Honda Crv Price In Australia V. Thailand

[ezzra]

Happened to walk into a Honda dealer in Melbourne and saw top of the line, current model Crv,

manufactured in Thailand going for anywhere between AUD $ 40,000 to $ 45,000 depend on the paint job,

Here in Bkk, the same car will cost you 1.4 million ++ with the current exchange rate

it translate to AUD $ 47,000 +

What gives? are we missing something here?

[joskydive]

It's the same as Airline Tickets bought here. Supply and demand! If people still keep buying at those prices, they will keep supplying at those prices.

[onnut]

not only are the prices more expensive here, the Honda Model in Australia will have many more safety specs added!

its Thailand that needs the safety gear.

[MJo]

Never heard of taxes ?

Cars tend to be cheaper in countries where taxes are lower or there is no taxes....

[chiang mai]

Never heard of taxes ?

Cars tend to be cheaper in countries where taxes are lower or there is no taxes....

So you think that taxes in Australia are lower than in Thailand, if so, which taxes are you referring to that account for the price difference?

[chiang mai]

Happened to walk into a Honda dealer in Melbourne and saw top of the line, current model Crv,

manufactured in Thailand going for anywhere between AUD $ 40,000 to $ 45,000 depend on the paint job,

Here in Bkk, the same car will cost you 1.4 million ++ with the current exchange rate

it translate to AUD $ 47,000 +

What gives? are we missing something here?

I've been down this road before except in the case of UK prices which are similar by comparison to the price differentials you note in Australia - exchange rates play a significant role in accounting for the disparity, try doing the calculation again using exchange rates that are not so Aussie favorable.

[MJo]

Yes i do, and if you want to know the details feel free to google yourself. Feeling bit lazy this morning.

Check the price of CRV in Singapore, i bet it's more than in Thailand and due to notoriously high taxation of vehicles...

[chiang mai]

Yes i do, and if you want to know the details feel free to google yourself. Feeling bit lazy this morning.

Check the price of CRV in Singapore, i bet it's more than in Thailand and due to notoriously high taxation of vehicles...

See post number 6.

[ezzra]

Happened to walk into a Honda dealer in Melbourne and saw top of the line, current model Crv,

manufactured in Thailand going for anywhere between AUD $ 40,000 to $ 45,000 depend on the paint job,

Here in Bkk, the same car will cost you 1.4 million ++ with the current exchange rate

it translate to AUD $ 47,000 +

What gives? are we missing something here?

I've been down this road before except in the case of UK prices which are similar by comparison to the price differentials you note in Australia - exchange rates play a significant role in accounting for the disparity, try doing the calculation again using exchange rates that are not so Aussie favorable.

STILL,

Which ever you look at that and blame exchange rates for the ridiculous prising structure it is still incoperahansable

to accept that a motor vehicle that was manufactured from scratch 100 km from my home will cost more than

in another country 10,000 km away.

[63Tommy1]

I would go with taxes beeing the reason for high prices.

Why would a Hilux 4WD, 4-door "top of the line" (950.000) Cost way less than a "top of the line" Corolla (1.100.000)?

The answer is different taxes.

Tommy

Edited September 19, 2009 by 63Tommy1

[chiang mai]

I would go with taxes beeing the reason for high prices.

Why would a Hilux 4WD, 4-door "top of the line" (950.000) Cost way less than a "top of the line" Corolla (1.100.000)?

The answer is different taxes.

Tommy

Well you could be correct but someone will need to demonstrate which taxes you are both talking about because I remain unconvinced - your example by the way of Hilux and Corolla doesn't make a lot of sense to me because they are both manufactured here in Thailand by the same company so if taxes were the reason for the price differential, the same taxes should apply to both vehicles! I suspect that in the case of your example, Toyota prices the two vehicles in that way because a Hilux is typically a people's or a working vehicle whereas a top of the range Corolla would be aimed at the middle classes, unsure. Also, 150k difference is not really "way less", is it, only about 14%.

[63Tommy1]

14% more for a smaller, benzine powered, 2WD car is not much?

Anyway how is the weather on your planet?

Tommy

Edited September 19, 2009 by 63Tommy1

[chiang mai]

14% more for a smaller, benzine powered, 2WD car is not much?

