Your questions answered: Will utes become more expensive due to the new fuel-efficiency standards?

There’s big change coming with the federal government’s proposed fuel-efficiency standards, which are set to come into effect in 2025.

Notwithstanding the predictable scare campaigns, there are plenty of questions about what the nation’s first ever New Vehicle Efficiency Standard will mean for Australia’s new-vehicle market.

That kicks off your questions for this week, but we’re also getting into the nuts and bolts of which cars are best – choosing between family SUVs and also between the new Toyota Prado and its Lexus GX sister model.

Plus there’s another Toyota RAV4 Hybrid owner wondering if the price protection guarantee previously offered by Toyota was honoured.

And, of course, some chat about EVs!

Question: In your opinion, what is the likely impact on ute prices of the New Vehicle Efficiency Standard? – Rob

Answer: It’s fair to say there are more questions than answers with the NVES in its early stages.

Clearly, for utes that can tow 3.5 tonnes and venture way off-road, it will be challenging to reduce fuel use by upwards of 60 per cent by 2029.

But, equally, the tech is available now in other parts of the world. North America and China both have fully electric utes, some of which are coming here soon.

By mid-2025 we’re expect LDV, BYD and JAC to have battery-electric utes on sale, followed in 2026 by Kia and then Hyundai.

And, of course, Ford says it will have a plug-in hybrid version of its Ranger available by early 2025.

We also expect a new-generation Toyota HiLux to appear in 2025 with it some sort of hybrid system (although possibly not immediately).

So there’s a whole heap of activity bubbling away in the electrified ute market.

And with around 250,000 ute sales each year in Australia, there’s a good chance Ford, Toyota, Isuzu, Mitsubishi and others won’t simply be abandoning those sales or pushing prices up. You can guarantee they’ll be doing all they can to remain competitive and keep tempting buyers.

While there may be price premiums for electric utes early on, we’d expect competition and advances in both battery tech and manufacturing to reduce those in the medium term.

Time will obviously enlighten us. And, of course, electric utes should be a lot cheaper to run, thanks to lower servicing and energy costs.

But rest assured, you’ll still be able to buy capable and appealing dual-cab 4x4 utes – including diesel ones – for many years to come.

And, of course, there’s no impact on any of the existing utes currently on the market.

Question: Wondering if you could please help. We are from Perth and back in February 2022 we signed up to purchase of a Toyota RAV4 Cruiser all-wheel drive at a total drive-away price of $52,250, which included a discount.

Today one day short of exactly two years ago, we went to the dealership to finalise the licensing papers as our vehicle arrived during the week. In the meantime they had a new contract (without us knowing) of $59,900 driveaway.

I said no way as we have protection for general price increases (GPIs) due to us signing up before 16/5/22. After the dealer principal looked at it they came back with $56,511.87 drive-away that included the previous discount they gave us.

With the price protection (for orders placed prior to May 16, 2022) should we have been charged the original RRP of $48,000 plus the $2450 for the tech change instead of the new RRP of $54,410 less part refund of the two GPIs plus ORCs?

Look forward to your reply. – Peter and Jo

Answer: You’re right in that there’s been a $6410 increase to the list price of a RAV4 Cruiser AWD, which is before on-road costs and any discounts.

Discounts on a RAV4 Hybrid have been rare in recent years given the popularity of the model and the wait lists, so you did well to negotiate that.

Of that price increase, only $2450 of that is a cost that should have stuck on your new payment, given you had the price protection guarantee (which is covered by Toyota, not the dealer). The way I’m reading the general price increases is that you were protected from all of those.

So theoretically it should have been the $48,000 plus $2450 plus on-road costs.

Where it gets trickier is that the on-road costs may have increased, especially things such as registration. Plus the $2450 will attract additional stamp duty of something like $160 (for a value above $50,000 in WA the stamp duty is 6.5 per cent).

So it should be something like $2600 extra, plus any additional on-road charges (some of which the dealer has no control over).

But yes, the short story is you should have been refunded the full general price increases in line with the price guarantee.

Go back to the dealer and point that out. If you don’t have any luck, then lodge a complaint with Toyota’s Customer Assistance Centre on 1800 869 682.

Question: Should I buy the Lexus GX or wait for the Toyota Prado? I’m in the market for a new four-wheel drive and both of these look great. But I’m torn which way to go. – Dale

Answer: As you are no doubt aware the GX shares its architecture and many components with the new Prado. Both are now due to arrive in Australia around mid-2024 and both are likely to attract waiting lists for delivery.

And both share those basic underpinnings – including their 2850mm wheelbases – with the Toyota LandCruiser 300 Series (and Lexus LX), albeit they have different engine options.

Obviously, the Lexus will have a higher price premium on it; We expect the new GX will start around $110,000, while the Prado will remain closer to $70,000, so the first question is whether you’re comfortable shelling out more of your hard-earned.

