Bloomin' Onions! All-new Outback Pricing Released, Starts at $25745

Posted: 05 Jun 2014 02:22 PM PDT

Subaru released prices for the all-new 2015 Outback; they'll start at $25,745 for the base 2.5i and range up to $33,845 for the 3.6R Limited. At first glance, it appears that prices have risen anywhere from $925 to $1425 versus last year's model—which was itself pretty much carried over from 2013 levels—but dig deeper and you'll see that's not the whole story.

All 2015 Outbacks will be equipped with a continuously variable transmission (CVT) as standard equipment; last year, the CVT was a $1000 option on the 2.5i and 2.5i Premium models. Taking this into account, the increases for 2015 are actually modest: they amount to $425 for the 2.5i and only $225 for the 2.5i Premium; that is, if you actually wanted a CVT. Fans of manual transmissions (Save the Manuals! Please!) will no doubt feel doubly wronged. The Limited models were CVT-only for 2014, and went up $925.

In addition to the CVT, all Outback models will now feature active torque vectoring, X-Mode active-traction assist, hill descent, and hill-start-assist features as standard. Inside, a new 6.2-inch color touch screen is standard along with Starlink, Aha, Pandora, Bluetooth, and a host of other infotainment features. As in recent years, there are four trim levels: the base 2.5i ($25,745), the 2.5i Premium ($27,845), and the 2.5i Limited ($30,845); the 3.6R Limited tops out the range at $33,845.

There are several option packages. Premium models can add a sunroof and power tailgate for $1695. For another $500, throw in navigation with Sirius XM, traffic and weather making a total of $2195. There's also an EyeSight package with blind-spot detection, lane-change assist, and rear cross-traffic alert for $1695, or combined with the sunroof/tailgate/nav packages for a total of $3390. For the two Limited models, there's a package with a sunroof, keyless access, push-button start, and navigation for $2195; with the EyeSight package added in, the total is $2990. The redesigned Outback is expected in showrooms this summer.

Prestige car prices to plummet if tariffs go: Car News 2014-02-14 ...

Posted: 13 Feb 2014 04:15 PM PST

THE price tags at Nick Theodossi's North Melbourne prestige car showroom would plunge dramatically if calls for the scrapping of the 5 per cent tariff on imported cars and the luxury car tax are taken up by the government.

As Joe Hockey yesterday confirmed the government would consider dropping the imposts after the departures of Ford, Toyota and Holden left no carmaking industry to protect, car buyers were contemplating savings of more than $10,000 on a $93,000 BMW 335i sedan, and significantly higher price cuts on six-figure vehicles.

Dealers like Mr Theodossi, who have long opposed the protection given to the local car manufacturing industry, were cautiously welcoming the possibility that high-end brands such as BMW, Audi and Land Rover might soon be within reach of mainstream buyers. Mr Theodossi, 62, said he was yet to be convinced the government would follow the recommendation of leading economists and scrap the luxury car tax, but it would be a massive boost for the industry -- and consumers -- if it happened.

"I can't see the government scrapping it, but it would be fantastic if they did," he said. "Everybody could buy a Mercedes." After the Australian Automotive Association this week called for the scrapping of the tariffs on imported cars in the wake of the demise of the Australian car manufacturing industry, the Treasurer said yesterday the idea would be considered.

"The car industry is not going until 2017, but this is something that will certainly be considered by our review of taxation, which will occur in the next 18 months or so, and certainly before the next election," Mr Hockey said. The import tariff raises about $900m a year, and the luxury car tax about $400m a year.

While the removal of the 5 per cent tariff on imported passenger cars could cut several hundred dollars or more off the cost of a mid-range car such as a Mazda 3, expensive cars that attracted the tariff and the luxury car tax could fall by thousands of dollars. Mr Theodossi said he thought consumers rather than dealers would be the main winners if the tax was abolished.

His most expensive car in stock is a 2013 Bentley Continental Coupe, which although he can sell it for less, retails for $500,000 excluding GST. With fuel consumption of 9.9L/100km, it does not meet the government's fuel efficiency threshold of 7L/100km, and is taxed at a rate of 33 per cent on the portion of the price of the car above $60,316, making the luxury car tax (LCT) component of the price $145,095.

The scrapping of the LCT would therefore reduce the price of the Bentley from $500,000, to $354,904. Trade Prestige Cars dealer Stephen Curtain said he believed the case for abolishing the imported and luxury car taxes was compelling.

"If they're charging the tax to try to protect Australian car manufacturers and there are now no Australian car manufacturers, it makes no sense to keep it." Mr Curtain predominantly deals in used luxury cars, but said he expected sales of new high-end cars to increase significantly if the tax was scrapped. "No doubt if someone knocks $8000 or $10,000 off the price of a car, that will drive up sales of luxury cars."

Ateco Automotive executive chairman Neville Crichton, whose Sydney-based group owns dealerships that sell vehicles ranging from the Chinese-made Chery to Italy's Maserati, said he had no doubt that tariffs and the luxury car tax should be scrapped.

"The luxury car tax was put in place to protect the local producers with the (Holden) Statesman -- they don't make those cars any more," Mr Crichton said. "It's become a revenue situation rather than a protectionist tariff. I think the luxury tax is extremely unfair."

He said car prices would plunge if they were scrapped. "Right now, if you look at a $600,000 Ferrari, close to 30 per cent of that is going to the luxury car tax. It doesn't take Einstein to work out that suddenly that $600,000 car becomes a $400,000 car," he said.

"It'll open the market up considerably." But he said BMW and Audi would be the big winners. "The brands that would certainly benefit would be Land Rover, BMW, Audi, Mercedes, Maserati. There's still only a limited amount of people who would want to own a Ferrari or a Lamborghini. It would bring a lot of the BMW and Audi range into a normal car bracket again."

ADDITIONAL REPORTING: SID MAHER, DARREN DAVIDSON, MARK SCHLIEBS

Car Prices Blog

Friday, 6 June 2014