Tariff cuts make luxury cars a bargain
Philip King
LUXURY carmakers have slashed thousands from showroom prices in response to a halving of import tariffs.
The price of a Rolls-Royce has tumbled by $50,000, a Ferrari V12 is now $27,000 cheaper and $20,000 has been taken off the price of a top-spec Aston Martin.
An Audi A3 can now be bought for under $35,000 while a Porsche Boxster costs less than when it first went on sale more than a decade ago, at $105,000.
The tariff cut applied this month, which reduces the impost on imported cars to 5 per cent, came into effect as the government's tax incentive scheme for business vehicle buyers was wound up.
The tax break boosted vehicle demand by 9 per cent last year, according to estimates by Toyota.
Luxury brands have been quick to reduce prices instead of adding equipment to cars, as they have done in the past when tariffs have fallen.
"We made the decision to pass on the saving in full -- it was the right thing to do," Bentley spokesman Ian Churchill said.
Sales of the elite British brand slumped more than 60 per cent last year as premium makers felt the downturn more than most.
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