[MO3]

BMW is pursuing hundreds of Australians in bankruptcy proceedings over luxury vehicles collectively worth up to $18 million, as dreams of enjoying opulent lifestyles crash.
The social aspirants now face losing their luxury vehicles and possibly their homes to repay massive debts to car financing giant BMW Finance.
The company took 226 Australians to court last year, up almost 37 per cent on the previous year, while overall national bankruptcy figures remained stable. A further 21 actions have been launched this year.
BMW Finance offers loans for all makes of luxury cars under several schemes, including a fixed instalment scheme that ends with a big "balloon", or final repayment.
One Victorian man owes the company $167,000, while a Queensland man owes $190,000 for a car loan he could not afford.
The popular BMW X53 diesel executive four-wheel drive sells for about $114,000, while the BMW 520d sedan is about $100,000, but the company lends money for other makes, including an entry-level Lamborghini Gallardo LP550-2 at $400,000.


Read more: http://www.news.com.au/money/money-m...#ixzz1ERijuWZO

[Samoht]

What do we expect, I blame the Australian government friggin cant do anything to manage af reduce the high cost of living.. A) high rba cash rate and wholesale funding cost leadig to Car finance rates of 9-10% vs US 3%- B) fcuking taxes and duties C) high housing cost 6x income and thats before tax and servicing, fir every one dollar you borrow you end up paying $2 fcuk that and D)...well might as well include high cost of doing business and greedy dealerships.

funny how nice sunny beaches will allow one to get raped repeatedly here..

[John_01]

As much as I hate Australian taxes on cars, its not the govt's fault that people get themselves in this kind of financial strife.

[MO3]

I like this comment.

"Terry Posted at 3:30 AM Today
The Australian consumer should go after BMW for fraudulent lending practices and price gouching. Why is it, that BMW can sell BMW's in America for $35,000.00 and the exact same car in Australia is $75,000.00? Maybe the tables should be turned? Seriously, we should sue these companies whom have found it acceptable to take advantage of the Australian consumer. Same goes for Mercedes. A new S-Class in America is about $70,000.00, same car in Australia is almost $200,000.00. Drive the freeways around Los Angeles, it seems everyone is driving a new BMW, Mercedes or Porsche. It looks like the land of plenty and if BMW and the likes can sell their cars in America for such a price, then they should be able to do the same here. And if it's because of our government and taxes, well that should be changed too. By the way... speaking of, it's not just the Germans. A new Hyundai I45, which on the low end is: $32,000.00 can be found in America for about $18,000.00 (brand new) It's time the Australian Government step in and if they're not able to do it, then we should vote them out of office and find people who do care about the Australian people."

[sbce90]

They didn't follow the formula.

[Stuart@BMRAutowerkes]

Originally Posted by SBC

They didn't follow the formula.

lol.

It's noones fault but their own.

Now I'm crossing fingers that some repossessed 335i E92s will be flooding the market cheaply now

[MO3]

Originally Posted by SBC

They didn't follow the formula.

That formula should be included in the fine printed disclaimer.

[Jeef Beef]

Originally Posted by MO3

I like this comment.

"Terry Posted at 3:30 AM Today
The Australian consumer should go after BMW for fraudulent lending practices and price gouching. Why is it, that BMW can sell BMW's in America for $35,000.00 and the exact same car in Australia is $75,000.00? Maybe the tables should be turned? Seriously, we should sue these companies whom have found it acceptable to take advantage of the Australian consumer. Same goes for Mercedes. A new S-Class in America is about $70,000.00, same car in Australia is almost $200,000.00. Drive the freeways around Los Angeles, it seems everyone is driving a new BMW, Mercedes or Porsche. It looks like the land of plenty and if BMW and the likes can sell their cars in America for such a price, then they should be able to do the same here. And if it's because of our government and taxes, well that should be changed too. By the way... speaking of, it's not just the Germans. A new Hyundai I45, which on the low end is: $32,000.00 can be found in America for about $18,000.00 (brand new) It's time the Australian Government step in and if they're not able to do it, then we should vote them out of office and find people who do care about the Australian people."

BMW brochures that are sent to our mailboxes have a very extensive price list - it gives the base car price, then price with LCT, then price with GST.

