Car pricing and exchange rates

Joined
Apr 7, 2004
Messages
1,177
Location
NJ
I was watching a video and it was stated a base 911 starts at $315,000 Australian while in the US it starts at $114,000. The current exchange rate is 1 US dollar is worth .69 Australian. At $114,000 US with the conversion rate the Aud base price should be about $166,000. My question is where does the additional $149,000 Aud come from. Is it taxes, Porsche feels their market will support it, transportation costs. That number seems way off.
 
Vehicles are imported by a monopoly company. Yours is probably called "Porsche Australia." Since they have exclusive rights, they charge what the market will bear.

Mercedes USA is an example, they worked hard for brand equity. You might find a w123 taxi in Africa with a tiny engine, crank windows, etc but they won't sell it Stateside because a working man's car cheapens their image. Same with station wagons. The new USPS minivans aren't badged as Mercedes for reasons that benefit both MBUSA and a government that's supposed to be thrifty.

MBUSA found competition in MB-Europe in the 1980s, people were doing grey market imports. Buy the car in Europe, drive it around a few weeks so it's "used", have a catalytic converter fitted, ship it to the states, and come out way ahead of MBUSA's premium. So they lobbied the government and got us the 25-year-old, or newer, import ban.
 
Back
Top