Pricing returns to car brand websites
BY TERRY MARTIN | 9th Mar 2010
Virtually all car brands, bar those offering a national driveaway price for their vehicles, removed pricing from their websites last May when an amendment to the Trade Practices Act made it compulsory for car companies to advertise the full and final price – and banned the previous practice of listing a recommended retail price with a rider that statutory and dealer delivery charges would cost extra.
The Australian Competition and Consumer Commission (ACCC) vowed to prosecute car companies that failed to comply with the new ‘clarity in pricing’ legislation, despite concerns raised at the time with issues such as the disparity in state fees and taxes and insurance premiums.
In response, the Federal Chamber of Automotive Industries (FCAI) has, in partnership with many of Australia’s leading car companies, created an online calculator that can arrive at a driveaway price – and still include the RRP – based on information including the postcode where the vehicle will be registered, and whether it will be registered for business or private use.
“The price calculator is a real step forward for new-car buyers,” said FCAI chief executive Andrew McKellar.
“This online tool means customers no longer have to add up all the different state and federal taxes, as well as dealership and insurance charges, when they are comparing new cars.
“This is a commonsense approach and makes it easier for new-car buyers to conveniently compare different models online.”Mr McKellar added that it enabled customers to receive “a good estimate” of the driveaway price, based on where they live, before visiting a showroom.
“This is another measure that we hope will provide private buyers with renewed confidence to return to the market in greater numbers,” he said.
Only about half of the automotive brands operating in the Australian new-vehicle market have adopted the FCAI’s system, although these include the biggest-selling brands – including eight out of the top 10.
Some individual brands, including Mazda and Nissan, have developed their own online calculator.
Mazda Australia public relations manager Steve Maciver told GoAuto there were two reasons behind its decision to develop its own calculator.
“The first is that we believed that it was important to understand and manage our vehicle pricing in-house rather than outsource it,” he said. “Given that retail pricing is core to our business, we should have a full understanding of how it works and take full responsibility for it.
“The second was timing as the FCAI calculator was not going to be ready until Feb/March 2010. Mazda didn't want to wait that long as we were keen to give our customers transparency as soon as possible.”Nissan Australia head of corporate communications Jeff Fisher said: “We developed the program early for transparency and for customer clarity, and because we already possessed the internal resources and expertise.”A check on Toyota Australia’s website, which previously listed the national RRP before the new legislation came into force, shows how convenient the online calculator can be for prospective buyers.
All that is required for an instant driveaway price – listed underneath the RRP – is the model variant, colour choice, intended usage (business or private) and the postcode.
Based on the registration of a new Aurion, the fine print below the pricing makes it clear that the driveaway price shown includes 12 months registration, 12 months compulsory third-party insurance, a “maximum” dealer delivery charge, stamp duty and metallic paint (where applicable).
It is also based on “the vehicle being garaged in the postcode entered, and on the owner being a ‘rating one’ driver aged 40 with a good driving record.
Furthermore, the fine print makes it clear that the “actual” driveaway price may differ “depending on your individual circumstances, including, in NSW and Queensland, your choice of insurer”.
As it has done at least since the new legislation came into effect, Toyota also recommends that the buyer talk to his/her local dealer to confirm the price “that is specific to you”.
It also covers changes in statutory charges with a “current as at (date)” footnote.
