Just been to the States for a week (my fi=rst visit there) and am now depressed at how little money you can pay for a top spec car! BMW X3 - $30,000, Lexus 300 $20,000, Honda Accords $17,000. These are ex tax, but do taxes add significantly to the price?
It was also interesting to see 'normal' European cars with not so common engines - plenty of W8 Passats and quite a few new style Audi A8s with the larger engines. Petrol is now $2 a gallon (!), but I can't see diesels becoming common - only saw one diesel car, an older MB E class!
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I've also just come back from the States, and agree with everything you're saying. Although I did see a few diesel pick-ups. Not exactly frugal though, they were V8 diesels!
I'm sure I saw Ford Focii with V8 stickers on them too.
Brand new cars were advertised on the TV for as little as $9,000 (less than £5,000) and yes, these were small cars, but then again small US style, so you're talking about Focus size, not Ka size.
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You can buy a Mustang Covertible (3.8l V6) for around the price of a Streetka over hear!
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I lived in the US for a while (albeit about 20 years ago!). I found then that the US dealers are good at quoting a low sticker price and then banging on extra to cover all sorts of other things. By the time you get the car on the road with a reasonable spec. you can probably add 30% or more to the quoted price.
I must agree that cars are cheaper in general though. What really bugs me is that spares are MUCH cheaper over there, even for UK built cars like Jags!
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I don't deny that cars can be cheaper in the US, but don't think for a minute that you will get that cheap car advertised for $9000 at that price. The dealers often order in a stripped model with no options whatsoever then advertise that price on TV or in the papers etc. If you go in to the dealer looking for that $9000 car you will most likely be told that "It has just been sold, but we have many other models available at $$$".
As mentioned the prices advertised do not include sales tax (your VAT), registration (similar to your tax disc), tags (number plates) and any title transferral or handling fees. Also I have yet to come across a dealer that didn't tack on a "Dealer prep" fee which can range from $200-500, and good luck trying to argue that washing a new car and pulling the protective plastic off the seats shouldn't cost that much. A friend of mine even tried to get his new car delivered dirty and with the plastic in the hopes of avoiding the prep charge, but they didn't want to know.
Where the UK kills the US, is in the used car market. The prices I see used cars being sold for here can be much lower than in the US and you don't have to pay VAT on used cars while in the US, sales tax (at the same rate as a new car purchase) must be paid whenever you buy a used vehicle. Transferring your number plate and obtaining a new title (V5 equivalent, I guess) also incurs a charge.
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Reading through my post (sad isn't it?) I noticed that something I wrote might be misleading
"sales tax (at the same rate as a new car purchase) must be paid whenever you buy a used vehicle."
I meant that the sales tax % rate is the same whether you are buying new or used, not that the $ amount of tax would be the same for new or used.
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OK anyone ever imported from there? Does it make any economical sense too?
Say you pay £5000 for a car in the states. What is the total cost to you after you get it here including freight and import duties?
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£5,000 car will cost approx £500 from East coast to Southampton,+10% of shipping and car cost +17.5% vat.You then have to SVA if less than 10 years old approx £500, MOT and then register £38 + road tax,then number plates and incidentals.
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unless you have owned and/or been the provable only/main user of the car for a period which used to be a year, but may now be 6 months, in which case you can forget import taxes and VAT although you will obviously still have to pay shipping and SVA costs.
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I too have just returned from the USA and am usually foaming at the mouth with indignation at the difference in costs twixt the States and us. I saw a saturn 2.2 litre ''fullyloaded'' for about £8,000. We are severely overcharged for our cars and fuel but I am afraid we are a captive market and nothing would seem to deter the manufacturers;petrol companies and government from taking us to the cleaners. then they have the cheek to fill our local roads with humps to add insult to injury.
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I don't want to give too much away, but at present I have a little hobby; importing some automotive-related stuff from the US and selling it on Ebay. Even with express air-freight and import taxes I am making a good 25% plus profit. I'm only 'playing' though, I don't have the time to do it as a serious business.
It is crazy that you can buy European car parts and accessories at US retail prices, have them shipped over by air, pay import tax and VAT and then still sell them substantially cheaper than the local outlets...(and make a profit)!
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Friend of mine reckons the same as you, Aprilia. Thinks that he could sit at a computer all day & buy/sell & earn a good living just selling parts in e bay.
Do my head in that would, definite!!
VB
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On ABC world news about 6 months ago they had a report on car prices in Canada, seems they are cheaper than the US and lots of Americans were moaning about it. One motor company boss went on and said it was because the Canadians earn less.
Car delivery charges are quite high in the USA (delivery to dealer) so a headline figure might be quite a bit cheaper than an "on the road" price.
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