I shall keep the next one I get and compare the 'base price' us Australians get charged with the prices in Car and Driver magazine than I bought when I was in LA.

[Samoht]

Originally Posted by SBC

They didn't follow the formula.

Haha gd one!!

It's the governments fault!! Haha if they bailed out over leveraged property developers and all by reducing stamp duties, Fhog, etc... Nah I am not going to continue j am just taking a piss at them.

It seems every one is worst off than our US counterparts. No wonder they want to 'defend' their way of life!!! Arrrgh infidels!

[Drawn05]

Originally Posted by Jeef Beef

BMW brochures that are sent to our mailboxes have a very extensive price list - it gives the base car price, then price with LCT, then price with GST.

I shall keep the next one I get and compare the 'base price' us Australians get charged with the prices in Car and Driver magazine than I bought when I was in LA.

I have had this discussion on many a forum. I dont think BMW Aus. sets the price, I believe that is done by the parent company. Of course there is some mark-up done locally, but its not 2x the US price.

The US prices reflect the huge competitive nature of their car market. Here there seems to be an unwillingness for the imported marques to compete against each other, almost to the point of collusion. An R32 Golf is around the same price as a 135i in the USA/UK.

That said, prices for BMWs are still cheaper than they ever were in Australia, as in the past 25 years the tariff for imports has dropped from 57.5% to 5%.

A 1988 E30 325i when new cost $74,500 (w/o on roads). In 2010 terms that would be like paying $145,000 (according to the RBA).

[320beemer]

I got a quote for a new 2010 320I to replace the current one, which had left a sour taste in my mouth
I got quoted just over $70,000 for a new one and was offered $22,000 for mine.
In 4 years this means I would have lost over $30,000. The explanation given by the salesperson was that buyers in the secondhand dictate the prices. He didnt like the response that buyers of new vehicles should be able to dictate a reasonable buying price.....
This means that the cost of the 320I has risen excessively in recent years, and with technology increassing in the local market, brings a comparable car at 2/3 the cost of the 320I........

[MO3]

Originally Posted by 320beemer

I got a quote for a new 2010 320I to replace the current one, which had left a sour taste in my mouth
I got quoted just over $70,000 for a new one and was offered $22,000 for mine.
In 4 years this means I would have lost over $30,000. The explanation given by the salesperson was that buyers in the secondhand dictate the prices. He didnt like the response that buyers of new vehicles should be able to dictate a reasonable buying price.....
This means that the cost of the 320I has risen excessively in recent years, and with technology increassing in the local market, brings a comparable car at 2/3 the cost of the 320I........

You can still buy a 2010 320i with 6-10k kms on the clock for about 50k. So why do you have to pay 70k for a new one?

You can also get about 28-30k for your car privately.

[orey]

226 isnt that many tbh.

ide say thats a rather small portion of bmw owners.

i would like someone who has a better grasp on the lease/buy/finance argument to weigh in aswell.

[MO3]

With protests going on everywhere around the world, we should have one here demanding to reduce BMW's prices.

[Chris.G]

Originally Posted by MO3

With protests going on everywhere around the world, we should have one here demanding to reduce BMW's prices.

YOU JOKING! WTF!

Think about it for a second, if we protested and BMW Aus listened to our chants do you know what will happen. They will reduce the prices of all BMW's and i hate to say it...ALL MUZZUS will be able to snap up a 3er brand new instead of second hand. Think of our roads, oh dear God, don't let it be.

[MO3]

Originally Posted by Chris.G

YOU JOKING! WTF!

Think about it for a second, if we protested and BMW Aus listened to our chants do you know what will happen. They will reduce the prices of all BMW's and i hate to say it...ALL MUZZUS will be able to snap up a 3er brand new instead of second hand. Think of our roads, oh dear God, don't let it be.

If BMW reduced their prices, all other companies would follow suit. Let's say that BMW reduced their prices by 50%, other companies would reduce their prices by 50% as well. So instead of buying a BMW for $35,000, Mr. Muzza would prefer to buy a brand new Toyota Camry or a Subaru for $15,000 drive away.

[Samoht]

Originally Posted by Chris.G

YOU JOKING! WTF!

