Hello John, got a new motor?
For the majority of people the most expensive item they will ever buy in their life is a house. We looked at house prices in Australia the other week.
Then there is the second most expensive item they will ever buy and for some that is a helicopter and for others it is a cruiser. But for the rest of us it is going to be a car. So today I am looking at the price of cars here in Australia compared with the UK.
As usual with my “Cost of Living – Australia” category, the method behind my investigation is purely random (guesswork). I have checked out the prices of five new (in blue) and five used (in red) cars both here in Australia and over in the UK. The results are quite surprising.
Australia vs UK: Car Prices
The total cost of the 10 Australian cars was $288,365 whereas the cost of the similar specification cars from England was £115,029. Despite today’s exchange rate being a very low 1.93 Aussie dollars to the pound, you could have still bought the Australian cars for a whopping 23% less in England.
Here in Australia those same cars would have cost £149,411, that’s a massive £34,382 dearer than in the UK!
I must emphasise here that specifications will be different but I have tried to match these vehicles as closely as possible. I have checked they all have the same engine size, number of doors and body shape. I drew the line at checking whether the CD player was 25 W per channel or 50.
So it is a rough guide.
The biggest price difference is for the new Saab, but I have stared and stared at the specifications of both and I can’t see anything that warrants such a huge gap. Perhaps the lesson to learn here is to buy your make of car with care. Perhaps some manufacturers have a more supportive export policy to Australia.
My price comparison may not be the most accurate guide you will find but whichever way you look at it there can only be one winner in this particular case. My guide suggests that Australian cars can be as much as 30% more, as an average.
So, without a doubt, the UK has the cheapest cars.
Related posts:
- Buying a second-hand car in Australia Compared to England
- The Cost of Living in Australia: Buying Toys.
- Cost of Living in Australia: The Price of Spirits.
- Buying Your Dream Home in Australia
- The Cost of Living in Australia: Groceries
{ 27 comments… read them below or add one }
i dont understand why its so much more expensive. eg: camaro in us is 50000 here in aus its 150000. what the bloody hell?!
I think that may be because Chevrolet cars have to be imported and then converted to left hand drive here, whereas, say, Ford, Holden, Mitsubishi and Toyota for example, are manufactured here.
But still, HUGE price difference. Someone’s making a nice lump out of Camaro drivers in Aus.
Another thing : Petrol IS NOT twice the price in uk. In Edinburgh (which is one of the most expensive places in uk) its 113.8 p on average. At the current exchange rates its about $1.95 / L. Thats only 52% more than Adelaide. If you factor in the higher octane and better quality fuel that unleaded is in uk it would be even less say 49%.
Back in July 2009, when I did my original petrol price comparison, it really was nearly twice the price in England that it was here. But in those days you could get two Aussie dollars to the pound. Today, it’s all very different.
So yes, you are right. At the moment petrol in the UK is about 50% dearer than it is here. Or put another way, petrol here is two thirds the price it is in England.
What is the cost of importing a car to Australia? Do the taxes have anything to do with the huge price variations? When I import a car will I get hit with a huge import tax?
Hi Angel
I don’t know anybody who has imported a car to Australia but I did look into it briefly for someone else and the whole process does look quite complicated and expensive.
Firstly, of course, it’s going to cost you to transport your vehicle to Australia. I don’t know, maybe $5000, I’m guessing. Then I think you pay 10% GST and 5% duty and you also have to pay to have the car inspected to ensure it meets with Australian safety standards. The vehicle will also have to pass through customs and there will undoubtedly be a fee for that too. And to cap it all, I think there is a hefty tax on luxury vehicles, I think as high as 33% of its value.
So I really can’t imagine it can be any cheaper or better than buying a car locally here.
Firstly
When you say “England” all the time, i am sure you really mean the UK, although there are regional differences around the UK (Wales probably being the cheapest) the general prices around “England” (meaning the UK) are on a par.
