Why oh why do we pay so much more for our new cars than the Americans?
According to Evo magazine the new BMW M3 will cost in the low $60,000s range when it goes on sale in the US next Spring. That's just over £30,000 This is a car that would cost us in the UK over £50,000 !!!!!!
I remember years ago that cars in the US cost about the same in dollars as in pounds this side of the water so things haven't changed.
I wonder if there is still a large price difference between the UK and Europe because I haven't heard so much about people importing their new car from across the channel recently.
You'd think that with the strong euro and weak dollar that these imports would be goingthrough the roof in the USA. I suppose that the potential market there is just so big that the likes of BMW will pare margins to the bone in order to maintain a market presence in the hope of better times ahead.
It's always been the same $1 = £1 for US imports, you are right. It irks me too though there's not much US stuff I actually want to buy.
Nice to hear from you on the forum again, hope the Spider is going well. Are you up for another Bristol area meet? The Haynes one is getting on for a year ago.
I was in America a few years ago and a charity was raffling a car in the local "mall" It was some kind of GM Cavalier,2.5 V6,Auto,air con etc.-quite a nice car in fact.I did the math and it cost the equivilant of £8000,when a poxy Calibra cost £14000 here!! The old model Suzuki Swift was badged as a Chevrolet (!!!) in the states and my wifes cousin bought a brand new one for the equivilant of £2500! Rip-off Britain is right.
The Americans have great buying power because of their size. The prices are much lower there than Canada too. Lots of Canadians are crossing the border and buying vehicles, savings range from 9K to 30K and up. Our dollar is stronger but we are still paying more for everything.
I was in america in september and I couldn't believe the deals they had, you could buy a Ford F150 for like £9k AND get a rebate!!! I was astonished as that would probably cost £20k here. But then the minimum wage there is around £2/hr or something stupid like that
Cars are produced very cheaply there for the reasons stated, low(ish) labour costs, low tax and economies of scale, they produce a lotta automobiles! But it's a very big and lucrative market to be in, so manufacturers from other countries want to be players but have to, by and large, reduce their prices to match local ones I think?
There's also the fact that the US buying public will not stand for it. I went to visit my uncle in Chicago a few years back and petrol went up to nearly 90 cents a litre. The public were outraged and protested. A couple of weeks later it was back down at 70 cents.
When that happens over here, we have a little show, realise nothing will happen so we just get on with it and pay it!
We have long been exploited by the retailing industry and others because of our sheeplike willingness to pay over the odds for everything. As a nation we think it unbecoming to haggle or even play one supplier off against another. We are alos, of course, one of the biggest credit card user nations and really dont seem to car what the cost of anything is just as long as we have the ability to find that credit card payment every month. Not for nothing does the World's retailers refer to the UK as "Treasure Island" !
If the former, how the hell can they justify the price difference?
Don't forget that the price difference includes more than just the car and transport fees. You've got to take into account costs of showrooms and offices, employee pay and so on. It's far more expensive to do business in Britain than most other places.
Not to mention that they've got to look at the market they're competing in and be competitive in that market.