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Old 05-13-2012, 09:57 PM
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Most expensive developed word country to buy a Jeep Grand Cherokee

Petrol models compared AU/US (used 1:1 exchange rate)

Laredo (4x4) 3.6 AU = 49000
Laredo X (4x4) 3.6 US = 36295
Mark Up % = +35%

Limited (4x4) 3.6 AU = 60278
Limited (4x4) 3.6 US = 39295
Mark Up % = +53.4%

Overland (4x4) 5.7 AU = 80000
Overland (4x4) 5.7 US = 43990
Mark Up % = +81.8%

SR8 (4x4) AU = 91000
SR8 (4x4) US = 57940
Mark Up % = +49.3%

CRD models not available in US yet, therefore compared AU/UK (1: 0.623 exchange rate)

Laredo (not available in UK??)

Limited (4x4) CRD AU = 66807
Limited (4x4) CRD UK (£) = 35990
Mark Up % = +16%

Overland (4x4) CRD AU = 79770
Overland (4x4) CRD UK (£)= 43995
Mark Up % = +13%


I am not sure what % of the mark-up contribute to AU govt taxes and shipping cost, and what % kept as profit by Jeep Australia seat warmers. Perhaps some one know more in this area can enlighten us. So as a rule of thumb, for petrol models price you pay for 2 Grand Cherokees will buy you 3 Grand Cherokees in US.
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Old 05-14-2012, 08:01 PM
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Re: Most expensive developed word country to buy a Jeep Grand Cherokee

I'm pretty sure that the Grand Cherokee would incur 5% import Duty and 10% GST, so looking at the Laredo example this brings the price up to $41,739. On top of this a retail price (though I'm sure Jeep could get a better deal) for shipping would be about $3k so this brings the landed price of the car to about $45,000 which is the retail price of the car in Australia. Once you add stamp duty of about $1500, rego, dealer delivery etc to the landed price you'll come up with $49k pretty easily.

Based my calcs I don't think there is much room for profiteering, I would think that Jeep Australia make their money on buying the vehicles at a wholesale rate.

I wonder how much they actually buy the cars for? I wonder what a dealer makes out of a car?
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Old 05-14-2012, 08:40 PM
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Re: Most expensive developed word country to buy a Jeep Grand Cherokee

The wholesale price for the vehicle on which duty is paid would be a lot less, also they get a refund of the GST paid on import so it doesn't add to their input costs. So their landed cost would still be in the 30's for a Laredo.
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Old 05-14-2012, 09:11 PM
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Re: Most expensive developed word country to buy a Jeep Grand Cherokee

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Originally Posted by Mendo View Post
The wholesale price for the vehicle on which duty is paid would be a lot less, also they get a refund of the GST paid on import so it doesn't add to their input costs. So their landed cost would still be in the 30's for a Laredo.
In that case, maybe there is room for profiteering??
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Old 05-14-2012, 09:37 PM
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Re: Most expensive developed word country to buy a Jeep Grand Cherokee

AFAIK Jeep US sell it to Jeep Australia then Jeep Australia sell it to your Dealer at each step the seller has to make a profit.
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Old 05-14-2012, 11:00 PM
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Re: Most expensive developed word country to buy a Jeep Grand Cherokee

You need to remember there are the compliance costs, such as ADR's, crash testing and emissions. This would add a noticeable cost to each vehicle as not many are sold in respect to the volume in the EU or USA.
There are also the differences in models. We generally get the fully loaded models, as it is too costly to have all the models and options they have in the USA. We only have 3 models with minimal option choices. You cannot compare the exact USA models to ours as our Overland is the same as their Summit.

The Overland model will also incur LCT, which would add a fair whack on the price.
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