Originally Posted by TVMA Doc
THIS is what people aren't considering. We pay income tax and sales tax, plus lots of different local taxes where the places with the VAT it's all just a single tax.
Add all of these other taxes together and you are probably paying the same/more for that vehicle-you just don't know if because most of your money vanished before it even hit your wallet.
True. Other places tax consumption whereas we tax production but that does not account for some areas where it costs almost 3x as much. I think it depends on the structure.
BMWAG imports cars through BMWNA, who I believe buys the cars.
In South Korea my understanding is an importer buys a bunch of cars and imports them. I think the importer gets some sort of agreement from the gov't to import so many cars. The domestic market there has a BIG sway on that agreement I'm sure. So the importer can jack up the price well above the MSRP + tariffs because there's a significant supply shortage with a growing demand.
Then the US does not levy tariffs directly on imported cars which keeps prices down. In addition, many car makers find it cost effective to produce cars here.