I am British, and have been living in Australia for 5 years, and i thought i better add some light onto this, Cars that are imported into Australia, have a massive import tax on them, somewhere between 30%-40%. This is done to subsidise the local car makers down under (Ford and Holden, nothing very Australian about any of them any more) to keep the cost of local cars, artificially high, and on a level with imported cars, so basically, a tax is put on it, to stop them going under as they are 2 massive employers, and the bill for all this gets passed to you, to the end user, and its an absolute disgrace. The Australian govt. should subsidise the industry, not Johnny Random.
I looked at coming home, buying a car, and them importing it, you can do this if :
1. You have owned the car for over 12 months.
2. If less than 12 months, then the car cant have been on sale locally (ie. some special edition Nismo thing, that was never on sale here)
But, be aware, cars over a value of around $45,000 get hammered with a luxury car tax, at about 50% (inclusive of GST at 10%) so, say you buy a Porsche Boxster S, in the UK for say, 12K, you leave it in your mates garage, then want to ship it out, then it gets here, its taxed on the LOCAL cost of the same car! so you could import your 12 grand car, but here its worth about 50 grand, thats MORE than 45K ish, and you would be taxed $25,000 to import it (50% of the cars local value) this is done to try to make EVERYONE buy an Aussie gas guzzler, and again, its an absolute disgrace.
It doesnt stop there though, fuel has no regulatory body here, and its the norm to see petrol costs double per litre on holiday weekends etc, or whenever however they wanna change it. Fuel is about $1.30 a litre, but at Christmas expect to see that shoot up to closer to $2 or whatever they want. The worse thing about Australia motoring though, is the way people drive, i was horrified when i first got here, with big sign saying “keep left unless overtaking” on 4 lane highways, with cars whizzing past me, left and right. People here dont have the “unspoken language of the road user” that there is in the UK, no nod, no smile, no lift of the finger from the steering wheel to let you know its ok, no one EVER lets anyone in, no one ever says sorry, the speed limit is a mere suggestion, EVERYONE tailgates, and to get into someones lane, you dont slow down and drop in behind them, like us, here you drop a cog and cut them up, that is, people here are taught “if you need that lane, go into that lane, nevermind if your infront and they have to swerve” and they really do not get it here, they dont.
Standard fuel here, is like a litre of knackers piss, and starts at 91 RON, i use 98 RON although thats some 50c more a litre, to put it into perspective, i have a Mazda 99 NB Hardtop, with about 160,000ks (100,000 miles) on it, the same car in the uk would ahve been about 3 grand, here it was 17, yup $17,000 for a 10 year old MX5 with 100,000 miles, thats about 11,000 pounds
That would never happen in the UK
Hi Duncan
Welcome to my blog and thank you for taking the time to give us such a comprehensive understanding of the rigmarole of trying to import a car into Australia……. which is just as I thought, too expensive to bother with.
I can’t say I agree with some of your other points though, or even the idea that it’s a disgrace to whack such a large import tax on cars so that local cars can be sold at an artificially high price. Your argument that the government should subsidise it not the end user doesn’t really work.
If the government subsidise it, they’ll get the money from the tax payers. So the Australian people will still be doing the subsidising, except it will be all of them not just the ones buying the cars. I can’t really see how that is any fairer.
As for petrol prices, I’ve written a post about that, so if you take a look at the two images I’ve used to describe petrol prices in Australia, you’ll know that I kind of agree with you. You can see my post about Australian petrol prices here.
But I have never seen them double! We are just nine days away from Christmas and I have just bought petrol at $1.22 per litre. Maybe it will go to $1.35, perhaps $1.40 per litre by Christmas weekend, but I bet no more than that.
But I agree almost entirely with everything you say about Australian drivers, I’ve only lived here three years and I still do that waving people on thing, or flashing lights and waving to let people go in front of me, and every time I do it I feel like a bit of a twit. Because no one’s ever done it to me and when I do it, no one does anything back. Yes, I think it’s a British thing.
But I actually think there is also a double edged sword here, if you see what I mean. Because I have also never seen road rage in Australia. No one cares when they are cut up. No one moans when you push in front of them. So whilst you don’t get the smiley, wavy polite drivers, you also don’t seem to get the nasty aggressive tooting their home and swearing drivers.
