Myths busted! Were new model prices really cheaper when cars were made in Australia?

As Australian vehicle manufacturing drew to a close in 2017, it was widely assumed that cars would likely cost less and/or offer more for the money.

After all, low volumes, high wages, soaring production costs and mounting losses were key reasons cited as to why Ford, Toyota and General Motors ceased making cars in Australia. Their imported replacements would simply not be as expensive, especially if sourced from countries with free-trade agreements like Japan and Thailand, and so more competitive.

Of course, in the five years since Australian car production ended, unforeseeable global events like the pandemic and the demand surge, semiconductor shortages and supply constraints that followed, as well as the subsequent war in Europe and fuel prices hikes, have all led to what seems like unprecedented price increases.

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But is this really what’s happened? Are Australians worse off today than back then?

We compare the 2022, 2017 and – for a fuller perspective – 2012 prices of several popular models, using our trusty inflation calculator with figures rounded out to the nearest whole number, to find out how far from reality that original, more competitive price premise has strayed.

You might be shocked by the results!

Light cars/superminis: Suzuki Swift

In November 2022, the base Swift GL Navigator auto starts from $22,990.

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In 2017, the same model was $17,990 but adjusted for inflation would cost $20,700 today.

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The previous-shape Swift GA auto from 2012 at $17,690 adjusted for today commenced at $22,400.

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For decades, the Suzuki Swift has held a special place as a low-priced high-quality urban runabout. But prices feel like they’ve gone ballistic lately. And with good reason.

In November 2022, the base Swift GL Navigator auto starts from $22,990 (all prices in this article are before on-road costs). In 2017, the same model was $17,990 but adjusted for inflation would cost $20,700 today, while the previous-shape Swift GA auto from 2012 at $17,690 adjusted for today commenced at $22,400.

Clearly, the 2017 Swift was cheaper than before or since, and in this case, it’s essentially the same vehicle except for a few little extras added during the 2020 facelift.

And the Toyota Yaris and Mazda2 are even more expensive today, even when factoring-in inflation, than their predecessors. You’re not imagining it, folks: today’s supermini buyers are paying for the privilege.

Little wonder the segment is shrinking so, ahem, Swiftly…

Advantage: 2017 Swift, Yaris, Mazda2 buyers

Small cars: Hyundai i30

In 2022, the base i30 hatch auto starts from $25,720.

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In 2017, the same PD i30 Active model advertised from $23,250 but adjusted for inflation would cost $26,800 today.

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The 2012 version from $22,990 would now be $29,200.

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Sadly, with the demise of Holden, we can’t make a direct comparison between the last-ever Australian-made small car, the Holden JH Cruze, and its Opel-built Astra successor, so let’s look at the perennially popular and identically priced Hyundai i30 imported from South Korea instead.

In 2022, the base i30 hatch auto starts from $25,720. In 2017, the same PD i30 Active model advertised from $23,250 but adjusted for inflation would cost $26,800 today, while the 2012 version from $22,990 would now be $29,200.

Given how much more-highly specified a 2022 PD4 i30 is compared to its predecessors, the small-car buyer is some $1100 and $3500 better off today than five and 10 years ago respectively. Result.

To varying degrees, the same also applies to the base auto Subaru Impreza, Kia Cerato and pre-facelift Toyota Corolla – though the latter’s MY23 Series II redo with some improvements being rolled out this month joins the Mazda3 in costing nearly 10 per cent more this year than back in 2017.

In the latest Corolla and 3’s cases, while we’d wager that price difference is more than made up by today’s newer-generation models being quantifiably better so worth the extra $2500 and $2100 respectively, it’s still a big jump over five years.

Likewise, today’s VW Golf tees off from $34,690, compared to $26,490 in 2017 and $24,490 in 2012, which are around $30,500 and $31,100 respectively in today’s money.

Advantage: 2022 i30 buyer

Medium-sized cars: Toyota Camry

In 2022, the base Ascent out of Japan starts from $30,990.

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In 2017, the last of the Altona-made Altise equivalents kicked off from $26,490 but adjusted for inflation would cost $30,500 today.

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The 2012 version from $30,490 would now be a whopping $38,700 adjusted for inflation.

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Australian Camry production ran for nearly 31 years before Toyota pulled the pin, and here it’s interesting to see how the local fleet-car favourite has fared over the past 10 years.

In 2022, the base Ascent out of Japan starts from $30,990. In 2017, the last of the Altona-made Altise equivalents kicked off from $26,490 but adjusted for inflation would cost $30,500 today, while the 2012 version from $30,490 would now be a whopping $38,700 adjusted for inflation. Blimey!

