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      01-03-2013, 04:49 PM   #54
Lieutenant Colonel

Drives: F30 328i M-Sport
Join Date: Mar 2006
Location: Hong Kong

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Originally Posted by MotoEV View Post
I've read other countries pay more for a comparably configured car than the USA but I thought VAT and other taxes reflected the difference. Is it assumed US buyers want lower spec'ed cars or are other factors at play?
It depends mostly on the price a particular market can take, then comes volume. Obviously the margin is different for every market & BMW adjusts the standard spec depending on local factors (i.e. consumer requirements, technical standards, operating conditions etc). Wht their main competitors do in that particular market is also a factor.
Traditionally US is a very low margin market, with European markets being higher margin (except for UK). Nowadays Oz, NZ & Japan have become very high margin markets due to their currency strength. One or two Asian markets, such as Hong Kong & Macau, have low margins & low volume.