I know it does happen here, road rage, but it seems very very rare.
As for UK/England, yes, I do mean the same thing. I use the different words just so that I’m picked up on the search engines whatever people search. That’s all.
Cheers
Bob
Duncan Thanks for all the info on importing very helpfull
Our used cars are so over priced especially Audis BMWs ect
The price of an Audi R8 is over $100k cheaper in the UK
As for drivers in Australia I have to say Perth drivers are the most polite we do all the nice things like let people in ect
I have noticed people with Queensland plates are quite rude and wont let you in ect I asked a freind who lives in Queensland about this and he said yes it is true
So now I dont let in Queensland drivers as they are so rude
I have to agree with Duncan and Wayne about the rip off price gouging here.
As for the the driving, you should try driving in Sydney.
Terrible driving here, often quite dangerous. If you honk at someone for causing you to take measures to avoid a collision you’ll normally be greeted with the middle finger.
There is an art to honking, a quick honk is like saying “excuse me please” but a long honk is like saying “Oi, you! Move it!”
I think, by and large, you can still get away with a long honk here in Brisbane, but elsewhere? Too dangerous. In Sydney, what gets the middle finger? A long honk or a short honk? I need to know these things.
If you think you’re going to move to Australia and live cheap, think again! If you already live here and think you’re getting a good deal, then maybe it’s time to question a few things.
House prices, supermarket prices, and car prices for old model junk is unbelievable. I have friends from Europe/ UK and the US that ask me why it’s so expensive here and look constantly surprised.
Cars that would go for as little as 3000 pounds say $6000 Australian
they still want about $20 grand here and don’t lets get started on tax comparisons.
We are getting ripped off from A to Z in Australia and feel disappointed for the nation. Time we asked more questions rather than just wear it!
I just hope I can stay on the right, I mean correct, side of the road…..Ive been driving here in the US since 1978 and I have lately been trying to imagine making left and right turns from the other side. Seems weird. Do y’all ever see new immigrants going on the wrong side of the road? If not, you may see one in QLD in a few months…..
Adam
You need to read my post about the hard yakka and then come back here and tell us all how sorry you are and you didn’t realise that Australia really is a cheap place to live after all. (New and second-hand cars aside, of course.)
We will still be here when you get back
I know what you mean, I nearly killed myself and some others in France when I was on a day trip from England. It’s easily done. After that incident, I developed an easy to follow system.
Assuming you are driving a right-hand drive vehicle when you are here in Australia, periodically look out of YOUR drivers door window. If you don’t see the other side of the road, but you do find yourself looking at the sidewalk/pavement……
AAAARRRRGGGHHHH!
Time to hit the breaks.
The trick to driving on the opposite side of the road (whether in a right hand car on the left side or vice versa) is to drive as close to the kerb as possible and let the other cars miss you. I drove an American car in the UK for 8 years (both in Scotland and England). I never had an accident or ticket. What I learned was that I needed to be a lot more patient with myself and other drivers. I always gave way. Err on the side of courtesy, and you shouldn’t have too many problems. The most difficult thing I deal with when driving in other countries are the parking lots. I get disoriented in them, especially when I have manouvered into an awkward parking space.
Thanks for the advice Angel, I’ll get some of those curb (kerb) feelers, that will let me know I am on the correct side of the road. Kinda like training wheels for a Yank
Dave
My perrents broght a german car here in australia and picked it up in germany at the factroy and try driving a right hand drive car on the right hand side of the road you need a passenger to help you to go on and off freeways for 3 months 18,500 km of driving around europe and they had no problem driving in the uk because they drive on the same side of the road as australia. They did go around a roundabout in Italy around to the left of the roundabout at night. Here in Australia you can drive a left hand drive car but it has to be around 30 years old they are normaly american cars but they can be converted to right hand drive.
