New pricing system for new car sales

[dubbed]

This article may interest some: http://www.drive.com.au/Editorial/Ar...884&vf=12&pg=1

Basically the ACCC are forcing car manufacturers (and some other industries) to advertise a complete and final price of new vehicles (or products and services). This means no RRP + dealer delivery + taxes etc can be advertised solely.

As much as I always thought having a complete and final price on advertised new cars was a logical solution, I'm not too sure now as looking into it there are quite a number of areas that will be affected. Think about it - each state has different dealer and delivery charges, taxes, registration fees etc. I think only a select few offer 'Drive Away Prices' nationally.

The biggest pain will be on websites where consumers have 'Build and Price' or 'Car Configurators' to add options and accessories to determine a cost and take to a dealer. As these tools can't calculate the different fees for reasons mentioned above, most manufacturers will have no option but to pull them down.

This is coming into effect May 25.

Any thoughts?

[gerhard]

Long overdue, straightens out one of the areas of dishonesty in the car sales industry.

As for making it difficult to do Australia wide advertising, don't swallow their rhetoric - it's not hard, it's downright easy.

You can get an online car/house insurance quote by postcode, with all the variables that entails. A car only has 2 or 3 variables, not dozens.

[mikinoz]

This applies to consumer leasing for electronics etc. also. You will have to display the lifetime cost of a contract that costs you $35 a week, same as telcos do now.

[Lima]

Long overdue, straightens out one of the areas of dishonesty in the car sales industry.

Erm, what dishonesty has there been in new car pricing?

When I have asked a dealer for a final RRP figure before negotiating a sale price I have never felt I was being lied to.

That part usually comes next, haha.

[gerhard]

Erm, what dishonesty has there been in new car pricing?

When I have asked a dealer for a final RRP figure before negotiating a sale price I have never felt I was being lied to.

That part usually comes next, haha.

Dishonesty in advertising. Quoting a base model rrp and picturing a fully optioned variant. Only needs one example to prove dishonesty.....

[STV4SYT]

Hopefully it will bring an end to some of the ridiculous dealer delivery charges that have gotten out of control in recent times.

At least if the uneducated masses are comparing like for like they can now see that certain brands are more expensive than not knowing about the hidden costs til it was too late.

[Lima]

Dishonesty in advertising. Quoting a base model rrp and picturing a fully optioned variant. Only needs one example to prove dishonesty.....

Yeah, I see what you mean.

Although, I wouldn’t expect that behaviour to be completely eradicated with these new rule changes. For one thing, it could be as simple as the designer creating the ad selecting a “better” picture, rather than any intent to deceive by the dealer. Remember not everyone is a car person and therefore probably can't tell the difference anyway, and I suspect this would definitley apply to those policing the issue at the ACCC. Sure, not ideal, but also not the end of the world.

Having said that, in the example you mention, there would usually be an asterisk or some notification that the image shown was not the exact car being quoted. How many ads, brochures etc do you see with the text “overseas model shown”. Again, this is generally not a direct intent to deceive, rather a logistical issue, or possibly even design style issue driven by the manufacturer (eg, brochures must look like this the world over).

I think the idea by the ACCC has some merit, but, a) I didn’t think there was necessarily anything inherently wrong with the current advertising, that is, I’ve never felt deceived and instances like you mentioned are not usually the norm; and b) it seems as though the ACCC either hasn't thought this through properly, or given the manufacturers the required time to implement the changes smoothly. As evidenced by this article on GoAuto.

[Lima]

Hopefully it will bring an end to some of the ridiculous dealer delivery charges that have gotten out of control in recent times.

At least if the uneducated masses are comparing like for like they can now see that certain brands are more expensive than not knowing about the hidden costs til it was too late.

Yes, but under the previous pricing structure pricing was generally itemised. At least in the 3 or 4 cars I have purchased new it has always been itemised. With the new legislation requiring a single price only, how does this ensure that dealer delivery charges will not be buried completely?

I always found that with a little common sense one could pretty easily navigate around any pricing deficiencies, perceived or otherwise. I don’t think the ACCC should be implementing new legislation as a replacement for common sense.

[gerhard]

Yes, you're right about the tiny asterisk and unreadable disclaimers and the use of file photos, but that's exactly what the ACCC is eliminating.

There will be a few squeals from those whom it hurts, but none from those who were not happy with the "bait advertising" whether intentional or accidental.

I have noticed plenty of advertising with no prices since the change, but also plenty of advertising with the driveaway pricing included for new cars. There's always a "from" which is nothing sinister - everyone knows the options will cost more.

I predict it won't be too long before all the pricing is available again for each model, eg Trendline from $28000 DA, Comfortline from $34,000 DA, etc.

The dealer delivery fee will be buried from now on. Just like the import duty amount, the freght amount, the VW australia profit amount, etc. That's the whole point.

When you buy a TV you don't get told separately what the JB store is making gross, so why should you know what the dealer makes.

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I've tried looking up some new car prices for my girlfriend's parents but it's next to impossible on the 'net now. I can't even begin to compare what's in their price range!