Anyway how is the weather on your planet?

Tommy

No it's not!

So come on, specifically, which taxes are you talking about, or is yours just a throw away line?

[63Tommy1]

Without seaching any further than this forum, heres a hint of what the tax difference might well be:

"Captiva is a frontwheeldrive with additional allwheeldrive ability. More agile on road, but hopeless offroad.

I like them both. Basicly Fortuner is a more expensive truck, but its PPC taxbreak (build on frame) in LOS (only 20% compared to Captivas

35% excisetax) makes them compete in same pricerange." from this thread: http://www.thaivisa.com/forum/Chevrolet-Ca...0&start=100

So the excise tax on a Corolla Altis is 35% and Hilux is only 20%.

Please bear in mind I have not checked these figures myself.

But there is part of the explanation for the strange pricing.

Tommy

[chiang mai]

I thought your examples were based on Corolla and Hilux or did I miss something you were thinking but didn't say yet?

Ah, misread the post and now see the point you are trying to make - let me take a look and come back, which I will do.

Almost a real time discussion, apologies, I should remember to read the full post before posting!

You've quoted a price differential on two vehicles in Thai Baht, Corolla and Hilux - you've also accounted for that differential by suggesting that excise tax is the reason. But excise tax is only due on exports and since both vehicles are manufactured/assembled here, surely excise tax cannot be the answer.

Edited September 19, 2009 by chiang mai

[Benjie]

They are priced for the market, not on the cost. The CRV is one of the best value for money cars in Thailand, there is no need for them to sell it cheaper.

[63Tommy1]

I thought your examples were based on Corolla and Hilux or did I miss something you were thinking but didn't say yet?

Ah, misread the post and now see the point you are trying to make - let me take a look and come back, which I will do.

Almost a real time discussion, apologies, I should remember to read the full post before posting!

You've quoted a price differential on two vehicles in Thai Baht, Corolla and Hilux - you've also accounted for that differential by suggesting that excise tax is the reason. But excise tax is only due on exports and since both vehicles are manufactured/assembled here, surely excise tax cannot be the answer.

Not picking a fight here, but are you sure?

I am pretty sure all cars are subject to Excise tax.

Tommy

[chiang mai]

I thought your examples were based on Corolla and Hilux or did I miss something you were thinking but didn't say yet?

Ah, misread the post and now see the point you are trying to make - let me take a look and come back, which I will do.

Almost a real time discussion, apologies, I should remember to read the full post before posting!

You've quoted a price differential on two vehicles in Thai Baht, Corolla and Hilux - you've also accounted for that differential by suggesting that excise tax is the reason. But excise tax is only due on exports and since both vehicles are manufactured/assembled here, surely excise tax cannot be the answer.

Not picking a fight here, but are you sure?

I am pretty sure all cars are subject to Excise tax.

Tommy

I realize you are not picking a fight, I'm keen to find an answer also - here's what Wiki has to say on the subject:

Effectively it's an export tax but in reverse since the parts are manufactured here.

"An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good".

The answer seems to be that a greater percentage of Hilux parts are manufactured in Thailand than in the case of the Corolla, thus the tax is less on the Hilux, thus you are correct in your answer.

Edited September 19, 2009 by chiang mai

[jerrylee]

I thought your examples were based on Corolla and Hilux or did I miss something you were thinking but didn't say yet?

Ah, misread the post and now see the point you are trying to make - let me take a look and come back, which I will do.

Almost a real time discussion, apologies, I should remember to read the full post before posting!

You've quoted a price differential on two vehicles in Thai Baht, Corolla and Hilux - you've also accounted for that differential by suggesting that excise tax is the reason. But excise tax is only due on exports and since both vehicles are manufactured/assembled here, surely excise tax cannot be the answer.

Not picking a fight here, but are you sure?

I am pretty sure all cars are subject to Excise tax.

Tommy

Its a different rate for rural/farming vehicles with open backs i.e. pickups, and the tax goes up even if you add a "carryboy".

Corolla is not one of these.

