'Clarity in pricing' stricter: Audi

In South Australia, it's possible to register a car for just three months. That's just one of the manifold permutations in registering a car that can have some bearing on the final price of a new car, on the road.

Arguably, the plethora of registration arrangements around the country -- with corresponding pricing regimes -- has not been addressed by the 'Clarity in Pricing' legislation brought into effect by the ACCC (Australian Consumer and Competition Commission).

Even for the cheapest of cars, the dealer delivery charges applicable to a new-car purchase are bound to be lower than the differing amounts charged by state registration authorities -- and unlike the state government bodies, you can at least negotiate with the dealer to reduce those charges.

The Carsales Network has covered this in some detail previously (see our reports from last week, here and here). It was quite instructive to hear the views of Audi's General Manager Corporate Communications, Anna Burgdorf, on that subject.

Burgdorf, speaking during the launch of two new Q5 models (more here), was fairly calm about the issue and doesn't see major concerns for Audi arising out of the legislation.

For a start, prestige importers, between their closer-knit dealer network -- there's just the one Audi dealer in SA, for example -- and the higher margins in pricing, are in a better position to impose a nationwide pricing structure

"You're given a quote by the dealer... That hasn't changed," says Burgdorf.

"We don't disagree with 'Clarity in Pricing' at all. It's a good thing."

But Burgdorf feels that the ACCC -- much like the shonky motor traders they're trying to stomp on -- hasn't been entirely transparent themselves. The final product was significantly different than the original legislation presented to the Treasury, she says.

"The legislation we ended up with was far stricter."

That notwithstanding, Audi can work within the new framework. The company is committed to a web-based car configurator which would query the user for all influencing factors (such as the location of the user by state and his or her age, for examples), before providing an on-road price.

Make the point to Burgdorf that if BMW or Mercedes-Benz can get their respective vehicle pricing configurator up and running first and it may translate into a marketing advantage over Audi -- meaning added sales -- and Burgdorf agrees. The configurator is an important marketing tool, but the importer can't afford for it to be half-baked.

"We would always like to be a leader, but we have to get it right," she concluded.

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