Buying a Car Down Under. Beware the Hidden Taxes

[Aussie Prick]

It is not crappy lah.. Perhaps ya too high class to discuss on matters. As long as you have the car jack or ramp and a big garage and have the attitude to get ya hands dirty. Everything is easy. It is not uncommon for ppl to hv a workshop in their garage for their hobbies and handi stuff.

This is why i always said.. not all ppl can fit into the Australia environment. Getting hands dirty is 1st step, be humble and adapt are next.

I can go down to Autozone and buy a car jack for 1/4 of what it costs there. But what for? I can do that If I wanted to, but what for?

No one in the US does that, unless YOU CANT AFFORD 10 USD

If you people are doing that, it only shows how bad and low quality your lives have become.

I have not even mentioned your A$ 250 cost to change motor oil. If you wish to discuss how many 1000s X more than the US this costs, by all means keep it up.

Oh I wont discuss how many more 1000s X more expensive it is to tune up, change tires, brakes or do any other routine maintenance Australia is than the US.

And then I wont discuss why the same cars in the US are 300% cheaper than they are in the US to begin with.

Thank you for showing us how truly horrible it is down under.

 

[Porfirio Rubirosa]

grass is always greener elsewhere Axe...that is why i told you in another thread no point in making so many comparisons and saying "so where the bloody hell are you"

This is why i always said.. not all ppl can fit into the Australia environment. Getting hands dirty is 1st step, be humble and adapt are next.

 

[axe168]

I am taking about independence and the ability to accomplish something big or small.. on the other hand, you are buried with all the "cost" related stuff..

There are things that money cant buy.. your family time, your parenting experience and your happiness.

Like i always said : Ya the Champ ! champanzese

I can go down to Autozone and buy a car jack for 1/4 of what it costs there. But what for? I can do that If I wanted to, but what for?

No one in the US does that, unless YOU CANT AFFORD 10 USD

If you people are doing that, it only shows how bad and low quality your lives have become.

I have not even mentioned your A$ 250 cost to change motor oil. If you wish to discuss how many 1000s X more than the US this costs, by all means keep it up.

Oh I wont discuss how many more 1000s X more expensive it is to tune up, change tires, brakes or do any other routine maintenance Australia is than the US.

And then I wont discuss why the same cars in the US are 300% cheaper than they are in the US to begin with.

Thank you for showing us how truly horrible it is down under.

 

[Porfirio Rubirosa]

ironically you sure love to brag about your ability to make things happen in Oz...quite the paradox Axe...oh and you don't have to point out the obvious factors in seeking life wellness and happiness

I am taking about independence and the ability to accomplish something big or small.. on the other hand, you are buried with all the "cost" related stuff..

There are things that money cant buy.. your family time, your parenting experience and your happiness.

 

[axe168]

ironically you sure love to brag about your ability to make things happen in Oz...quite the paradox Axe...oh and you don't have to point out the obvious factors in seeking life wellness and happiness

I think i am independent by getting my hands dirty.. and learning the local ways and be adaptable.. Well, I'm not sure if this is bragging..

 

[Porfirio Rubirosa]

look i am not trying to pick a quarrel with you...just that i find your attitude so extremely negative, bitter and biased with respect to singapore...good that you appear to have found your "independence" in Oz...but that does not necessarily mean you cannot find it elsewhere, singapore included...

I think i am independent by getting my hands dirty.. and learning the local ways and be adaptable.. Well, I'm not sure if this is bragging..

 

[axe168]

look i am not trying to pick a quarrel with you...just that i find your attitude so extremely negative, bitter and biased with respect to singapore...good that you appear to have found your "independence" in Oz...but that does not necessarily mean you cannot find it elsewhere, singapore included...

To reiterate my statement.. all of us must be thankful to our country-of-birth.. the education, stability and security etc. No one should belittle SG..

I told my son the other day.. you have to learn the basis process - read and write or know the laws.. B4 trying to be rebellious Rebellious attitude can be good, if only we can justify ourselves accordingly.

SG is a great country for most 80% commoners.. if ya the top 20% you'll be better to explore the big jungle.. conduct soil test, detect minerals and find some oil or diamonds along the way.. heehee.

