New motorcycle pricing legislation now in force

May 25 marked the start of a new regime for new-motorcycle sales -- one in which advertised pricing must be transparent to the would-be buyer. But it doesn't come without some repercussions.

Far from ensuring advertised pricing is clear of obfuscation, the new legislation from the Australian Consumer and Competition Commission (ACCC) has sent some dealers and motorcycle companies into a tailspin.

The legislation seeks to place the onus on advertisers to provide an all-in price, which can vary from state to state in accordance with different statutory charges applicable. Unfortunately though, it doesn't give the new motorcycle-shopper even a ball-park indication of what he or she is likely to pay.

When, in the past, the prospective buyer could compare prices advertised by different dealers for the same motorcycle -- taking into account advertised disclaimers -- now the consumer is placed in the situation of shopping around on the phone.

And even before the advent of the 'Clarity in pricing' legislation, dealers were loath to offer a price on a new motorcycle over the phone, preferring buyers attend the dealership in person.

As a consequence, the buyer will inevitably find it that much harder to research a new motorcycle ahead of working out finance options and establishing what his or her motorcycle may be worth as a private sale, versus its worth as a trade-in.

For editorial content appearing on sites affiliated with the Carsales Network, the prices will be listed with the qualification 'price guide' in lieu of recommended retail price.

This price will not include on-road costs, unless the motorcycle has been actively promoted by the distributor with a 'rideaway' price.

Any reviews published prior to the imposition of the new legislation will continue to show the price without on-road costs included, barring the exception of motorcycles sold with rideaway pricing.

Prices as tested for reviews will need to include the state in which the test motorcycle is registered and the applicable on-road costs. In such cases as the motorcycle company is unable to supply the total 'rideaway' cost of the car on test, we will publish 'POA' for the price.

The intention of the new legislation was to aid the consumer by clearing up the bewildering number of pricing incentives offered by dealers, such as with/without charges for compulsory third party insurance, registration, dealer pre-delivery, pay half now, low interest finance, etc.

Unfortunately the new legislation clears up confusion, but does so with the unforeseen side effect of reducing the information flow to the consumer.  The question remains: is the consumer better served by the 'Clarity in pricing' legislation?