Why are American cars cheap?

American car prices are priced according to Americans’ living standards. Ordinary people can easily own a car, and the car quality is a good car. Americans’ living standards, the pricing of cars as the common standard of ordinary national life, are generally in the range of $ 20,000-50,000. Cars with more than $100,000 are high-consumption standards. And the cars we import, due to the tariff of up to 300%, plus the exchange rate difference between the US dollar and the renminbi, the US-made car imports are very high in our country.

 Why are American cars cheaper?

All along, due to differences in Chinese and foreign taxes, the same There will be a big difference in the prices of domestic and foreign models. When buying a car, Chinese people must pay VAT, consumption tax, and purchase tax. Excluding manufacturers’ costs and profit margins, we can see from the analysis of domestic taxation policies that the price of cars bought in China is much higher than that of foreign countries.

 Why is the price of cars in the United States very cheap?

The objective price is low, I found some Mercedes-Benz from the official website. The starting price of the model. Note that this is the manufacturer’s guide price. In the actual purchase, if it is the same configuration (generally the so-called version), the price given by the dealer will be cheaper than the manufacturer’s guide price. However, dealer is also going to make money. So they will hardly add various packages to increase the added value. In addition, consumers have to pay for consumption tax, licenses, etc.

 Why is the price of cars in the United States very cheap?

The so-called production costs, including fixed assets such as factories and machines, It also includes the raw materials, steel plates, tires, etc. that need to be purchased for the production of automobiles. These products are subject to VAT in the previous production process, so these production costs can be exempted from VAT in foreign countries. This is the consumption VAT. Typical characteristics, but the production-type value-added tax implemented in China cannot be exempted from the production cost of this part. Therefore, the direct result is that the production cost of Chinese auto manufacturers is higher than that of foreign manufacturers only in terms of value-added tax.

Foreign manufacturers.