New Cars

Mar 09, 2005 53 Replies

Which are been 1.50 since June 2002.

So ?

Approximately $1.5 : £1 is the "normal" exchange rate - and this is what it will eventually settle back down to (over perhaps a very lengthy period).

Yep - I'm not disputing that.

You're obviously not suggesting that Audi should raise all their USA prices by 30% to compensate for their broken currency, in order that they match the current UK prices, cos that would be silly - so what exactly is your stance ?

Prices always vary between different economies, and they always will ! There's nothing wrong with that. It's crazy to suggest the USA's ability-to-pay for a new AUDI should be exactly the same as ours.

I see from your reply that you didn't actually read my post :) Please do so.

How is it ? $26k plus the 17.5% VAT that we have to pay, gives an equivalent cost of $30k. So that's approximately £16.5K at today's exchange rate. At the *usual* exhange rate, it works out at around £21k - which isn't that much cheaper than they are here !

As the value of the dollar goes down, then their cars become cheaper. $1 today is worth a lot less than it was a few years ago ! This has nothing to do with either their economy OR the car maker - their cars are cheap TO US (not to them !), cos the dollar is worth nothing. It's that simple. If you actually LIVED in America, you'd find their cars aren't cheap. As a percentage-of-the-average-wage, $26k for a Nissan 350Z, isn't actually far off the percentage-of-the-average-wage that they cost here !

What you're saying here, is that their cars are cheap as imports to us. Whether they're cheap to buyers actually IN the USA, is a completely seperate issue ! The value of the dollar, affects the import price. It doesn't affect the cost to residents of the USA.

See what I'm saying ?

In simple terms : American cars are only a bit cheaper than English cars. As some variance in price is to be expected, then that's fine.

So you are saying "WE" are paying for the fact the $ is s*it against the £

And when you say cars arnt cheap? $ for $ they are tons better off, cost of fuel, Car tax, MOT ,

And dont say the yanks earn less then us because they dont in most skilled jobs, my eqiv in America earns more than I do here, and the same goes for Canada, and house prices are cheaper, so is food, so is cost of living, and I have been to America lots of times.

The only thing more expensive I have found is Bread, and thats it.

Oh and btw a recent poll on TV showed that 95% of brits would leave if they could.

I count myself among the 95%. Beginning to really loathe this country!

How so? The cars are made in the EU and the costs haven't fallen so Audi are getting signifigently less per vehicle sold in the USA than 2 years ago. That's madness.

That the pre-tax price of cars sold in the US - taking into account their purchasing power and exchange rates - is *significantly* lower than the pre-tax price of cars sold here.

Not that I have a problem with Audi or whoever making less margin over there than they do here, that's their perogative.

Just pointing out that we pay much more.

An Elise is cheaper in the US than it is here.

Actually mate I woulod suggest it could be both, but sadly not. Those who had a public school education will know the command "Assume the position", and know not to complain.

People who have worked for companies that subcontacted to IBM in the

80's will also understand.

UK list price includes tax.

US list price excludes tax and delivery charges.

US car is LHD, economy of scale.

Plus, we're in Britain and deserve to be ripped off. Market forces. Cars are alresdy relatively cheaper here than they were a decade ago (1989 Golf GTI Cabriolet - £13,995 - 2004 - Beetle Cabrio 1.6i, with more kit, £15,495 - compare to the cost of a house or average wages then).

If the Audi was $60K, it wouldn't sell. The Chrysler 300C only costs $36K and has more kit, a V8 etc.

Richard

[...]

The US Dollar is at least 50% overvalued, merkins should be paying double.

A

Your argument would only work if the cars were made in the country they are sold in. As the Audi's and Z's in question are single source the maker is either taking a hit on price in the USA or making a quick buck in the UK.

The people making them are paid in Euro and Yen. Some material may be bought on the world market in dollars but most will have been processed before it arrives in the factory. It costs the same to make a car in Germany to be sold in the UK as does to make one in Germany to be sold in USA. Likewise Japan. Looks like we are subsidising car makers to sell at low prices in the USA.

The fact is the USA has low prices all the time. It's even better now but they are seeing import prices rise. The UK has high prices because we don't have clue how to haggle and the dealer can always find a mug to pay without haggling. Big hint except for a few items (computers) the mark up in the UK is not 10% it's 100%. Furniture, carpets cars all 100% mark up, it has to be as by the time the bank loan, rates, rent, wages etc have been paid most business expect to make about 10% profit.

That is, frankly, a s**te solution to getting cheaper cars.

Exactly !

If they now raise the price in the USA by 30%, then how do you propose the Americans would actually be able to pay for said new AUDIs ? Their wages haven't risen by 30% !!!

Everyone seems to be forgetting, that a fall in currency value only makes things cheaper for *us*. They aren't 30% cheaper to all the folks who live in the USA !

Yes, duh, that's what happens when a currency loses value !

Why ?

- is not that much different to ours.

Yes, once you factor in the exchange rate. If a currency drops in value, then obviously it would be cheaper for us to import goods from that country. But those goods are no cheaper for the people who live there !

There's nothing they can do about it. If they raised prices to cover the currency drop, then their cars would be *very* expensive over there. They wouldn't be able to compete with the USA brands, and nobody there would be able to afford an AUDI.

Only a bit though.

Most things are a bit cheaper in the USA than they are here :)

They don't !

Their weak dollar only makes their goods cheaper *for us to import* !

That is the key phrase.

They cost almost the same number of $$ to the average American, that they did before the currency bombed.

Yes, that's exactly right.

Er, they can't. If the upped the prices, then they'd stop being competitive with all the other car makers (it would only work if ALL the car manufacturers got together and planned an increase - but that's a highly illegal thing for a cartel to do, and they'd be in big trouble if they tried !), and we would no longer be able to afford new cars ! Our wages wouldn't go up if the £ bombed !

Well yes. If the price of oil goes up, then obviously we pay more :) So does every other country :)

How ?

With what ?

Where do you propose their money should come from, to pay more for the goods ?

LMAO :)

Ronny, you need to learn some economics :)

Richard, you're wasting your time. Ronny is selectively ignoring all the reasons we're giving !

You've just answered your own question !

S***ty dollar = £7k.

Your original question was "WTF is going on???"

We've since explained what is going on - so now that you understand why the prices *APPEAR* to be different, but in fact aren't much different, then surely this thread has ended !

It's a seperate country !

It has it's own economy !

There is NO REASON AT ALL for their prices being even remotely comparable to ours !

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