But the Lexus should also have more luxury gear. The new Prado will be offered in GX, GXL, VX, Kakadu and a new Altitude off-road variant, while the Lexus GX will be available in base Luxury, flagship Sports Luxury and mid-range Overtrail guises, the latter fitted with a range of off-road tech including e-KDSS automatic electric swaybar-disconnect. The Prado will likely come with only manual disconnect system up front, for example.

The second question is how much you want to spend on fuel. The ageing 2.8-litre four-cylinder turbo-diesel in the Prado should be more efficient than the twin-turbo 3.4-litre petrol V6 in the Lexus GX, and it will also get 48V mild-hybrid assistance that promises some minor fuel savings.

The trade-off is the Lexus should have better performance and refinement.

Of course, each will be available with hybrid power in other parts of the world, but neither Toyota or Lexus has committed to either in Australia yet – even if it’s clear they won’t be too far away given the imminent introduction of fuel-efficiency standards that theoretically make that sort of tech more appealing.

Lexus has promised to go all-hybrid by 2030 too, so you can expect the GX to be available only with a 2.4-litre turbo petrol-electric powertrain by the end of this decade, by which time the same system could also be offered in the Prado.

You’re probably getting the idea that there may not be a perfect choice because there are compromises whichever way you jump.

As a really generic statement we’d suggest that if you’re genuinely looking for adventure and to test the off-road mettle of your vehicle then the more basic Prado with a diesel engine may be a better bet.

But if you’re more of a city-slicker with the occasional trip to the snow or bush, then the Lexus GX should reward with its additional luxury.

Question: My son is about to get his Ps so is on the hunt for his first car. He’s got about $20,000 to spend and I’m wondering whether he’s best buying a new car or going for something second-hand? What would you recommend? – Lisa

Answer: There’s nothing like the new-car smell, although the depreciation hit on a new car in your first year of ownership can quickly temper that scent.

That hasn’t been as much of an issue over the past few years due to the shortage of new-vehicle stock, which has helped keep used car prices solid.

But the market has returned to vague normality (with a few exceptions) and you can now almost guarantee that most new cars you buy today will be worth less if you sell it six or 12 months down the track.

Which means that a one- or two-year-old car is often a great way to go, especially when you consider the scarcity of options in the sub-$20K new-car market.

Look for something Korean or Japanese that has been well looked after and is still under the factory warranty.

There are plenty of Kia Ceratos currently listed on carsales and with a seven-year warranty it’s well worth a look.

A Toyota Corolla is always solid buying, especially if you can get one of the hybrid models.

And in the SUV space the Mazda CX-30 is worth considering, as is the Hyundai Kona.

Question: As governments, councils and strata managers grapple with the advent of electric vehicle charging stations, Kristian Gaupset has a better idea: turn our roads into wireless charging platforms instead.

The technology is simple: a copper filament is laid in the road then covered with bitumen. It transfers electricity via a magnetic field to a receiver on the belly of compatible vehicles driving above, charging the batteries as you drive. “You'd never even know it was there,” Gaupset says.

Sweden opened the world’s first electrified road in 2018 and is expanding it. There's a short stretch of it in Detroit, Michigan. – Bill

Answer: There are certainly plenty of innovations to come in the EV charging space and induction charging through roads is one of those.

But it’s not without its challenges. Induction charging generally is far less efficient than plugging in, sometimes requiring up to 50 per cent more electricity. That’s partly because the electrical energy needs to be transformed into magnetic energy to travel through the air, then back into electrical energy once it reaches the donor car.

The charging rate and efficiency can also vary depending on the distance between the under-road charging cables and the receiver on the car, something that could vary wildly between vehicles.

Anyone who’s charged their phone with a wireless charger will know there’s more heat associated with it, too, which is something that makes those energy losses more obvious.

It’s no biggie when you’re charging a laptop but becomes more of an issue when charging an EV with 60, 80, 100kWh of battery capacity.

Wireless EV charging is reportedly now getting to around 90 per cent of the efficiency of plugging in, although that could still mean significant energy losses.

Arguably the bigger issue is creating the wireless charging network.
Australia has a lot of roads and anecdotal evidence suggests councils have enough issues keeping potholes out of them – let alone worrying about running many kilometres of cable beneath their surface.

Question: I have two cars in mind – Subaru Forester and the Toyota Corolla Cross which I have not driven yet.

Which is the better car and value for money? – Gabriel

Answer: The two cars on your shortlist are slightly different in size. The Corolla Cross tends towards the compact end of the SUV scale whereas the Forester is one of the larger mid-size offerings.

We’d suggest if the Corolla Cross has enough space for you then it’s a terrific place to start.

It’s also a great option if you’re looking at a hybrid drivetrain (the Forester hybrid is underwhelming).

Just be aware than depending on the dealer you visit the Corolla Cross may have a wait list.

Push the dealer for a vaguely accurate delivery estimate and see if they’ll commit to that in the contract.

And don’t rule out alternatives beyond the two you’ve shortlisted. The Nissan X-TRAIL and Kia Sportage are two excellent options, each with a hybrid option.

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