Strut Your Stuff
During September and October, Whiteline Suspension will take 20% off the normal retail price of all polished alloy strut tower braces. Popular Commodore applications will retail for only A$159 instead of the normal A$199, while import applications like Civic and Pulsar will cost A$175.The newly expanded range is based exclusively on aircraft-grade alloy rods, with high tensile fittings and hardware. The alloy rods are also adjustable to allow for precise fitment and fine tunning and all end-mounting plates are powder coated. Go to http://www.whiteline.com.au/ for more details.
Citroen Virtual Showroom
The new Citroën Picasso, due in Australia next year, is the first car from the French car maker which may be examined in every colour/trim combination and with every option in every Citroën car showroom thanks to a unique three dimensional virtual reality simulator.
Already being installed in Citroën dealerships across Europe, the Picasso simulator enables customers to explore every aspect of the new MPV or take a guided tour of the Picasso. The customer wears a special headpiece that contains two LCD TV screens to give the three-dimensional effect and movement around the car is achieved via a joy stick control. Using menus, the customer may chose their body colour and upholstery and then equip
their Picasso with all the desired options. They walk around the car and climb through it, operating controls and moving seats. Windows, sunroof and doors may be opened and closed and even features like the radio may be operated.
Developed by Citroën's own information technology department, the system uses a Pentium III 550 MHz computer and requires a 9.1Gb hard disk. Citroën has deliberately designed the system to be open to new additions and the company predicts that as well as all future models using the new technology, Citroën customers will be able to tour the company's factories; walk through its history; test prototypes and look at motorsport vehicles. By integrating it into the next generation Internet, Citroën customers will be able to test drive their new car without even leaving home.
The Dollars and the Sense
If you live in Australia are looking at the purchase of a new or used car, the vexed question of how the introduction of the Goods & Services Tax will affect values will be a source of concern. Here's Alfa Romeo Australia's viewpoint:
Speaking at the launch of the new Alfa Romeo 166, the new General Manager for Alfa Romeo, Rob Dommerson, has warned that car buyers could be in for a shock if they think that GST will automatically mean that buying a new car will cost less after the launch of the new tax next year.
"For the vast majority of new car buyers the actual cost of buying a new a car is not the recommended retail price," explains Rob Dommerson. "It is the difference between the money they raise for the their trade-in and the cost of the new car, the so-called 'change over' cost. When new car prices change, used car prices match the change. This means that when GST reduces new car prices, used values will also fall. So the difference between value of the old car and the cost of the new may stay the same, with the possibility of no overall saving for the car buyer."
"As well as the price of new cars, used values are affected by market supply. If there is a rush of people to buy new cars from July onwards, a flood of used cars will further push down used values and it is quite possible that this could mean that the change over cost could be greater than before the arrival of GST," says Mr Dommerson. "There is already evidence in the market place that used values are starting to fall in anticipation of the arrival of GST and car buyers need to be aware that they could achieve a lower trade value for their car than they expect."
The car market is unique in that it is the only sector of the retail market in which a trade in of used product makes a considerable contribution to the purchase of the replacement product. In other purchases customers pay the entire cost of the product, but with a car purchase a significant roportion is provided by either the private sale of the car that is being replaced or it forms part of payment, in the form of a trade in, to the car dealer. For this reason used car values play a very significant role in the purchase of a new car.
There is clear evidence of the effect of new car prices on used values with the arrival of the Koreans in the small car sector, where low prices and drive away deals pushed down used values substantially, not just in the small car sector, but across a number of market sectors. Alfa Romeo Australia expects there to be a general slow down in the car market in the first half of next year, with the market picking up again after the arrival of GST.
"The depth and rate of decline of the market in the first half of 2000 is very dependent on the public's understanding that despite claims to the contrary there will be no major savings to be had with the arrival of GST," says Dommerson. "Any car maker who preempts GST amply demonstrates this and they are involved a smoke and mirrors illusion to hide their deep discounting. By reducing their new car prices, they depress their used car values so that, once again, the actual cost of moving into a new car remains the same."
"To ensure a stable car market that protects the values of all cars, the government and the motor industry needs to explain to the public the true nature of the car market and not allow the hype of 'cheap cars for all' to damage car values and the market place," says Mr Dommerson
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