Prices of automobiles in the US as compared to

  • #1
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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.
 

Answers and Replies

  • #2
Mech_Engineer
Science Advisor
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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.

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
jtbell
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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.)
 
  • #4
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Last edited by a moderator:
  • #5
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Why do some countries levy high tax on imported goods such as cars and others less?
 
  • #6
jtbell
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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
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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
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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.
 

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