Car companies pass on import tariff reduction

The majority of luxury car manufacturers and distributors in Australia have passed-on the long-planned import tariff reduction from 10% to 5%, introduced on Jan 1st, 2010.

For luxury car buyers that means savings of up to $50,000 on some of the most expensive models. The luxury brands to pass on the saving as retail price cuts are:

• Aston-Martin
• Audi
• Bentley
• Ferrari
• Jaguar
• Lexus
• Maserati
• Porsche
• Rolls-Royce

BMW and Mercedes have not passed on the savings, although good negotiation will yield an almost equivalent price reduction. All luxury brands will be happy to see any activity that can spark life back into the sector with most brands suffering heavily through 2009 – Ferrari sales were down 36%, Lamborghini 43%, Rolls-Royce 47% and Bentley 61%.

Note: Four wheel drive vehicles do not benefit as they have been taxed at 5% for many years. The remaining 5% import tariff will be removed in 2015.