US Spec-ed Vehicles

[Nik_Endeavour]

Does anybody know why all US vehicles (from EU Manufacturers) have as standard most equipment that in the EU are paid accessories. And is not that they cost more over there (before TAX at least) ? Why do we get screwed over by the manufacturers (MB included)

 

[Rory]

For European cars, I don't think that's actually true, except to say that the entry level cars are much higher level than in the UK.

So the entry C Class, for example, is the C300 (£16000 + tax ). But it's still manual transmission. It does have MB Tex upholstery and a sunroof, but that's about it. I know on the 3 Series BMW, entry level 328i also has a sunroof, but doesn't have the rear parking sensors that are standard in UK.

As to why we get screwed, I'm baffled by that too. I guess the market in the US is more competitve - certainly US and Japanese cars look astonishing value. Another thing that amazes me about the US is that used car prices look quite high - a 3yr old E Class is about the same price in both UK and US, yet it started off way cheaper when new in the US. This means the cost of ownership is hughly cheaper in the US so a lot of new cars are on low cost personal leases.

The UK seems to have particularly low used prices - colleagues from eleswhere in Europe are always amazed by how cheap used cars are in the UK. I put a lot of it down to our registration plate changes, which "age" cars very quickly.

 

[rf065]

A few years ago I compared some Ford & GM cars. Although the USA cars seemed a lot cheaper, the UK cars had things like ABS etc as standard when the USA ones listed items like that as an option. It can be very difficult to compare like for like.

When the Austin Montego was sold in the UK for £8500, they imported them to the USA and sold them for £5500. I expect the average American would just refuse to pay our prices, hence the manufactures have to sell them as low as they can.

Russ

 

[DaveK]

If we weren't so spineless, we too would refuse to be had over. Look no further than threads on here as people tell how they have been badly treated by MB sales staff but still go on to buy one !

 

[whitenemesis]

If we weren't so spineless, we too would refuse to be had over. Look no further than threads on here as people tell how they have been badly treated by MB sales staff but still go on to buy one !

Even without your sig, I would recognise your posts! Such vitriolic rhetoric with no positive contribution to the thread.

WRT EU imports to the States, I think its very much a status thing, US cars tend to be rather "agricultural" and somewhat crude. Add a few "toys to the import and "Wow!"
But Americans are very loyal to domestic goods and so imports must be very competative (i.e. value for money, bang for bucks, loaded!)

 

[Rory]

I'm in Ft Lauderdale and caught a few ads on TV while watching the news. The local BMW dealer ran a series of ads, which answered one question I'd had; what are there so many BMW X3's around here!
BMW X3 3.0i auto - $21999 !!
BMW328i - $297/mth personal lease
BMW750iL - $797/mth

Also another dealer was advertising Ford Focus (looks like ours but no idea of spec) - $8999.

Of course all these are ex-tax (6% or so and various registration fees etc). On the 3 series BMW they might add up to around $3K.

 

[jaymanek]

a lot of it is the taxes here in the uk... try importing one from the US... you will find its almost cheaper to visit your local dealer...

also at the moment you cant really compare with $ as its so weak...

 

[Rory]

a lot of it is the taxes here in the uk... try importing one from the US... you will find its almost cheaper to visit your local dealer...

also at the moment you cant really compare with $ as its so weak...

Where is the right level for the £/$? Whatever rate you use, and even adding VAT & OTR charges, and something for the RHD conversion, those BMW prices (and MB must compete - I know they do even on the new C Class - C300 - here) are waaay cheaper than we see.


It obviously wouldn't make sense to import, but look at it the other way around - even UK built cars like Jaguar XF V8 Luxury is under $50K *list* here.

 

[sylvester]

Tax in the UK certainly plays a significant part in the price differential, to start with there is the “special car tax” levied at 10% to which is added “VAT” at 17.5%, so a minimum of 27.5% of the list price is going straight to the nice people at the treasury. Although I may be wrong but I believe that these taxes are compound so would actually be a higher percentage.
Not to mention the new showroom tax announced in the last rip of round, err sorry budget.

However even with this taken into account it would still seem that the US consumer is getting a better base deal from the manufacturers with higher specifications all round.
Its hard to find any MB model that does not ship with the full command system in the US, as well as 4Matic all wheel drive being standard across a large part of the range, all for less than the two wheel drive models offered in the UK and most of Europe. Not to mention the reduced shipping costs to Europe. I’m not sure exactly how much it costs to ship a car to the US from Germany but its not going to be cheap plus US import tax’s so MB must be making less on the US models. Although some companies such as BMW have US based production facilities for some of their models, which also means lower labour and no import tax.

Undoubtedly the US is more competitive with domestic products being significantly cheaper, although in most cases more basic.

