Buying new cars in US vs. other countries

File this under random curiosities...

Why does it seem so depressing buying new cars in other countries vs. the US? I look at Toyota dealers in Australia, UK, Germany, etc., for example, and the prices are so damn high for everything, stock on hand is low, finance terms are inflexible, and interest rates are crazy high. And to top it off, disposable incomes in these countries are usually lower than they are in the US.

Case in point, look at this Camry at a dealer in Sydney

https://sydneycitytoyota.dealer.toyota.com.au/inventory/camry/sl/sedan/2019/JTNBF3HKX03036674

$45k
Interest rate of 6.26-16.43% (!!)
You have one option of repayment term and thats 47 months at $799/month.

This particular dealer only has 2 camrys in stock. This situation is similar in many countries I have found..

Compare this with a typical US toyota dealer where there are easily 40+ camrys in stock, costs are way lower, finance rates can be had for as low as 0%, and there are many ways to structure payment methods.

What gives?

 

Currently the dollar is very strong; making almost everything cheaper in the US vs the world. Then you add taxes, in the EU they add a 25% VAT to just about everything.

 

Really makes you appreciate living in the US sometimes. We often take these things for granted...

 

There is more to it OP

GB and some of the other countries have a use tax, luxury tax and other such fees which they include in the vehicles price.....plus the US is probably the biggest market for autos, if not #1 then probably #2, OZ does not sell as much also, supply and demand.

 

That makes a lot of sense honestly. I am aware that many countries include taxes, fees in car prices. Australia evidently calls it a "walkaway" price.

The high overall cost isn't the biggest issue to me though, it's the entire experience. As I said in my first post, dealer stocks are usually low, interest rates are outrageously high, and finance terms appear less flexible. All of these things contribute to a new car buying experience that seems depressing to me.

When you think about what makes new car buying enjoyable here in the US, or at least the thought of it, it is having a large selection of vehicles to choose from, prices that allow you to afford many different models and trims, and flexible financing that can comfortably work with your budget.

Just trying to understand it is all.

 

Taxes. In Brazil the toyotas, hondas, GM, Fiat - all made in Brazil had 40% tax. Imports were at...I don't know, prohibitive. Said that, what is also interesting is that these countries have (in general) a decent public transport system what make cars kind of a luxury. Perhaps, that is why taxes are so high.

 

Places like GB and OZ encourage long term ownership also. It becomes a part of you basically.

China is a good example. They have what equates to national vehicles and “ fuck you round eye” vehicles...(these you buy at Pepboys or Vatozone and last about a month)

The national vehicles cost as much as some of those families make in 2 years, so they last and the people are encouraged to keep them that way, so sales are lower and prices are higher to make up for it.

 

In Japan, the taxes rise as the car ages. They force people to buy a new car. It's why there are so many good used cars that get shipped from Japan to other countries, such as S America.

 

In the US it is about the transaction. Dealers have convinced a small percentage of people to buy a new car every three years. This can be worded as a lease or loan on the full price. These folks pay the manufacturers profit and cover the dealer op costs. Then the dealer resells that or an identical car either to the same person or another. Typically with a trade, netting two more transactions. Cash flow is king, Congress taxes the gasoline not the drivers and even that is subsidized by tax. So, our culture and beliefs lead to more cars per capita, and more reliance on a car to begin with. Think of all the struggling people who would be much better off if they didn’t spend thousands of dollars a year owning and operating a car.