 

[IWC2006]

look i am not trying to pick a quarrel with you...just that i find your attitude so extremely negative, bitter and biased with respect to singapore...good that you appear to have found your "independence" in Oz...but that does not necessarily mean you cannot find it elsewhere, singapore included...

aiya, no need to be defensive. Often when sporeans heard about others friends or relatives migrate oversea Oz, Nz, canada they will make comments like 'why leaving, Spore no good?, "why become 2nd class citizen?', 'XXX country good meh? I heard cannot find jobs' blah blah blah..... these sour grapes are insecure or rather 'frog in a well' themselves and since they had no balls to make the 1st move elsewhere (even deep in their heart they know how shit Sg is), they expect others to follow or bring down others. U don't often hear this from other nationalities like China (about to become the next biggest economy powerhouse in world, HK (heaps ahead of Spore in economy advancement), Taiwanese etc. They make it as though Spore is the best place on earth and there's no where else to be other then the little red dot.

 

[ashjaw]

actually there is no point in 'arguing' abt where is better, no one place is the best for all. Every family leads a different lifestyle, every family member wants to achieve different things in life, everyone has different values and priorities as well. If the family wants to groom a scholar, maybe it's fine to stay put. If the family loves the outdoors, perhaps OZ/NZ/Canada is a good choice. If the family wants opportunities for them to take risks, maybe US is a good option.

Having said that, if sinkies are really 'frogs in the well', no one should say it's not good as long as they think they are doing fine and they live and die in the well without finding out what they are missing. I guess we are all pursuing happiness in life, each has different definition for happiness. But I don't think it's any business of mine if someone I hardly know think sgp is the best. I will probably try to reason out with someone only if he/she is someone I care about enough to want them to be more open in their views and options.

Just my 2 cents

 

[neddy]

actually there is no point in 'arguing' abt where is better, no one place is the best for all. Every family leads a different lifestyle, every family member wants to achieve different things in life, everyone has different values and priorities as well. If the family wants to groom a scholar, maybe it's fine to stay put. If the family loves the outdoors, perhaps OZ/NZ/Canada is a good choice. If the family wants opportunities for them to take risks, maybe US is a good option.

Having said that, if sinkies are really 'frogs in the well', no one should say it's not good as long as they think they are doing fine and they live and die in the well without finding out what they are missing. I guess we are all pursuing happiness in life, each has different definition for happiness. But I don't think it's any business of mine if someone I hardly know think sgp is the best. I will probably try to reason out with someone only if he/she is someone I care about enough to want them to be more open in their views and options.

Just my 2 cents

You are right. There is really no paradise on earth. At the end of the day, the people who emigrate to another country better like that country simply because they typically would have invested a lot of time, and/or money and/or effort to settle in that country.

In Australia, Canada, USA and NZ, etc, the countries are big and diverse enough to offer a place that is suitable for an individual and her/his lifestyle.

 

[Aussie Prick]

You are right. There is really no paradise on earth. At the end of the day, the people who emigrate to another country better like that country simply because they typically would have invested a lot of time, and/or money and/or effort to settle in that country.

In Australia, Canada, USA and NZ, etc, the countries are big and diverse enough to offer a place that is suitable for an individual and her/his lifestyle.

Gosh life in America is simply Amazing. Got someone in my office who bought a brand new Honda Accord for US$ 14,000 after govt rebates for thier son studying there. Its sooooooo cheap.

Too bad Australia just cant compare old boy

Oh those Mercedes C Class Cars are going for a song too, mid US$25K for a brand new C300 according to one source.

Kinda makes you sick doesnt it?

Hee Hee

 

[Ash007]

Why don't you guys take a look at the UBS report on purchasing power in major cities around the world.

http://www.ubs.com/1/e/wealthmanagement/wealth_management_research/prices_earnings.html

page 21 has a chart on comparing a mid-sized car in the different cities with price/tax/fuel cost. Following the chart I see the following

city mid-priced car Price tax fuel(USD)
Singapore Toyota Corolla Altis 1.6 39,300 661 1.16
Sydney Toyota Corolla 1.8 14,500 519 0.79
Kuala Lumpur Toyota Altis 1.8 29,700 77 0.49
Hong Kong Mazda 6 2.0 Sedan 21,900 719 1.69
Los Angeles Honda Accord Sedan 23,000 100 0.64
New York Toyota Corolla 21,000 90 0.67

Price in this case includes sales tax of a popular mid-range car. As you can see from the chart Singapore is the highest,(no surprise there). But if you compare prices to New York and LA, with Sydney, Sydney is easily the cheapest to purchase. The luxury car tax only comes into effect if the price of your car is more then $70K,(around that did not bother to find out) and its only applied to the sum above the threshold. Most cars that you really need is below this threshold. Yes, I'm saying cars are more affordable in Australian cities. Unless you are saying the "country towns" in the US are more affordable. I have no data for that.

