Car prices fall in SA over past 10 years

WE all complain about the rising cost of living. But when it comes to cars, there’s actually some good news.

Eliza Gieck with a Toyota Corolla, which is cheaper to buy today than it was 10 years ago. Picture: Tait Schmaal

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IT likely comes as little surprise that the trusty old Toyota Corolla – a long time first car owner’s favourite as well as a popular pick for the family’s second run-around – is Australia’s best-selling car.

But what is more unexpected is the fact you’ll pay less for one now than you did more than a decade and a half ago.

Unbelievable but true.

In the past 10 years, statistics from the Australian Bureau of Statistics show us the overall cost of cars in Australia has dropped by 9.6 per cent, compared to an overall CPI inflation rate of 25.1 per cent for the same time frame.

The Advertiser’s motoring experts tell us that in 2001, the base model Corolla was $21,790 plus on-road costs – or, roughly $24,790 drive-away for an auto.

Today you can get one for $22,990 drive-away, roughly $2000 less.

“Add CPI to the equation and in real terms it’s substantially cheaper,” says motoring editor Richard Blackburn.

And in Adelaide you can get an even better deal.

Chris Hardinge is sales manager at Hawthorn-based Cornes Toyota.

“People think you are joking when you say you can buy a Toyota Corolla today for the same price you paid 20 years ago but it’s true,” he laughed.

“We’re selling our base model automatic Corolla Ascent hatchback from $22,230 drive-away.”

Blackburn explains the removal of tariffs has helped to drive down prices – there was a 15 per cent tariff in 2000. But he says one of the biggest influences has been the level of competition.

“It’s not just the removal of tariffs. In the past decade, the number of Korean-built cars sold in Australia has roughly doubled … we didn’t have a free-trade agreement with Korea until 2014,” he says.

“We began a free-trade agreement with Thailand in 2005 – that year we bought 84,831 Thai-built vehicles. In just over a decade that number has grown to almost 300,000.

“Manufacturing worldwide has moved from relatively high labour cost countries – Japan, Australia, the United States and Germany – to low-cost markets such as Thailand, Korea and India.

“We have roughly 50 brands in Australia for a relatively small new-car market, so competition is fierce.

And when it comes to affordability, Blackburn reckons you can’t beat a family sedan.

“As for a good-value family car these days, everybody is going nuts for SUVs but family sedans and hatchbacks are where all the good deals are,” he says.

“Cars such as the Toyota Corolla for smaller families and the Commodore or Camry for larger families.

“If they need seven seats, the Korean brands — Kia’s Sorento and Hyundai’s Santa Fe — are the best value.”