Think about it for a second, if we protested and BMW Aus listened to our chants do you know what will happen. They will reduce the prices of all BMW's and i hate to say it...ALL MUZZUS will be able to snap up a 3er brand new instead of second hand. Think of our roads, oh dear God, don't let it be.

Oh yeah, now it all makes sense now!

[woosh]

GMs and Fords aren't as price-protected in USA/Canada, so why should they be here?

[Jeef Beef]

Originally Posted by Drawn05

I have had this discussion on many a forum. I dont think BMW Aus. sets the price, I believe that is done by the parent company. Of course there is some mark-up done locally, but its not 2x the US price.

The US prices reflect the huge competitive nature of their car market. Here there seems to be an unwillingness for the imported marques to compete against each other, almost to the point of collusion. An R32 Golf is around the same price as a 135i in the USA/UK.

That said, prices for BMWs are still cheaper than they ever were in Australia, as in the past 25 years the tariff for imports has dropped from 57.5% to 5%.

A 1988 E30 325i when new cost $74,500 (w/o on roads). In 2010 terms that would be like paying $145,000 (according to the RBA).

There's is a certain amount of markup but like you said, definitely not double. A 135i is $35k RRP in the US which is literally less than half of what it costs here. The massive amounts of pricing competition in the US car market definitely forces BMW to cut into their profit margins

But you do see the effect of LCT kicking in, a 740i in the US is $71k while here it's close to $200k. That is quite a disparity.

[cruvon]

well, guess all those auto debt traps are because car ownership is being made such a big deal here I guess compared to the US, with us being slugged with neck breaking prices for vehicles that are not really a big deal in the US. If cars deemed as luxury goods here were priced reasonably as in the US I would think a lot of time and money spent on paying off cars and luxury goods would be best spent on promoting the entrepreneurial spirit within people with luxuries just being a side to be enjoyed.
What I don't understand is say for an average base IT salary of for example 100K, in the US you could get a decent place to live for 200-300K, a BMW for 35K or an M3 for 70K if you stretched it whereas here on an equivalent average salary we are slugged with a base model 3er for 70K or an M3 for 170K, 600-700K minimum for a base starter house and extraordinarily high cost of living be it at the supermarkets, clothes etc....factor in that people would spend a big chunk of their energies paying off vehicles and overpriced property which are basic necessities rather than spending that money in profitable business pursuits is no wonder we have so many people sore about how bad high prices are for morale and keeping the best talent within Australia rather than have them go off packing to the Queen's own land and to the land of milk and honey.
No doubt the salaries here are equivalent to what you might earn in the US to a certain extent but factor in cost of living and we don't stand a chance.

[johnnydad]

Originally Posted by cruvon

well, guess all those auto debt traps are because car ownership is being made such a big deal here I guess compared to the US, with us being slugged with neck breaking prices for vehicles that are not really a big deal in the US. If cars deemed as luxury goods here were priced reasonably as in the US I would think a lot of time and money spent on paying off cars and luxury goods would be best spent on promoting the entrepreneurial spirit within people with luxuries just being a side to be enjoyed.
What I don't understand is say for an average base IT salary of for example 100K, in the US you could get a decent place to live for 200-300K, a BMW for 35K or an M3 for 70K if you stretched it whereas here on an equivalent average salary we are slugged with a base model 3er for 70K or an M3 for 170K, 600-700K minimum for a base starter house and extraordinarily high cost of living be it at the supermarkets, clothes etc....factor in that people would spend a big chunk of their energies paying off vehicles and overpriced property which are basic necessities rather than spending that money in profitable business pursuits is no wonder we have so many people sore about how bad high prices are for morale and keeping the best talent within Australia rather than have them go off packing to the Queen's own land and to the land of milk and honey.
No doubt the salaries here are equivalent to what you might earn in the US to a certain extent but factor in cost of living and we don't stand a chance.

You might need to look elsewhere than at a skilled white-collar worker's situation to understand the disparity?

[cruvon]

Originally Posted by johnnydad

You might need to look elsewhere than at a skilled white-collar worker's situation to understand the disparity?

well, just speaking for the profession am in which I guess offers a best case comparison to easily tradeable work skill salary comparisons across countries but guess it would apply similarly to other professions or work lines too?