Why are car prices generally higher in Europe than in the United States?
In: Economics
european governments really don’t want people to have personal vehicles; so they enact more taxes to price cars higher
Most European cities have more roboust public transit and biking than any American city
It’s the other way around, for the past years.
MSRP in Europe includes VAT, which ranges from 17% in Luxembourg to 25% in Sweden. (Edit: also, cars built outside the EU are subject to 10% duty. The U.S. rate is 2.4% and CA/MX are exempt.)
Once you’re comparing pre-tax prices, cars in Europe tend to be cheaper to start than the same model in the U.S. because options and engine upgrades that are standard in the U.S. are often optional in Europe.
Depends on what car you want. A completely new car in the US is usually pricier than a new one from Europe. But if you want a Silverado or ram you’ll get it cheaper in the states
They’re more expensive in Europe because of higher taxes, stricter rules, and the difference in money values.
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