Prices of automobiles in the US as compared to

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Discussion Overview

The discussion revolves around the pricing of automobiles in the US compared to other countries, particularly India. Participants explore factors influencing these prices, such as import duties and market dynamics, while also questioning the condition of used vehicles at lower price points.

Discussion Character

  • Debate/contested
  • Exploratory
  • Technical explanation

Main Points Raised

  • One participant notes a friend's experience with a used Mercedes priced at $3,500 in the US, suggesting that US automobile prices are lower than in India, potentially due to import duties.
  • Another participant expresses skepticism about the condition of a $3,500 Mercedes, indicating that it may not be in "very good" condition.
  • A third participant provides a general price range for new Mercedes vehicles in the US, suggesting that a used car at that price is likely to be in poor condition.
  • One participant mentions using blue book values for approximate pricing in the US market.
  • Another participant questions the rationale behind varying import taxes across countries, suggesting it may be to protect domestic industries.
  • A participant discusses India's high import duties despite having few car manufacturers, and raises a question about lower prices for certain goods in duty-free zones at airports.
  • One participant clarifies that some goods may be duty-free rather than lower-priced, and mentions Singapore's high tax on automobiles as a measure to control car ownership due to limited space.

Areas of Agreement / Disagreement

Participants express differing views on the condition of low-priced used cars and the reasons behind import duties, indicating that multiple competing perspectives remain without consensus.

Contextual Notes

Participants reference specific markets and tax structures, but the discussion lacks detailed data or comprehensive comparisons of automobile prices and import duties across countries.

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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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).
 
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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Why do some countries levy high tax on imported goods such as cars and others less?
 
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:
 
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?
 
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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