Quote:
Originally Posted by The Fatal Gamer
Can someone explain the logic behind selling the same car for 20-30% more in Germany than it costs in US?
A car has a certain production cost to the manufacturer, it's X. If BMW can sell an M3 for 50k USD in US, it means they are able to make profit. Whether they sell the same car in US or Germany, its irrelevant, because all cars are made in Germany. So why do they charge so much more in Germany? Not only they charge in Euros, but they also charge a lot more in Euros.
I know the whole tax argument and I don't think even without the tax the prices line up.
As for the taxes, I never understood european politics. By taxing these cars at such high levels, they prevent people from buying them, hence in the long run this hurts their own economy. The US is where it is because its a consumption based economy where they keep the prices at an "affordable" level. If a 100k car is taxed at 7% in US, yes maybe its 1/4th of what a European government makes on the car, but because in the US many more people are able to afford the car, the government ends up getting more tax cumulatively.
The prices I see in these cars are just jaw dropping. 100k Euros for an M3? That's like 136k! You can buy 2 M3s for that price (most would buy a 911 instead).
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Yup +1
Well it hits BMW slowly as I posted here:
http://www.f30post.com/forums/showpo...6&postcount=26
But they won't change anything as now China and US are the preferred markets.