 

[Aussie Prick]

Why don't you guys take a look at the UBS report on purchasing power in major cities around the world.

http://www.ubs.com/1/e/wealthmanagement/wealth_management_research/prices_earnings.html

page 21 has a chart on comparing a mid-sized car in the different cities with price/tax/fuel cost. Following the chart I see the following

city mid-priced car Price tax fuel(USD)
Singapore Toyota Corolla Altis 1.6 39,300 661 1.16
Sydney Toyota Corolla 1.8 14,500 519 0.79
Kuala Lumpur Toyota Altis 1.8 29,700 77 0.49
Hong Kong Mazda 6 2.0 Sedan 21,900 719 1.69
Los Angeles Honda Accord Sedan 23,000 100 0.64
New York Toyota Corolla 21,000 90 0.67

Price in this case includes sales tax of a popular mid-range car. As you can see from the chart Singapore is the highest,(no surprise there). But if you compare prices to New York and LA, with Sydney, Sydney is easily the cheapest to purchase. The luxury car tax only comes into effect if the price of your car is more then $70K,(around that did not bother to find out) and its only applied to the sum above the threshold. Most cars that you really need is below this threshold. Yes, I'm saying cars are more affordable in Australian cities. Unless you are saying the "country towns" in the US are more affordable. I have no data for that.

The threshold is actually 55K. A comparison to Canada and the US will show dramatic differences in car prices when you factor in exchange rates. In some cases 2 cars can be bought with the same amount of S$ or US$ a Singaporean will use to purchase a car.

PPP is nice when you talk about what fair market prices are but the US$ is extremely weak today and PPP becomes irrelevant. The last time we spoke about PPP was when the US$ was strong and exchange rates were aligned to PPP. This has not been the case for many years now.

The PPP A$ is 1.66 to the US$ but its now at A$ 1.2 not A$ 1.66. We also expect the US$ to fall to near parity to the US$ making Australia even more expensive when the RBA begins raising rates shortly. So you need to look at the PPP and adjust by 50-60%, unless you can convince your bank to take your $ and convert them at A$ 1.66 which will mean massive losses for the bank. While you are at it, you need to convince the World Bank and the IMF too but they might be too busy realizing the PPP of China means that its GDP is actually close to overtaking the US$ as the world's largest economy. PPP cant be taken into account for practical purposes or for migration at all.

Plus the PPP is not taking in the US govt rebates of up to 4500 USD for each car purchased which is why my colleague was able to purchase this Toyota Camry for only 14,000 USD which is only SGD 20,000 or AUD 17,000.

Bottom line is Singaporeans exchanging thier dollars into American dollars will find they can buy 3-4 of the same car for each one they buy in Singapore vs what it can buy in Singapore or Australia which cant compare to the US thanks to the weak US$. People in Singapore and Australia know how much the Toyota Camry costs there so compare at S$ 20K or A$ 17K and see if you cant buy several cars in the USA for every one in Singapore or Australia.

Plus running costs, petrol, insurance, parking, car maintenance, car registration costs are much lower in America than they are in Australia too.

