Australian MG4 Owners React To Price Cut "Compensation" Offer

During a discussion with a Drive.com.au journalist recently about the massive MG4 EV price cuts MG Australia had announced, chief commercial officer Giles Belcher commented:

"We've put together an offer for those people [who] bought an MG 4 at the higher price point in 2024".

"They just need to contact their dealership and the dealership will take them through what we can offer those people."

Belcher wouldn't elaborate about the details of this offer in his discussion with Drive.

When I asked them directly an MG Motor Australia spokesperson told me:

"MG Australia recommends any concerned owners reach out to their dealership to discuss what we can offer them."

I don't see the point in such secrecy as the offer was shared online by many MG4 owners quite quickly:

Click to expand

Image by - Neerav Bhatt

I've been in touch with quite a few Australian MG4 owners who contacted their MG dealer to find out what the offer was and asked for their reaction, as well as reading many public reactions on Australian EV social media groups.

The reactions can be roughly placed in 3 groups:

• Shrugs - Prices go up and down, it's called capitalism. At the time of purchase buyers thought the car was fair value.
• Unhappy and Confused - MG Australia would have been better off saying nothing as the "offer" is worthless
• Very Negative - Quite angry at the loss of resale value, with any brand loyalty burnt for good.

A far more effective relatively low cost way to generate some goodwill amongst Australian MG4 owners who purchased their cars before the big price cuts would have been to offer a free first service at 2 years/40,000km instead of the advertised $296.

These are some quotes from MG4 owners below, I've left out their names so they can't be identified easily:

"Spoke with my dealership about the compensation and they said it's a better trade in value (fleet pricing) when and if an MG4 owner decides to trade in".

"It’s not a deal - or compensation. Makes me not want to purchase another MG, even though I love our MG4. Either do nothing or offer something real. Offering to give fleet pricing for another purchase, and only if trading in an existing MG4… it’s just losing more money. Doesn’t inspire loyalty."

"Is Tesla offering such compensation? Many lost more than 20k"

"As an Oct 2023 buyer I’m not expecting anything from MG except the deal I got then. As for compensation, I’m in the ‘meh’ category. We live in a capitalist economy, the price of things go up and down according to all sorts of ‘drivers’ ( excuse the pun) and at point of purchase I never expected anything like what is being ‘offered’ by MG."

"Not like many MG4 owners will be trading for another MG unless the dealership experience changes drastically".

"I think 90% of people understand specials happen and people buying early pay more".

"Rang MG HQ who directed me back to my dealer. Dealer explained the compensation was broadly this: As goodwill, MG Australia will give a national fleet discount price to the purchaser of a new MG when they trade in their (overpriced and grossly devalued MG4) car. This applies to purchasers of MG4s purchased between Jan 1 2024 and September 19 2024 (so my MG4 2023 which is identical to the 2024 MG4 is not even included in this (sic) deal)".

"Compensation for what? You signed a contract for a product that you thought was worth the money at the time. A contract. And now you complain about others doing the same, later?"

"It’s a market - if prices rise do we pay MG compensation? Enjoy your car it will work itself out over the life of the car - cars are not short term investments ."

"My dealer agreed with me that this is a NO DEAL- 1/ I have 2 cars that do not need replacement and 2/ Even if I got a fleet deal what is the possibility in 12-18 months this deal is surpassed by a Tsunami of permanent discount?"

"The compensation doesn't make sense. You already have the car. I would have assumed they'd give you some freebies or maybe cashback. Very poor form from MG".

"I'm sorry for those who missed out but when you got the car you got it at a price you were happy to pay. It's not much different to when I bought my house. I wanted to buy one very similar a year earlier but didn't have the money at the time, a year later I paid almost 100k more. I accepted that and stopped looking at other houses I could have gotten if I didn't get this one. If they offer anything it's a bonus- that's life, accept it, move on and be happy, try not to dwell on what could have been."

"They certainly seem naïve as a business if they go to the press touting undisclosed compensation only for owners to find it's a discount on buying another one. If true that's nuts and will create a generation of brand unambassadors."