Australians paying a pricey premium for prestige

Australia ranked highly in survey of the most expensive places to buy luxury cars.

Australia has been ranked fourth in a comparison of the most expensive countries in the world to purchase a luxury car. 

New research by UAE-based car insurance comparison site carinsurance.ae reveals how Australia compares to the rest of the world when it comes to the price of luxury cars.

The research compared five luxury vehicles on their recommended retail price in more than 30 markets around the world, revealing the price people pay for the same car can vary markedly, depending on where they live.

The survey appears to confirm something Australian prestige car buyers have long felt; that the price of new vehicles is heavily skewed by Australia’s various state and federal taxes, particularly the widely derided luxury car tax.  

But while the survey found we are among the top contenders for the title of “Most expensive place to buy a luxury car”, we’re pipped by Israel, Denmark, and Finland, which finished first, second and third respectively. 

The average price of the five surveyed luxury cars across 30 countries was found to be $123,573, with motorists in Israel slugged more than double the global average at $257,528. 

Drivers in Denmark didn’t fare much better, the Scandinavian country snaring silver with an average cost of $207,328. 

Rounding out the top three was Denmark’s Nordic neighbour Finland, where the average luxury car is a still pricey but more affordable $141,130.

Australia was fourth with an average price of $139,583. 

Our trans-Tasman neighbours New Zealand are laughing all the way to the bank, with an average luxury car price of $125,716, which while notably better than Australia, was still high enough to snare them 10th outright on the list of the most expensive places to buy a luxury car.

Flipping the script to look at the least-expensive countries for purchasing the same five luxury vehicles, the USA claimed top spot with an impressively affordable $81,408.

It was followed by Canada, with an average price of $89,507, and Japan, where the average price jumps sharply to $106,784. 

Putting this into perspective by comparing the price of a specific model in several countries, Mercedes-Benz S-Class costs a towering $335,757 in Israel, a still eye-watering $195,557 in Australia, and a comparative bargain-basement $94,250 in the USA.

The most expensive countries for luxury cars:

 Rank  Country

 Mercedes-Benz S-Class

 Range Rover  Audi e-tron Quattro  Tesla Model S BMW X-7   Average price
 1  Israel  $335,757  $368,101  $161,943   $147,689  $274,150  $257,528
 2  Denmark  $281,384  $326,333  $89,222  $132,374  N/A  $207,328
 3  Finland  $186,209  $163,765  $92,164  $108,734  $154,778  $141,130
 4  Australia  $195,557  $164,848  $113,596  $112,292  $111,622  $139,583
 5  Norway  $156,413  $195,666  $70,655  $97,544  $167,678  $137,591

The cheapest counties for luxury cars:

Rank Country

Mercedes-BenzS-Class

Range Rover Audi e-tron Quattro Tesla Model S BMW X-7 Average price
1 USA  $94,250  $92,000  $65,900   $79,990  $74,900   $81,408
2 Canada  $100,476  $100,151  $69,642  $93,553  $83,716  $89,507
3 Japan  $116,755  $134,814  $84,248  $97,512  $100,591  $106,784
4 UK  $106,679  $116,263  $86,336  $116,896  $108,169  $106,869
5 Luxembourg  $121,920  $127,337  $81,500  $105,149  $104,458  $108,073