PSA: Euro car prices include taxes*

"Out, but with a W - has found the answer" (belg)
07/23/2016 at 07:27 • Filed to: None

Do not directly convert them to USD. That is all, thank you.

*Somewhere around 20% VAT to be exact, unless you live in the car-hating eco-fascist country called The Netherlands.

DISCUSSION (11)

Svend > Out, but with a W - has found the answer
07/23/2016 at 07:37

VAT in the U.K. is 20% but buying cars internationally has several variables and the price converted from one currency to another should be a rough (very rough) guide price to looking and buying a car abroad.

If anyone is interested genuinely in buy a car from abroad then further leg work is needed. Thankfully bringing a car to the U.K. seems a lot easier than it does elsewhere.

Out, but with a W - has found the answer > Svend
07/23/2016 at 07:48

Should be a rough estimate indeed, if the VAT is similar (e.g. UK, Belgium, Germany), and/or pricing strategy is similar, as it is in the EU. Converting a German price, including VAT, to USD and giving the impression that that’ll be the American price, is a bit too rough imo.

(This was/is a semi-rant about American journalists doing the above, resulting in indignation and overblown reader discussions. Andrew’s M5 article put it on my mind again, but he’s far from the only one doing it, and he’s got the quality of his other articles to more than even it out.)

FSI - alcohol enthusiast with a car problem > Out, but with a W - has found the answer
07/23/2016 at 07:58

https://www.adac.de/infotestrat/fahrzeugkauf-und-verkauf/import-export/reimport-und-co/mehrwert-zulassungssteuern-eu/default.aspx

The German ADAC made a list of EU countries and their VAT.

(Source is in German)

Cé hé sin > Out, but with a W - has found the answer
07/23/2016 at 08:09

And it may well be taxes, plural. We have VAT and VRT which is CO2 based. Norway does the same but more so.

Out, but with a W - has found the answer > FSI - alcohol enthusiast with a car problem
07/23/2016 at 08:10

Fun fact: some manufacturers lower a car’s base price in countries with higher VAT. So you could save a couple of % by buying in another EU country (lower base price) and import it in your own (lower VAT).

FSI - alcohol enthusiast with a car problem > Out, but with a W - has found the answer
07/23/2016 at 08:17

The work colleague of my mother did that and bought a Opel Meriva for cheap in Hungary. The downside to this is that the owners manual is in that language (should be no problem as those can be found on the internet). I would be a bit concerned about the warranty.

Out, but with a W - has found the answer > FSI - alcohol enthusiast with a car problem
07/23/2016 at 08:21

The warranty is valid EU-wide, and dealers cannot refuse warranty work because the car was bought abroad.

BvdV - The Dutch Engineer > Out, but with a W - has found the answer
07/23/2016 at 08:26

Yes, it is about time they take that into account.

Also, the Dutch BPM is total nonsense. The 2016 Mustang works best as a global example, due to the wide range of engines. I’ve taken the Premium model for the US, since that is most comparable to the EU model.

Ecoboost (Premium) MT

US:$31,440(€28.646)

NL:€52.800($57,948)=€30.811+€6.470(VAT)+€15.519(BPM)

BE:€37.000($40,607)=€30,578+€6.421(VAT)

Doesn’t look too surprising, pre-VAT prices are almost equal everywhere, but that BPM does look rather high, doesn’t it?

GT (Premium) MT:

US:$36,645(€33.389)

NL:€115.200($126,432)=€34.976+€7.345(VAT)+€72.879(BPM)

BE:€42.000($46,095)=€34.710+€7.290(VAT)

Again, pre-VAT prices are most certainly within the same ballpark, but that BPM is killing the car, it’s higher than twice the pre-VAT price of the car. The BPM goes straight to the government if I’m not mistaken, so buying a Mustang GT here equals buying the government a new VW Touran police car I guess.

So, yes we are totally getting screwed over here in the Netherlands, So I think I might just “move” to Belgium or Germany once I’m able to afford nice cars.

Out, but with a W - has found the answer > BvdV - The Dutch Engineer
07/23/2016 at 08:38

The Mustang really is the best example of your absurd system. If you can choose, pick Germany: lower taxes, easier to modify cars, and better roads. On the other, we’ve got more (and better) beer and speak the same language (sort-of).

Edit: you’re probably suggesting registering the car abroad? Is that doable these days?

BvdV - The Dutch Engineer > Out, but with a W - has found the answer
07/23/2016 at 09:05

It used to be really easy years ago. There even was a Dutch-owned company located in Luxembourg, to whom you could “sell” your car and then “lease” it back, in some kind of tax evasion scheme, though they have been shut down now.

Now probably one of the best options is to start a German/Belgian company and continue to live in the Netherlands, claiming you drive a company car from your foreign company, though according to rules you need to pay the road tax in that case, making it less beneficial. A more effective option would be to really move to Germany/Belgium and keep a house in the Netherlands as a “second” home, and just spending more time in your second home than in your new country.

Though it is quite likely I’ll just end up moving to Germany in a few years time, after I finished my studies, since there tend to be more automotive jobs there.

samssun > BvdV - The Dutch Engineer
07/23/2016 at 09:06

90k in taxes added to a 36k car? You know you guys can hang your communist politicians any time you want right?