[Plus]

There's a tax on the kind of vehicle - SUV, sedan, or pickup truck, and then further taxes on engine displacement, with 2l and 2.4l being thresholds. CRV gets the worst tax hit here, and so cost more than Fortuner that is bigger in every aspect and carries half a ton more metal and plastic.

You see, in Thailand auto-market they tax the rich when they want to display their superiority. The more luxurious car you want, the heavier the tax. Want to drive a faster car - slap a million on top, want to show off some Euro brand, slap another million.

[NanLaew]

okidoki, so we are agreed that there's a different taxes for different types of vehicles in Thailand and this also is seen in different excise duties. Years ago it used to be easy when there was no local auto making industry and everything was imported with upwards of 100% import duty depending on the marque. This resulted in the quip that when you bought a car in Thailand, you also bought one for the government. If you bought a Merc, you bought 2 for the government!

Now, the OP should do us a favour and next time he pops into the Melbourne Honda dealer, rather than quote a rather irrelevant 'on the road' price and pull a forex rate out of his arse, he should get the breakdown on Australian taxes and duties as well. A bit like the Economist magazines 'Big Mac' Index where they really do try and compare apples with apples.... or Big Macs or, in our case, Honda CRV's.

Edited September 30, 2009 by NanLaew

[Priceless]

Taxes do make a difference How about paying 2.7 million THB for a CR-V? Try Denmark

/ Priceless

[BSJ]

Import duty 5% and General Service Tax (GST) is 10% in Oz.

You can't blame the Aussie government for the ridiculous high price of cars and trucks in Oz. Try the price gouging imports.

Edited September 30, 2009 by BSJ

[katabeachbum]

LOS made vehicle taxes, excice taxes

pickups 0-3%

ppc like Fortuner, Pajero Sport, MU7, Everest, build on frame, minimum 2,75 m wheelbase 20%

cars, suv not build on frame, motorbikes, less than 2000cc 35%

cars suv less than 2500cc 40%

next group is less than 3000cc, forgot tax

all limit 220hp, thats why many are detuned to 219 hp

discount 5% if able to run E20

add 7% vat on all

[Plus]

There's no 220hp limit - it's just the next tax bracket.

To the OP - 40,000-45,000 and 47,000 are not that far apart. Try prices for RAV4, which is very similar to CRV.

[katabeachbum]

There's no 220hp limit - it's just the next tax bracket.

To the OP - 40,000-45,000 and 47,000 are not that far apart. Try prices for RAV4, which is very similar to CRV.

yepp, correct plus.

What I meant to say is that these taxes apply only within 220 hp limit. Over 220 hp, even below 2000cc, the excice tax is very high

When aussie taxes are compared with thai taxes CRV seems to be more expensive taxfree in aussie land

Same thing goes for Vigo. Its good business to purchase Vigo in LOS, even with LOS taxes, and sell them in GB. Check with Expat Motors.

Edited October 1, 2009 by katabeachbum

[Plus]

Yeah, over 220 hp taxes are a murder - Mazda Rx8 with 1.5l engine cost what - 4 mil?

[madjbs]

because I remain unconvinced

Convinced enough yet?

[Grant]

have you ever noticed the rate diffrence between Thailand an dAustralia exchanges are about 10% have ben for 10 years or more..

6 years ago: 1USD = 42THB, Honda Civic top - about 1M

Today: 1USD = 34THB, Honda Civic top - about 1M

30%

[katabeachbum]

14% more for a smaller, benzine powered, 2WD car is not much?

Anyway how is the weather on your planet?

Tommy

No it's not!

So come on, specifically, which taxes are you talking about, or is yours just a throw away line?

Different countries have different taxes (both levels and descriptions).

Some are import taxes (the whole car or parts of it), some are duties, some are just luxury taxes.Soem are applied in respect of the engine size (as in Thailand) or the type of vehicle (ie: pick up, saloon, CRV - all differnet)

Example ; In Thailand you can buy a Proton from malaysia which is much cheaper than other imports because the Thai government has aspcial relationship with Malaysia and charges only 5% tax on the whole vehicle.

Proton is imported CBU (completely build unit) from Malaysia at 5% importduty, which will be reduced to 0% in january 2010.

Still has 35% excice tax on top of the importduty and cars value. add 7% vat.