they are justified, you would have to track the PPI and see what has been going on.

But we must remember that car companies' execs have a profit priority, and with decreased volumes, the only logical way to keep profit at acceptable levels is to increase the profit you make on the vehicles that are moving from the showroom floor.

Its what I would do...

 

[Fazda]

An example:

BMW Z4 335 BASE model in UK 37000 pounds = R483 000
Same model in SA = R682 000

I mean wtf?

Then take that UK price and compare it with UK housing prices, and you will find that SA Car prices are totally arse about face!

 

[zamicro]

It is a protected industry, so there is no incentive to drop prices (or keep it in line with international prices)

 

[pjjdp]

My Citi Golf ONLY cost me R25k.


LOL

 

[AirWolf]

My Citi Golf ONLY cost me R25k.


LOL

Second-hand or purchased in 19-voetsak?

Cheapest model, brand new (without any accessories) is >R70k.

 

[krycor]

This is not limited to cars, EVERY industry in SA is raping someone else its like they all graduated from the same business school with a tub of vaseline..