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Re: Does German Cars cost more in Germany?
Sorry for the WOB, but I thought this was real interesting, and diffinally a
eye opener for me.(Not to mention, I lost 10 bucks..hehehe)
In a message dated 5/24/99 11:54:45 AM Pacific Daylight Time,
> >One word: TAXES.
> Sometimes -- and usually -- it's more than taxes. Just as average Joe/Jane
> would not pay $70,000 for Audi (A8) or $30,000 or Subaru (SVX), the car
> models have to be price competitive to survive in the U.S. In the U.S.,
> it's not the real value of the car that sets the price; rather, it's the
> image associated with the car brand. Would I pay $100,000 for Mercedes?
> Heck, no -- it doesn't worth that much. For majority of 'Mericans,
> however, the image alone justifies that silly high cost.
> About two years ago, I went through Asia. Did you notice the prices in
> those countries? The A8 is priced (retail) at around US$160,000!! That's
> more than twice the price of my house I lived few years ago! A Mercedes S
> with small V6 goes into the $200,000 range.
> But one thing is for sure -- we in the U.S. are enjoying the cheapest
> priced cars and gasoline in the world. When I mean cars, I mean domestics
> and imports. There was some rumor back that every A8 sold in the U.S. will
> *COST* Audi -- and Audi is putting up with it because A8 is the "image
> car" for Audi. You cannot get A8 for $75,000 anywhere in the world except
> in the U.S. As most foreigners say, "That's a steal!"
> Ever notice we don't get interesting cars that 98% of U.S. population
> never heard of? The problem is to sell those cars, the cars must be
> recognized and have "image values" to them or else they won't sell at
> their proper values. Many magazines still claims A8 to be over-priced --
> when aluminium construction of A8 is valued more than equivalent MB S or
> BMW 7 models (and usually sold as so).
> It's very evident from how we compare cars -- we don't compare the cars
> due to their own merit like rest of the world, but we compare them with
> "similar prices." Rest of the world would compare Audi A4, MB C, and BMW 3
> together. Would that happen in the U.S.? Nay. MB C is priced beyond BMW 3,
> which in turn is priced beyond Audi A4. As far as most Americans are
> concerned, A4 belongs to the same league as up-brand Honda (Accura) and
> Toyota (Lexus) and not the traditional foes.
> (In the rest of the world, the Audi A4/MB C/BMW 3 are all priced similar
> to each other. Yet, A4 usually out-sells 'em, and with better residual
> values, etc.)
> In fact, that's the very reason why A4 is winning such praises. This is a
> two-edged sword... If you compare a MB C to average Hondas and Toyotas, of
> course MB will win (assume we don't look at the price). When most of rest
> of world find A4 is above C or 3, of course it'll be better than the
> average Joe/Jane car. But if Amercians do make A4 go against C or 3, the
> A4 will fail -- not because it's not technically incompetent, but because
> C and 3 had more "image" associated with them than the A4.
> (And that's why foreigners see Amercans as "weird" and "stupid.")