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Old 01-12-2014, 07:06 PM   #1
6_10
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Why are cars so much cheaper in America?

There's a thing I've been thinking a lot about lately, It's why cars are so cheap in the United States compared to in other countries, for my example Sweden. At the neighborhood I live in, the middle income is about 20 thousand dollars higher per year than the Americas's middle income. Still, there's not a lot of people driving Porches and Mercedes. I started to wonder why, so I did some research and looked at a Volkswagen Tiguan 2013 and I was shocked by the results. I could find numerous of Tiguan's from an American car site that only cost 30 thousand dollars brand new, but when I looked at Swedish car sites I couldn't find a brand new Volkswagen Tiguan 2013 for under 52 thousand dollars. Why is this? Sorry for my lack of knowledge, I'm thirteen.
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Old 01-12-2014, 08:06 PM   #2
Black Lotus
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Re: Why are cars so much cheaper in America?

Depends on the country---
Import duties and taxation are probably lower in the U.S. than in a lot of places.
I know a fellow in Thailand that bought a new Ford GT for $165,000 from the US., and by the time he got it shipped, registered and ready to go, it cost him about $600,000 because of duties based off the size of the engine, etc.
It's also a LH drive car in a RH drive country. He must have really wanted it!
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Old 01-13-2014, 02:11 AM   #3
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Re: Why are cars so much cheaper in America?

It really depends on the policy in different countries, for example China has the famous 17% Value Added Tax. To get a imported car, we always spend twice the price than in US.
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Old 01-14-2014, 10:18 PM   #4
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Re: Why are cars so much cheaper in America?

One example is the European car - because the American car market is the most competitive market in the world. The dollar is very weak and European car makers are probably not making much money in the States now.
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