2010 Import Tariff - effect on pricing

[pinzvidz]

No doubt a lot of you know about the change in import tariffs come 2010 where they'll drop from 10% to 5%. In effect this should drop the pricing of vehicles imported into Australia. We should see a drop in price on Skoda product - as an example, any RS should drop by at least $1K.

For comparison, I'm basing this on what Mazda have done with their product - they say that their prices would've dropped when the tariff change comes into effect, however they've already dropped their prices in advance. An MPS is now $1K cheaper than before, and the RS falls into about the same price bracket, hence my example above.

Anyone know of any further info on this at all? Would Skoda Australia (and VGA) be applying change in price to reflect the lower tariff? I'm holding off 'til next year, hopefully to benefit from a price drop and also as I'd prefer to buy a 2010 built/compliance vehicle now that we're so close to the end of 2009.

[Psyk]

With the reductions, would manufacturers be encouraged to flow that through to the end-user?

There may be some slight price-reductions already with things like the strong aussie dollar but I don't think we'll see the full 5% flow through... Although, it may be part of a marketing/advertising campaign to lure buyers into the show-rooms.

In actual fact it might be nice to keep the pricing and make more options available to us locally, help reduce servicing costs, and hopefully free up some dollars for a business case to bring in the 'specials' like the Scirocco, or create their own special-editions...

[K1W1]

I'd prefer to see the price maintained and a couple more options added. Say leather as standard on the vRS for example. Skoda are not in the price is everything Korean end of the market so why cheapen the brand when they could just add value instead?
I think Mazda's campaign is a bit of smoke and mirrors. They are saying one thing (Tariff reductions) when actually they are using the strengthening Aus$ to fund it. It will paint them into a corner if their competitors apply tarrif reductions and Aus$ derived reductions.

[woofy]

I personally don't think everyone would like full leather standard, they could always have done that from the start. Most sports versions of things, ie RenaultSport also put the alcantara and/or something grippy in those same parts, nothing like slipping around on the corners.

[pinzvidz]

I personally don't think everyone would like full leather standard

+1 Yeah the wife and I don't like leather full stop, but if we decided on an RS then we'd just have to live with the partial leather that is standard. I love how VAG make leather an option on a lot of their vehicles.

[gareth_oau]

LOL, the govt will probably just offset the tariff reduction with an increase in luxury car tax

[K1W1]

I personally don't think everyone would like full leather standard, they could always have done that from the start.

It was only an example. I'm not a leather person either.
Lets say reinstate the retracting mirrors, add Xenon headlights (which most of the direct competition have anyway) and be daring, up the warranty to 4 years / 125,000KM.

[woofy]

Personally, I don't know why Skoda have such a weird warranty policy, they only use a 3rd party company to extend it, I would have thought a standard 5 year warranty would make people take notice, and show their confidence of quality of them.

The fact there still isn't a proper option for that, means resales will drop earlier on, and also hints that maybe VAG don't think it the brand will last 5 yrs? Maybe they could start with putting the alarm and heated seats back in as standard again, and yep Xenons should be included, I know a few who went renault etc, as they all came with Xenon standard.

[Sales @ Mentone Skoda]

The fact there still isn't a proper option for that, means resales will drop earlier on, and also hints that maybe VAG don't think it the brand will last 5 yrs?.

Woofy, the opposite is the actual truth, having been an employee of VAG australia for 7 years they are more than confident that the vehicle doesn't require a 5 year warranty. 5 year warranty's have only come into play for desperate manufacturers such as mitsubishi who instated it becuase they needed a hook after they lost Magna in OZ (who now find it impossible to retract) and Honda who were left swimming in stock when the non existant GFC put the brakes on things for a few months. In fact i think honda are still advertising 'limited' 2008 stock with 5 years warranty and we are nearly in 2010.

I'm not saying that it is right ot wrong but the general feeling i get is that VGA feel it is an omission of potential quality and reliability issue's if they make it a 5 year warrantly, it's almost admitting a lack of faith in the product and that you need this to reassure people.

I can understand though as a consumer how it could appear to be the exact opposite.

[pinzvidz]

Mr Mentone, have you heard what (if any) changes regarding pricing or features might be coming in when 1/1/10 kicks in?

[K1W1]

I'm not saying that it is right ot wrong but the general feeling i get is that VGA feel it is an omission of potential quality and reliability issue's if they make it a 5 year warrantly, it's almost admitting a lack of faith in the product and that you need this to reassure people.

More like Germanic pig headedness and a stubborn refusal to believe that there is any other way that is correct than theirs.

If that is really their attitude why do they offer a warranty at all. Surely their cars are so good that they simply don't need a warranty?

BTW. Learn your history about who introduced 5 year warranties to Australia, when and why because you are wrong in what you said above.

[gregozedobe]

BTW. Learn your history about who introduced 5 year warranties to Australia, when and why because you are wrong in what you said above.

Actually K1W1, maybe you need to go back and read what he actually said a little more carefully - he didn't say anything at all about who first introduced 5 yr warranties, just gave a couple of examples.

Please dial your attitude back a fraction, we can all play nice here in the Skoda subforum. It is good to get direct dealer input

[Sales @ Mentone Skoda]

You may be right

BTW. Learn your history about who introduced 5 year warranties to Australia, when and why because you are wrong in what you said above.

Look i would be the first to admit that i may be wrong but thats what this forum is designed for isn't it. We need to give and correct information when neceassry, if you know i am wrong, correct me!!

Everything i write here is nothing more than personal opinion and what i percieve to be the truth, it doesn't in anyway make it 100% true and factual.

My goal in being on here was to get the right advice from the enthusiasts and learn about a product I (at the moment) have little knowledge of a part from what I picked up in VW. I'm hoping everyone will make the effort to correct me when i am speaking rubbish, it's about the only way i will learn

[woofy]

I can understand though as a consumer how it could appear to be the exact opposite.

Which means their reasoning isn't sound. I think most people are well aware of why Mitsubishi do it. Honda have been offering a 5 yr warranty for some years now, when I bought my 6, I got 4 years factory (extra year included) and Honda were offering 5 yrs included in 2006. I don't think it was anything to do with the GFC recently, they have been offering an extra 2 years as optional for a long time, and more often than not it's included.

It doesn't have to be standard 5 yrs, but when VW charge 2000k for extra warranty, that looks to the customer that VAG know they are going to be up for something. Mazda charge $300 for an extra year. Honda about the same, but in two year deals.

That extra year or two makes a big difference in resales as well, the price of used cars always drops once the warranty is out.