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Originally Posted by cs123
10% tariff, we're down to around $79K. Freight, let's be generous and say it costs $10K more for us to freight a car than it does the USA. $69K.
Still a big difference that I can't account for.
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It is related to sales volume, and lack of it here in Australia compared to the USA.
The price of a car has to cover the bulk of the companies operations - not just the car itself. Costs like marketing, advertising, accounting and general business functions, spare parts inventory, ongoing technician training, warranty, plus more that I wouldn't know about.
All of these costs are covered by sales revenue. Look up how many X5's BMW sell in the USA in a typical year compared to here, that'll go a long way to explaining the price difference.
Having said all that, I agree the price difference is probably still bigger than it needs to be.