Hi Sean
Well yes, I have driven a right hand drive car on the right hand side of the road and I thought it was alright. Just keep the left of the car to the left and hug the right side to the curb. Oh, and don’t drive directly into oncoming traffic.
Easy!
But you can’t beat driving a left hand drive car on the right-hand side of the road and the right-hand drive car on the left-hand side of the road.
Either way, clunk click.
Cheers
Bob
The Chevrolet Camaro is imported to China and taxed for more than 50% but the price is only two thirds of that in Australia. I simply don’t understand. Are people here rich enough who don’t mind throwing money away for an overpriced American car?
Well, I suppose the short answer is yes, some are.
Not me though, so I sometimes wonder why I bought my second hand Jeep, spares are through the roof. I should have got a Holden.
That’s one of the reasons I will stay in Southern California and ditch 3 great job offers in Australia. Cost of living.
The climate is the same, perfect pacific mild that is similar to mediterranean, dry and sunny.
Our house is 2 miles form the beach in South Orange County (Laguna Niguel), I paid 680K few years ago. It would cost at least 2-2.5Mil in Sydney North Shores and beaches (Orange County of Australia). Besides, try to find 3000 sq ft with pool, 4 car garage and nice yard house in North Shores! Lucky to find something with more than 1 bathroom (what? you two, your kid and your guests all share the same bathroom????? Awkward!)
The investment/ future retirement (I wish it was coming much sooner!) house in prestigious, beautiful Scottsdale Arizona on 2 acres, way cheaper than California, is average for the area, but it would be considered a mansion and cost certainly 7 figures somewhere in similar areas of Australia..
My Ford F-350 diesel pickup that I paid 48K for brand new here in The US, costs as listed around 120K AU$ in Australia and nearly impossible to find.
Our Porsche Cayenne that we paid 43K for here in the US costs 90K plus in Australia.
I am not going to list 2 Ducatis, 2 KTM off-road bikes and 6″ lifted, for off-road use only, Jeep Grand Cherokee and some other toys. Yes, even someone without trust fund, Daddy’s money, someone who has to work for living, can afford all that!
Again, maybe not is bad places ike New York or Chicago.
Well, we may have to work longer and harder, but I would rather work hard and long, and then spend quality time lounging with my husband in my nice house or exploring outdoors and getting adrenaline rush playing with off-road toys than working easy and then wasting my life hanging out in local restaurants and smoky clubs and not being able to leave the city in the direction I want, not the direction where everyone is directed to go (well, by mass transit if you will).
The wages are roughly the same after conversion. 1US dollar is ~1.05AU$. At least in my area (engineering).
You do the math.
I don’t know from what part of the world’s perspective it sounds great to move to Australia, but I will stay right here, roaming between Southern California and Arizona, and let someone else take my great job offer in Sydney.
There’s more to life than toys and one thing I have noticed and mentioned many times about living in Australia, is the free stuff. Some of the best things in life are free and Australia is full of things you can enjoy for free.
It sounds to me a bit as though your love for your material possessions is preventing you from enjoying a new life experience. By the way, I know one very sweet old couple who moved here from California many years ago, because they couldn’t stand the rise in violent crime in that part of the USA.
They love living here and feel much safer. So there is someone who thought it was a great idea to move to Australia from your part of the world, I suspect there are many parts of the world where this country is a very attractive prospect.
JUst a wuick abservation: if you guys had as much driving experience as we do here in USA, driving should be a second nature, regardless what side of the road you are on and where your steering wheel is. I travel to “left-handed” countries a lot (UK, NZ) and I rent a car every time (sorry, Dude, no mass transit). I have no problems whatsoever to switch to left side and back to our right side. A long time habit of driving large SUV helps to navigate that rig through any traffic and clear spaces within an inch or two to spare.
You just need to drive more.
That’s quite funny, we “need to drive more”. Do you know how big Australia is? We do clock up the clicks here, you know.
Dear Bob and all, very interesting thread and discussions. I notice the comparison of car prices was done in 2009, does it still stand for 2011/2012 ??
Well, I haven’t done any updated research, but I can’t imagine much has changed.