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(Post Link) post #1 of 18 Old 03-11-07 Thread Starter
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Rip-off Great Britain

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.
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Re: Rip-off Great Britain

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.
 
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Re: Rip-off Great Britain

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.
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Re: Rip-off Great Britain

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.
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Re: Rip-off Great Britain

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
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Re: Rip-off Great Britain

we pay so much more because we pay so much more tax on everything, especially compared with america.
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Re: Rip-off Great Britain

Don't forget the higher cost of doing business over here. Plus US costs rarely include Sales Tax.

That said, I do think they use that as a bit of an excuse to ramp up the costs over here.
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Re: Rip-off Great Britain

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?
 
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Re: Rip-off Great Britain

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!
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Re: Rip-off Great Britain

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Originally Posted by ACAPULCO AL View Post
we pay so much more because we pay so much more tax on everything, especially compared with america.
Same this side of the world, tax, tax and more tax.
Cars cost around the same as yours, but we earn less than half.
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Re: Rip-off Great Britain

I was looking at a watch on the internet a few weeks ago-the UK price was £55-00,the USA price was aprox' £29-00 !.
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Re: Rip-off Great Britain

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" !
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(Post Link) post #13 of 18 Old 07-11-07 Thread Starter
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Re: Rip-off Great Britain

Going back to the start, I wonder where the BMW M3 is made?

Is it made in Europe and then shipped to the States with all the costs that entails or is it made in the States? If the former, how the hell can they justify the price difference?
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Re: Rip-off Great Britain

If somebody were to charter a cargo ship, buy a load and sail them back to mainland Europe, they would clean up!
 
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Re: Rip-off Great Britain

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Originally Posted by TANKMAN104C View Post
Going back to the start, I wonder where the BMW M3 is made?

Is it made in Europe and then shipped to the States with all the costs that entails or is it made in the States? If the former, how the hell can they justify the price difference?
Im pretty sure they make bmw's in America, theres a plant in spartanburg (even sounds German)
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Re: Rip-off Great Britain

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Originally Posted by TANKMAN104C
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.
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Re: Rip-off Great Britain

CG is right.

We misunderstand just how vast the American market is. More is less (unit cost).

Paul.
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Re: Rip-off Great Britain

I don't think it's just that though, Europe collectively is a similar sized market to the US, no? There is relative price harmony across Europe yet the US does seem to have prices all its own.
 
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