As a straight like-for-like comparison, the old-shape Australian-made Camry Altise was only $500 cheaper in today’s money than the dramatically safer, more refined and better-equipped 2022 Ascent. We know which one we’d go for.

Advantage: 2022 Camry buyer

Medium-sized SUVs: Mazda CX-5

The MY23 KF CX-5 Maxx 2.0L starts from $35,390.

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In 2017, the pre-facelift version of the same model advertised from $30,690 but adjusted for inflation would cost $35,400 today.

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The 2012 KE original from $29,800 would now be $37,800.

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Mazda’s worldwide mid-sized SUV saviour is often referenced as the sort of car Australia should have been building, instead of the rapidly-fading Camry, Ford Falcon and Holden Commodore set. Let’s see how the base 2WD auto’s price trajectory has fared.

The MY23 KF CX-5 Maxx 2.0L starts from $35,390. In 2017, the pre-facelift version of the same model advertised from $30,690 but adjusted for inflation would cost $35,400 today, while the 2012 KE original from $29,800 would now be $37,800.

Which means that the Japanese Mazda has simply been keeping up with inflation, yet is nowadays a palpably more civilised family car thanks to continuous small improvements since the current shape launched in March 2017.

And what about the all-conquering Toyota RAV4 from $34,400 for the GX 2WD? We’re pleased to say it actually costs less now than the vastly inferior predecessor did five and 10 years ago. Same with today’s excellent Subaru Forester. No wonder their waiting lists remain so frustratingly long. At least medium SUVs have never been better.

Advantage: 2022 CX-5, RAV4 and Forester buyers

Family-sized SUVs: Toyota Prado

In 2022, the base GX is listed from $60,830.

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In 2017, the same vehicle was $56,090 but adjusted for inflation would cost $64,700 today.

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The barely-changed 2012 version from $58,254 would now be a hefty $73,900.

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Back in the day, history’s only Australian-made SUV – the Ford Territory from 2004-2016 – challenged the Toyota Prado for sales supremacy. Now, the latter is by-far the most popular vehicle in its class, and buyers can’t seem to get enough of it.

But are we paying too much for Prado?

In 2022, the base GX is listed from $60,830. In 2017, the same vehicle was $56,090 but adjusted for inflation would cost $64,700 today, while the barely-changed 2012 version from $58,254 would now be a hefty $73,900.

Yes, the J150 Prado is essentially unchanged since 2009 so today’s version is getting very long in the tooth, but the 2022 Toyota 4x4 remains the least expensive, in GX wagon guise anyway (as there were cheaper two-door SX and ZR models a decade ago), and that’s a big win.

Advantage: 2022 Prado buyer

Mid-sized ute: Ford Ranger XLT

In 2022, the MY23 XLT 4WD starts from $61,990.

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In 2017, the PX II XLT equivalent advertised from $57,690 but adjusted for inflation would cost $66,500 today.

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The 2012 PX original version from $55,390 would set you back $70,300 in today’s dollars.

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Out to snatch Australia’s bestselling vehicle crown from the Toyota HiLux, the Australian-designed and engineered T6 Ranger has justifiably garnered a strong and sustained following, particularly amongst private buyers.

Interestingly, of all the vehicles highlighted in this story, each time frame is represented by a distinctly different Ranger, so let’s take a look at the most popular grade, the XLT Double Cab 4WD auto, to see how it has stacked up in the affordability stakes.

In 2022, the MY23 XLT 4WD starts from $61,990. In 2017, the PX II XLT equivalent advertised from $57,690 but adjusted for inflation would cost $66,500 today, while the 2012 PX original version from $55,390 would set you back $70,300 in today’s dollars.

Another slam-dunk for today’s pricing. Today’s vastly-improved P703 Ranger somehow happens to be about $4500 cheaper than the previous model five years ago inflation-adjusted, and a sizeable $8300 less than its decade-old predecessor.

Yes, it’s not made in Australia, but the fact that the MY23 XLT is less expensive now than it has been over the past 10 years while maintaining the status quo as the world’s best mid-sized ute overall is some comfort.

And great news for buyers who might reckon we’re getting ripped off in today’s uncertain times. In this Ranger’s case, they’re clearly not. Exactly the same outcome too applies to the Ford’s HiLux SR5 4x4 auto’s nemesis.

Advantage: 2022 Ranger and HiLux buyers

Myths largely busted!

Frankly, before researching and crunching the numbers, we would not have thought that, heading into 2023, most of the models we had chosen would be cheaper than their 2017 and 2012 counterparts.

In conclusion, in the five years since Australian full-vehicle manufacturing stopped, it’s largely true: cars are cheaper as well as better all-round.

What a surprise!