 

[neddy]

Why don't you guys take a look at the UBS report on purchasing power in major cities around the world.

http://www.ubs.com/1/e/wealthmanagement/wealth_management_research/prices_earnings.html

page 21 has a chart on comparing a mid-sized car in the different cities with price/tax/fuel cost. Following the chart I see the following

city mid-priced car Price tax fuel(USD)
Singapore Toyota Corolla Altis 1.6 39,300 661 1.16
Sydney Toyota Corolla 1.8 14,500 519 0.79
Kuala Lumpur Toyota Altis 1.8 29,700 77 0.49
Hong Kong Mazda 6 2.0 Sedan 21,900 719 1.69
Los Angeles Honda Accord Sedan 23,000 100 0.64
New York Toyota Corolla 21,000 90 0.67

Price in this case includes sales tax of a popular mid-range car. As you can see from the chart Singapore is the highest,(no surprise there). But if you compare prices to New York and LA, with Sydney, Sydney is easily the cheapest to purchase. The luxury car tax only comes into effect if the price of your car is more then $70K,(around that did not bother to find out) and its only applied to the sum above the threshold. Most cars that you really need is below this threshold. Yes, I'm saying cars are more affordable in Australian cities. Unless you are saying the "country towns" in the US are more affordable. I have no data for that.

Australia has set the threhold for Luxury tax to $57k, so a base Merc C class and BMV 1 series will not attract the tax. But for the rich, they will have no problem paying the tax, which is off-set against their income taxes in creative ways anyway.

 

[neddy]

The threshold is actually 55K. A comparison to Canada and the US will show dramatic differences in car prices when you factor in exchange rates. In some cases 2 cars can be bought with the same amount of S$ or US$ a Singaporean will use to purchase a car.

PPP is nice when you talk about what fair market prices are but the US$ is extremely weak today and PPP becomes irrelevant. The last time we spoke about PPP was when the US$ was strong and exchange rates were aligned to PPP. This has not been the case for many years now.

The PPP A$ is 1.66 to the US$ but its now at A$ 1.2 not A$ 1.66. We also expect the US$ to fall to near parity to the US$ making Australia even more expensive when the RBA begins raising rates shortly. So you need to look at the PPP and adjust by 50-60%, unless you can convince your bank to take your $ and convert them at A$ 1.66 which will mean massive losses for the bank. While you are at it, you need to convince the World Bank and the IMF too but they might be too busy realizing the PPP of China means that its GDP is actually close to overtaking the US$ as the world's largest economy. PPP cant be taken into account for practical purposes or for migration at all.

Plus the PPP is not taking in the US govt rebates of up to 4500 USD for each car purchased which is why my colleague was able to purchase this Toyota Camry for only 14,000 USD which is only SGD 20,000 or AUD 17,000.

Bottom line is Singaporeans exchanging thier dollars into American dollars will find they can buy 3-4 of the same car for each one they buy in Singapore vs what it can buy in Singapore or Australia which cant compare to the US thanks to the weak US$. People in Singapore and Australia know how much the Toyota Camry costs there so compare at S$ 20K or A$ 17K and see if you cant buy several cars in the USA for every one in Singapore or Australia.

Plus running costs, petrol, insurance, parking, car maintenance, car registration costs are much lower in America than they are in Australia too.

Do you have any figures for the average insurance cost?

Finally, you decided to talk some sense. Good, keep it up!

 

[Aussie Prick]

Do you have any figures for the average insurance cost?

Finally, you decided to talk some sense. Good, keep it up!

In America Amica Insurance is USD 300 for whole year including comprehensive insurance (collision and liability), roadside assistance and rental car coverage for a new BMW 3 Series.

Try to compare. Then we can talk about mechanic costs in Australia. Got mechanics charging 15 USD in US. Try to compare. Then compare annual registration nenewal at USD 56 for BMW 3 series. Australia cost? 500% more.
Parking? Endless list of how bad Australia is.

 

[neddy]

In America Amica Insurance is USD 300 for whole year including comprehensive insurance (collision and liability), roadside assistance and rental car coverage for a new BMW 3 Series.

Try to compare. Then we can talk about mechanic costs in Australia. Got mechanics charging 15 USD in US. Try to compare. Then compare annual registration nenewal at USD 56 for BMW 3 series. Australia cost? 500% more.
Parking? Endless list of how bad Australia is.

That only explains why an average worker in US cannot afford to get a new car or a new house. Depressing wages in US have been news for sometime, with the disappearing middle-class..

I would rather work in Australia and buy cheap in America.
Best, I would retire in USA for the cheap prices.
How to get a visa? That is a big problem in USA.

Don't you think so?

 

[Aussie Prick]

That only explains why an average worker in US cannot afford to get a new car or a new house. Depressing wages in US have been news for sometime, with the disappearing middle-class..

