Thursday, 24 January 2008

I'm no great shakes at business or economics, so I am curious about this. I read online in the Post Newspaper, which I used to work for, that the new Lexus LS 460 car costs about $160,000 (Australian) in Australia.
Yet the same car costs only about $61,000 (US) here.
The Aussie dollar is worth almost as much as an American one, so let's convert the Australian cost to about $140,000 (US).
Given that this is just a glorified Toyota, why is there this huge difference in cost? I know the US market is many, many times bigger, but still. And Toyotas are built in Australia. But even if this car had to come from Japan, that's nearer to Australia than it is to the US. I just cannot fathom why Australians have to pay well over double what the American buyers will have to pay. (And it's a bit of a boring old car anyway, even if, as Will says, it's pretty speccy and luxurious!)

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