While the calculations to arrive at a level comparison are complex with many factors it does seem to boil down to the UK & European customers being prepared to pay more, so simple economics dictates that we will be charges more. We see the same thing with a whole range of goods and services, look at itunes, same product, same costs different prices depending on where your are.

Rant Mode Off

 

[crockers]

a lot of it is the taxes here in the uk... try importing one from the US... you will find its almost cheaper to visit your local dealer...

also at the moment you cant really compare with $ as its so weak...[/quote]

Not really - I can remember $2.40 to the pound....

But what we are all missing is the car price / earning ratio.

To many Americans paying $30,000 dollar for a car is equivalent to us paying £20,000 so even though the exchange rate states $2 to £1 it is nearer $1.50 to £1 as far as earning go to but goods...

 

[Dieselman]

which also means lower labour

Is that correct given total additional employment costs.

 

[scumbag]

Even without your sig, I would recognise your posts! Such vitriolic rhetoric with no positive contribution to the thread.

You will be accused on personal swipes next. To add to his growing list of supporters.


I think the average wage in the US is less that the average in the UK. This would account for the difference in price. Although I would assume, that you could import a car, and if the savings were significant, you could put up with left hand drive.

 

[DieselE]

The UK seems to have particularly low used prices - colleagues from eleswhere in Europe are always amazed by how cheap used cars are in the UK. I put a lot of it down to our registration plate changes, which "age" cars very quickly.

I know that tax issues are changing things but don't we still have a larger proportion of new cars sold to companies than in most countries? This means a significant number of lease cars dropped on the market a few years later and it is this (IMHO) that depresses the used car market in the UK.

 

[st4]

You will be accused on personal swipes next. To add to his growing list of supporters.


I think the average wage in the US is less that the average in the UK. This would account for the difference in price. Although I would assume, that you could import a car, and if the savings were significant, you could put up with left hand drive.

It was a harsh post and not usually in keeping with the friendly nature on this forum.

 

[television]

There is another factor, that is what extra's. It took 20 years or more before air con to catch on over here for one.

It is not only the USA where things are different. Sweden has what they call packets, One packet will have say heated seats, leather and memory, as a comfort packet, and another called sports packet with all of the things that that may contain,, you do not have the same option list there as we have, and you just cant choose one item, you take the packet.

Also when building from new, its far cheaper to put the things on as standard during the build.

The SL comes with the same spec as here in the USA apart from the heated windscreen as an option in north USA and N Canada

 

[Diesel Benz]

The pre-tax German price for an S500 (long wheelbase, US only has LWB) is €83900. The US price is $87575. That equals €56653. The US car would have every equipment a Euro car has standard, probably a few more.

Europe is protecting our own car manufacturing by making it expensive to import European cars from the US. We are also protected from getting our own cars cheaper than we get them here. I don't see here any other explanation than the fact that big companies see the presence on the US market so important that they sell goods a lo cheaper there. Perhaps to make things look good for share holders, not sure about the percentage of US shareholders for MB.

 

[rf065]

The pre-tax German price for an S500 (long wheelbase, US only has LWB) is €83900. The US price is $87575. That equals €56653. The US car would have every equipment a Euro car has standard, probably a few more.

Europe is protecting our own car manufacturing by making it expensive to import European cars from the US. We are also protected from getting our own cars cheaper than we get them here. I don't see here any other explanation than the fact that big companies see the presence on the US market so important that they sell goods a lo cheaper there. Perhaps to make things look good for share holders, not sure about the percentage of US shareholders for MB.

On those figures, the USA car is costing approx, £44,800.
MB UK site says the S class starts from £55,885 & the S500 is £70,000?

Russ

 

[Dieselman]

On those figures, the USA car is costing approx, £44,800.
MB UK site says the S class starts from £55,885 & the S500 is £70,000?

Russ

Pre or post taxes?

 

[Bobby Dazzler]

Motor manufacturers would not sell in the US if it didn't make commercial sense.

I suspect that selling to the US market - albeit at a lower price than say the European market - gives the motor manufacturers the economies of scale to be profitable overall.

So the irony is that if the motor manufacturers didn't sell cars in the US, we might still pay a higher price for the cars anyway!!

PS I have no evidence for the above, just a little thought and imagination.

 

[nick mercedes]

Does anybody know why all US vehicles (from EU Manufacturers) have as standard most equipment that in the EU are paid accessories. And is not that they cost more over there (before TAX at least) ? Why do we get screwed over by the manufacturers (MB included)

US comsumers get to pick from a handfull of models, nothing like the choice we get.

I imported a C240 (W203) from America some time ago, leather faced seats instead of leather seats etc.

They really aren't the same cars, and don't forget generally in America you get what you're given (what's in stock on the day and what your monthly payments will stretch to), rather than get what you want.