How come cars are way cheaper in the US than Europe?

How come cars are way cheaper in the US than Europe?

I live in Germany and compared prices between USA and Germany. Turns out cars are way cheaper overseas , e.g 911 turbo starts at 140k in Germany , whereas it starts at about 94k in USA. Do you want to know the reason behind this?

Here are the conversations between different people from different countries reported on reddit forum as thus:

psycho_coconut is a US based member reported that That stuff can all be negotiated in the US to an extent (except tax) but regardless it does bring the cost up.
Depending on what state the car buyer lives in they can see a sales tax of ~%6 — ~%11.5 which translates to somewhere between about 5-12K. Just in taxes.

Price Comparism

bal00 also from US reported that Yep. If you compare pre-tax prices, there’s barely any difference.
911T (Germany) – $102,950 plus tax (19% VAT)
911T (USA) – $102,100 plus tax (varies from state to state)
So it’s mainly the tax rates that are different.

Darkfire757 is also from Uinted State of America claimed that Taxes mostly. Yes, taxes are not included in the advertised prices of US cars, but the structure is different. Here, we pay sales/registration taxes and various “document” fees, but that’s it. In much of Europe y’all have various displacement/environmental taxes, we do not. For vehicles with a V8 or large 6 engine, these can be a ramrod up the ass.

probablyhrenrai is US based give his contribution that Tariffs, maybe? Are imports in general more expensive for you guys, or is the issue specific to American cars? Maybe it has to do with the car’s size, or it’s engine displacement? American cars tend to be bigger than European ones, and the engines in our sporty cars (mustang, camaro, challenger) tend to be big.

Kaleido88 from Germany give submission that We have way less taxes baked into the price than you do. Used to be cheaper to buy a car in Germany and import it here, but Mercedes lobbied the shit out of our lawmakers in the ’80s and it became illegal. Then your government fucked you on taxes for decades so it’s finally cheaper to buy it here. At some point we’ll probably hit some kind of parity if trade deals even out in 10 more years, but by then no one will be able to buy cars anymore anyway…

The Effects Of Taxes On Car Auction In Australia And Singapore

Likewise car auctions is very expensive in australia and singapore like three folds when compare to the price in US take for instance, in australia, a base level 911 with no options is over 170k usd.

It’s taxes basically that causes that in Singapore. It is so small that the government does not want you to buy cars at all and dissuades you by jacking up taxes. Some cars apparently can get up to 3x the US price there reported by ihave2eggs to follow up the conversations you can visit the reddit forum here.


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