I would rather work in Australia and buy cheap in America.
Best, I would retire in USA for the cheap prices.
How to get a visa? That is a big problem in USA.

Don't you think so?

Yikes!

Someone actually wants to pay high taxes!

No wonder SGs are so silly! They cant think for themselves!

 

[Ash007]

The threshold is actually 55K. A comparison to Canada and the US will show dramatic differences in car prices when you factor in exchange rates. In some cases 2 cars can be bought with the same amount of S$ or US$ a Singaporean will use to purchase a car.

PPP is nice when you talk about what fair market prices are but the US$ is extremely weak today and PPP becomes irrelevant. The last time we spoke about PPP was when the US$ was strong and exchange rates were aligned to PPP. This has not been the case for many years now.

The PPP A$ is 1.66 to the US$ but its now at A$ 1.2 not A$ 1.66. We also expect the US$ to fall to near parity to the US$ making Australia even more expensive when the RBA begins raising rates shortly. So you need to look at the PPP and adjust by 50-60%, unless you can convince your bank to take your $ and convert them at A$ 1.66 which will mean massive losses for the bank. While you are at it, you need to convince the World Bank and the IMF too but they might be too busy realizing the PPP of China means that its GDP is actually close to overtaking the US$ as the world's largest economy. PPP cant be taken into account for practical purposes or for migration at all.

Plus the PPP is not taking in the US govt rebates of up to 4500 USD for each car purchased which is why my colleague was able to purchase this Toyota Camry for only 14,000 USD which is only SGD 20,000 or AUD 17,000.

Bottom line is Singaporeans exchanging thier dollars into American dollars will find they can buy 3-4 of the same car for each one they buy in Singapore vs what it can buy in Singapore or Australia which cant compare to the US thanks to the weak US$. People in Singapore and Australia know how much the Toyota Camry costs there so compare at S$ 20K or A$ 17K and see if you cant buy several cars in the USA for every one in Singapore or Australia.

Plus running costs, petrol, insurance, parking, car maintenance, car registration costs are much lower in America than they are in Australia too.

Interesting use of the word "we"....

Thanks for the info, circumstances changes, USD versus AUD exchange rate changes. The world changes on a daily basis. Maybe, according to what you guys said, it is cheaper to buy a car in the US now then in Australia because of the exchange rate. What happens when the USD strengthen again ? Or are you guys expecting the USD to remain weak for the foreseeable future? What would be interesting is when the AUD strengthen even further would this make imports cheaper? Would this actually means price of imported goods, including cars be even more affordable?

I assume by PPP your group means purchasing power parity. What should the long term equilibrium exchange rate be in this case?


The report obviously did not take into account the current tax rebate that is being offered by the US government. But, at the same time, it has also not taken account the 50% rebates that the Australian government is giving for businesses. Perhaps your group can take a look at the effect of this on car taxes in Australia versus the US.

Its true that registration is higher in Aust versus the US, this is reflected in the tax section in the charts.

 

[Aussie Prick]

Interesting use of the word "we"....

Thanks for the info, circumstances changes, USD versus AUD exchange rate changes. The world changes on a daily basis. Maybe, according to what you guys said, it is cheaper to buy a car in the US now then in Australia because of the exchange rate. What happens when the USD strengthen again ? Or are you guys expecting the USD to remain weak for the foreseeable future? What would be interesting is when the AUD strengthen even further would this make imports cheaper? Would this actually means price of imported goods, including cars be even more affordable?

I assume by PPP your group means purchasing power parity. What should the long term equilibrium exchange rate be in this case?


The report obviously did not take into account the current tax rebate that is being offered by the US government. But, at the same time, it has also not taken account the 50% rebates that the Australian government is giving for businesses. Perhaps your group can take a look at the effect of this on car taxes in Australia versus the US.

Its true that registration is higher in Aust versus the US, this is reflected in the tax section in the charts.

Should the US$ strengthen of course that would be case. But with record dollar printing and US$ interest rates set at 0 we just dont see it as inflationary pressures will entice the RBA to raise rates long before the US Fed.

Perhaps when US inflation finally catches up with the American consumer then the US fed might raise rates but by then the ECB BOE and RBA would have risen long before and subsequent carry trades would limit any dollar rise.

We just dont see the US$ raising to the "equlibrium" A$ 1.66, instead it will go the other way.