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06-08-2007, 02:41 AM | #24 | |
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Last edited by lucid; 06-08-2007 at 03:06 AM.. |
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06-08-2007, 07:41 AM | #26 | |
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In general, I agree to what you are saying. But there is one more factor: In Switzerland and Germany the price is the same (+-2%). In both countries there is no special tax on cars. In Switzerland VAT is 7.6%, in Germany 19%. The price is about 25-30% higher than in the USA. So my conclusion is that the price does not only depend on taxes and import/export ratio but also on the buying power of a region, also know as BigMac index... |
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06-08-2007, 08:37 AM | #27 | |
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06-08-2007, 05:41 PM | #28 | |
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There is also a political connection between car prices and the amount of industry related to cars in any one country. I.e. in Germany the car industry alone is huge, but you also have a lot of employees/taxpayers connected to this business through subcontracting and so forth, this makes it important for the government to ensure a steady growth, and one way to do this is avoid taxes. Another example is Sweden. Although the cars there are not cheap, they still cost much less than in Norway. Sweden has Volvo, Saab etc and much lower taxes. Besides some aluminium parts, Norway is not really that dependent on the car industry, this makes it easy for the politicians to use cars as a big fat milk cow. 100% + tax on new cars, road taxes, environmental taxes, tire taxes, fuel taxes + + But, as was mentioned in another post, you also have to consider the "Big Mac" index, or people purchase power. Salaries in Norway are very high, and even though the comparative value of the M3 in Norway is high, it is not that much higher than for a guy in the US. One crude way to look at this is to compare how many hours an average person in the US has to work in order to buy an M3, compared to an average Norwegian? There are of course many other factors beside these, just wanted to air some ideas. |
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