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George is incredibly responsive!!

Discussion in 'Australia & New Zealand' started by Dborn, Dec 10, 2012.

  1. Dborn

    Dborn Confirmed

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    I wrote to George earlier today and received a reply from him within hours!! Sunday night in California!! Many thanks, George!!

    Hi David,

    Thanks for your ideas. We are working to do all we can to keep pricing as disciplined as possible everywhere we ship the car.

    George

    Dear George
    I write as Sig#9, Australia reservation holder. As an innovator on so many
    fronts, I write regarding pricing in specifically, Australia.
    Cars in this country are incredibly expensive, irrespective of country of
    origin or type. In particular, our taxing (luxury car tax) is based on the
    price of the car. The more options on the vehicle, the higher the import
    price (INCLUDING, regrettably the shipping/marine insurance cost is added to
    the price before tax), the higher the tax paid to the government, and
    accordingly the higher the cost of the vehicle to the purchaser.

    I wonder whether there is not room here for major innovation from Tesla. If
    aftermaket products are added to the vehicle, and are on a separate invoice,
    then again, taxation is different.
    Perhaps the battery could be supplied as a separately invoiced unit, leaving
    capacity "options" up to the purchaser, for installation in Australia by the
    dealer.

    Accordingly, I am suggesting that perhaps cars could be shipped say with
    ordinary pressed steel wheels and basic tyres, for example, and the
    appropriate rims and tyres supplied separately. The steel wheels could be
    sold to customers for use as spare wheels, for which there is demand here in
    Australia.
    Similarly, if the tech package could be installed after sale, as a dealer
    installed option. Sound package, Paint armour similarly - many companies in
    Australia can apply this. The raw film package pre cut could be supplied by
    Tesla. Opportunity consoles, carpeting, - many products in general could be
    dealt with this way. All subject to separate invoicing.

    I am sure many other parts of the car can be similarly "aftermarketed".
    None of this would affect the Tesla bottom line, but would dramatically
    lower the imported price of the car, and consequently the tax.

    Of course, the original ORDER for the vehicle would specify what
    "aftermarket" "options" would be fitted to the vehicle, so that inventory
    does NOT need to be carried locally. The order page for Australia can be
    specifically designed to cope with this.

    It may even be a good idea to supply the final tyres from Australia, and
    excess steel rims shipped back to the States for reuse on the next vehicle
    Or for sale in the States to those who want spare wheels.

    Thank you for your consideration.
     
  2. markwj

    markwj Moderator, Asia Pacific

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    Hong Kong has a similar situation, but the first registration tax covers accessories on the car both at the time of registration as well as purchased within 6 months of first registration (either by manufacturer or third party dealer). Of course you can just not declare it, but that is tax dodging (and an offense).

    How does it work in AU? Does the tax just cover accessories / options at delivery?

    P.S. For Hong Kong EVs, the above is mute, of course, as EVs and accessories are exempt from first registration tax until spring 2013.
     
  3. Dborn

    Dborn Confirmed

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    We have a goods and services tax of 10%. Then we have a luxury car tax. The latter is imposed when the price of the car plus shipping insurance charges ( which are included in the car price for tax purposes) reaches a certain level. The only concession we get in Australia for electric vehicles is a raising of the threshold at which the tax cuts in. I think we also have import duty. Cars are crazy expensive here. A Nissan
    Leaf sells for $55000 odd!! A small car!!
    So, anything that decreases a cars initial price helps from the luxury tax point of view. Accessories separately invoiced will pay GST only.
     
  4. Johan

    Johan Took a TSLA bear test. Came back negative.

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    Would the tax authorities (IRS) frown upon this practice as being an obvious attempt to avoid taxes?
     
  5. Dborn

    Dborn Confirmed

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    Done properly, it would be legal.
     
  6. Johan

    Johan Took a TSLA bear test. Came back negative.

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    Why isn't it done with ICE luxury cars then? I.e. are cars with no engines or seats sold, where you purchase and mount the engine or seat separetly? If not, there is probably a reason.
     
  7. Dborn

    Dborn Confirmed

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    In fact, when i bought my last car, a Mercedes, I was advised, by the dealer, to order several of the options separately, and that is exactly what i did.
     
  8. Johan

    Johan Took a TSLA bear test. Came back negative.

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    Cool. I would guess then that it's about drawing the line between what is an accessory and what is an integral and necessary part of the car. In an EV I would wager the battery would be legally considered an integral part of the car.
     

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