Red141

Arthur, what part of the states? Maybe I'll see you at a local event. Good luck.

Paul Jennings

Yes understand the problem, my only thoughts were that I know with europe if the car is more than 6 months old and more than 6000 miles it is classed as second hand, hence you do not pay VAT (tax) at 17.5% when importing to the UK because the car has had tax paid in whatever the country of original registration, (ie France) just thought it may be a lophole for you !!

And I thought our prices were a rip off .......... well they are, but not as bad as yours eh !

All the best
Paul

winovin

Arthur,

I am an Aussie so am familiar with the intricacies of the Australian tax system - I don't disagree with the relative price of Porsches in Australia making it more attractive to import one. I voted with my feet and now live in the USA.

The US is no bed of roses either - the headline federal marginal rate looks great, but add state tax, city tax, AMT (alternative minimum tax), taxes and charges explicitly passed on by other service providers (e.g. check out an American phone or cable bill, and there are lots of taxes and ancillary charges).

On the bright side, Aussie car prices are getting better, and the rally in the A$ should improve the picture in the future. Remember when Australia had a 57.5% import duty on cars? Plus a 30% sales tax (if I recall correctly). Things are brighter than ever on the car front.

I still get my Wheels and Motor sent to me from Oz, and read the Sydney Morning Herald online, plus the biannual visits keep things in perspective vs the US.

I think the real crux of Australian prices vs the US is that the US has a very strong level of price competition for products - this is for several reasons, including size of market, and also because it allows a manufacturer to achieve economies of scale, and then premium price in other markets.

The UK is the worst when it comes to soaking people for buying products. I think you will find that a 911 costs around GBP 56,000 which is about $136,000, but they have (or did have) waiting lists, and I don't think it is taxes that bulk up the price.

The flip side is that food and service prices and lower in Australia than the USA - in my experience, the cost of living in Australia is higher than the USA.

Net disposable income may be higher, but medical/drug costs are higher - you can buy anti-histamines for less OTC in Australia than the US insurance co-payment - they cost about 6 times as much in the US...

Anyway, I digress - good luck getting your car. Once you know when/where you are going, I might be able to give you some USA tips.

winovin

Oops! I meant that the cost of living in the USA is higher than in Australia.

I can also recommend a very good salesperson for you if you get to that point.

ArthurK

AC, if we move it will be to Detroit. If we move it will be due to my wife not me. I run my own consulting business but she works for a large US car company. So unfortunately it will be to Detroit for us. At least I get a 2 year holiday Imagine the damage you can do on your bank balance with that kind of free time on your hands

Winovin, totally agree. Human nature always likes what it thinks is rosier. I am not deluded that the situation in the US is not that much better once you take everything else into account. If anything it turns out the same. The unfortunate thing is that our government thinks by imposing a 45% luxury car tax on cars over US$40,000 it means you will go buy local. What a crock. They are not protecting the local car industry just filling their pockets. If I can take advantage of the potential situation to my benefit I will, if I can then I will continue filling their pockets