Prices of automobiles in the US as compared to

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In summary: Import duty is levied on the importation of automobiles to help protect local industries. In Singapore, the tax is 100% of the selling price of the car. This policy is designed to reduce the number of cars on the road and to reduce congestion.
  • #1
jackson6612
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Some days ago my friend who lived in the US was telling me that he was thinking of buying a used Mercedes car. That car was in a very good condition. The price was around $3,500. It's so cheap when compared to Indian market. I think that automobiles' rates in the US are quite less as compared to autos of the same manufacturers. I suppose it has something to do with import duty, the tax levied on the importation of automobiles. What do you say on this? Please let me know. Is there a list/chart which compared the prices of automobiles in different countries, or importation tax/duty.

Thanks for your help and time.
 
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  • #2
jackson6612 said:
Some days ago my friend who lived in the US was telling me that he was thinking of buying a used Mercedes car. That car was in a very good condition. The price was around $3,500. It's so cheap when compared to Indian market. I think that automobiles' rates in the US are quite less as compared to autos of the same manufacturers. I suppose it has something to do with import duty, the tax levied on the importation of automobiles. What do you say on this? Please let me know. Is there a list/chart which compared the prices of automobiles in different countries, or importation tax/duty.

Thanks for your help and time.


I'm doubtful that a $3,500 mercedes would be in "very good" condition, but I could be wrong. Overall, it's probably a supply-demand dynamic paired with differences in import/export duties (Germany for example has zero tax on exported products, but imported products are taxed).
 
  • #3
A new Mercedes (lowest-price class) costs over $30,000 in the US. It seems to me that a used Mercedes at $3,500 is very likely to be in bad condition.

(I know practically nothing about the Mercedes market in the US, but a quick Google search for "Mercedes prices" shows that there are several "classes" of Mercedes models with list prices ranging from somewhat over $30,000 to well over $100,000.)
 
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  • #5
Why do some countries levy high tax on imported goods such as cars and others less?
 
  • #6
It's often to protect domestic industries by raising the price of imported goods. For a definitive answer for your country, ask your politicians. :wink:
 
  • #7
India doesn't have too many car manufacturers but it still imposes high import duty. I have heard one can buy cigarette packs and other stuff at lower prices because airports are regarded as international sections lying outside the import/export duty jurisdiction. Is this true?
 
  • #8
Its not lower prices, but without any form of tax, that is to say Duty Free.

For automobile in Singapore, if i remember correctly, the tax is 100% of the selling price. The the car is twice as expensive compared to else where. And there is such a tax to reduce the number of cars on the road. Singapore is too small for everyone to own a car. I doubt other countries tax for this reason though.
 

Related to Prices of automobiles in the US as compared to

1. What factors influence the prices of automobiles in the US?

The prices of automobiles in the US are influenced by a variety of factors, including the cost of materials, labor, and transportation, as well as supply and demand, economic conditions, and the cost of regulations and taxes.

2. How do prices of automobiles in the US compare to prices in other countries?

The prices of automobiles in the US may vary significantly compared to prices in other countries due to differences in market demand, production costs, and government regulations. In some cases, the prices of automobiles in the US may be higher or lower than prices in other countries.

3. Why do prices of automobiles fluctuate over time in the US?

The prices of automobiles in the US can fluctuate over time due to changes in market conditions, such as shifts in consumer demand, changes in production costs, and fluctuations in the economy. Additionally, new models and technologies can also impact the prices of automobiles over time.

4. How do prices of different types of automobiles compare in the US?

The prices of different types of automobiles in the US can vary significantly depending on factors such as brand, model, features, and market demand. Generally, luxury and high-performance vehicles tend to have higher prices compared to economy cars and basic models.

5. What impact does the availability of financing have on automobile prices in the US?

The availability of financing can impact automobile prices in the US by making them more accessible to consumers. With financing options, consumers can purchase vehicles that they may not have been able to afford otherwise, which can drive up demand and potentially increase prices.

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