Category: Auto Tips

How Much Is A Car: Buy Cheaply


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Video: How Much Is A Car: Buy Cheaply

Video: How Much Is A Car: Buy Cheaply
Video: How to Buy a New Car for Cheap | BeatTheBush 2023, March
How Much Is A Car: Buy Cheaply
How Much Is A Car: Buy Cheaply




First, how much the car costs in Russia and its closest neighbors. Our and Ukrainian prices were predictably similar. True, Ukraine managed to join the WTO and, consequently, reduce the duty on car imports to 10% (in Russia it still holds at around 30%), so cars are a bit cheaper there. Germany and Great Britain, which are among the founding countries of the WTO, levy the same import duty - 10%. If we take the average in four countries (for each model) as the “normal” price, it turns out that the cost of these cars in Russia, Ukraine, Germany and the UK differs within 20%. For example, a BMW X5 with a 3.5 liter engine is 19% more expensive than the “norm”. There are also reverse examples: Honda Jazz is 13% cheaper in the UK. Moreover, the UK turned out to be closest to average prices - the overall price difference is 5.4%. In Russia, a little over 7%. The difference is due to both the presence of local fees and the policies of dealers and car manufacturers.


Prices in the Land of the Rising Sun are also close to "normal", although the government overstates the cost of European equipment, protecting its manufacturers. There are no benefits for buyers of local products, but Japanese firms offer more interesting (in comparison with export) configurations. You can also envy the people of South Korea: they buy national cars at much lower prices. For example, Kia Sporting costs $ 16, 400 there, for a Russian this car will cost 73% more - $ 28, 300!


This country is a true paradise for a motorist: cars there are 40% cheaper than in Europe! That is what the low cost of production, multiplied by the huge number of factories within the country, means. A number of models are made in Canada, from which they enter the USA duty free. It is also significant that the car market is very saturated (about 800 cars alone per 1000 inhabitants) and manufacturers have to wage a serious struggle not only in the field of service and sales, but also in the issue of pricing. The state’s tax policy also works to make Americans the most motorized country in the world. When buying a car, Americans pay an average of only 12% of sales tax and about a hundred dollars for registering it. And to buy a car in the USA is not a problem. In 2010, there were more than 20 thousand companies officially selling new cars (in Russia their number is only approaching 4 thousand). Of course, competition among dealers also leads to lower prices due to lower margins.


In Singapore, a picture of a different property. In 1990, in addition to duties, a limit was introduced on the number of cars that can be registered in a certain period. Twice a month, a competition is held in the country for an SOE certificate, which gives the right to purchase and “register” a vehicle. You can participate in the auction yourself, but 90% of buyers entrust this activity to dealers. In February 2011, for example, the quota was 3, 778 cars. Those wishing to buy a new car turned out to be noticeably more - 6108. It is not surprising that the cost of the certificate reaches insane numbers. So, in 1994, she reached a record 100 thousand dollars! But usually the numbers are more modest - in February, SOE was quoted within 43–62 thousand dollars (depending on the size of the potential purchase engine).

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