mickhoog

Hi
In Australia, luxury cars are subject to a Luxury Car Tax (LCT) as well as other taxes such as Goods and Services Tax (GST) and also Stamp Duty.
How it works here is that you have:

• The List Price of the Car
• You add in the GST, which is 10% of the List Price
• Then you have the LCT which is a sophisticated calculation dependent on whether the car is fuel efficient (<7L/100km) on an SLK this could be as much as $20k
• The LCT is worked out on the List Price, GST and the Dealer Delivery Charge
• Then you have the Stamp Duty which is 5.2% of the Dutiable Value which is the List Price, GST, Dealer Delivery and LCT
• So we have a tax on a tax on a tax

In effect an E400 which has a list price of $122,415 is driveaway at (which means on the road) $151,427 and that's before you have added any packages to the car that you might want for personalisation.

In your markets do you have all of these taxes? And when you see a price on the MB website do you have to work out additional costs?

ua549

In Florida the only taxes added are a state sales tax of 6% and an a local tax if any. Where I live the local tax is 1% with a maximum of $50. When I negotiate a purchase price I always specify "out the door" pricing which includes a discount, all extras such a dealer fees/prep charges, transportation and taxes.

KingScrubs

mickhoog

Correct, we do the same here, always negotiate the drive away deal. It is basically still a calculation of the above.

mickhoog

Thank you for your reply. Out of interest is the freight and cargo a flat fee, and is the admin fee a calc or flat fee?
For our LCT here there is a threshold of ~$75k where the vehicle attracts the LCT, and the threshold is different if it is deemed fuel efficient or not fuel efficient.

petee1997

You forgot the 6.2% import duty on all non NAFTA cars. That is a hidden tax built into the total price of the car. This will disappear gradually with free trade with the EU.

mickhoog

KingScrubs

I feel like it varies from dealership to dealership for the freight and cargo fee since they bundle it with the pre delivery inspection fee. The first dealership we visited quoted $1995, the 2nd one quoted $3025. I think the fee from Mercedes Benz Canada for the freight and cargo is a flat fee but the dealership can charge whatever they feel they can charge for the pre delivery inspection. The admin fee is also dealer dependent and from what I remember the first dealership wanted $800 for it while the 2nd one wanted $300. It just covers paperwork and programming of the key (supposedly). When we were buying the X5, BMW also charged these fees but the dealership waived it for us. We've had no luck getting it waived on the E450 and we weren't even able to get them to give a discount on the car as supposedly custom order cars aren't discounted in Canada according to the 2 dealerships I went to.

I completely forgot about that import duty. I think on our X5 we didn't have it hidden since the X5 was built in the States but the E450 will. I'm honestly not complaining about the import duty though as I think Canada is still one of the cheaper countries to buy luxury vehicles from. (Especially in Alberta). My dealership told me they stopped accepting cash payments due to this because some people decide to buy the car in Canada since it is one of the cheaper places to buy and they'll illegally export it to other countries.

tonecas

Portugal, Europe:
a) when buying:
- a vehicle specific tax (ISV) that is calculated based on the engine displacement and CO2 emissions (for high ticket, high performance cars this can represent 20% over the base price)
- the general value added tax over consumption (IVA) that is set at 23% and it is applied over the car base price + ISV (tax over tax)
- some minor costs for administrative and legalization issues (up to 1% of the final sales price)
typically, the taxes impact over the final sales price ranges from 25 to 50%
b) when using/keeping the car registered in your name:
- a annual usage tax (IUC) that is calculate based on the engine displacement, CO2 emissions, age and fuel type.
typically, this means not more than 0,5% of the sales price. usually it is less.

just for general reference:
http://www.acea.be/uploads/news_docu...GUIDE_2016.pdf

mickhoog

Thank you. Just a general guide how much would a E400 saloon be drive away , on the road? Your system seems as complicated as ours lol

tonecas

yeah, government needs a lot of cash to save banks

there is current no price for the E 400 sedan but the coupe goes for €84,494.10 or about $97k USD.
base price: 54.885,25€
ISV: 13.809,14€
IVA: 15.799,71€

plus about $1k to be road legal

Haag

In The Netherlands the drive-away price for a E 200 at the moment is as follows:

List price standard model - € 38.300
VAT 21% - € 8.043
BPM (special tax on motorvehicles) - € 10.532
Dealer delivery costs and registration - € 1.305
=> Total costs: € 58.180

But if you go wild on the options (like I did recently) the gross price will easily become € 90.000 for an E 200. Fortunately the discounts from the importer and dealer amount to appr. € 17.500 :-)

mister__p

In HK, the first HK$150,000 is taxed at 40%, the next HK$150,000 is taxed at 75%, the next HK$200,000 is taxed at 100% and on taxable value over HK$500,000, the rate is 115%.

That's one reason why you will come across few folks out here complaining about 4 cylinder engines. V6 and V8 are really for those with lots and lots of money. A loaded E53 will set you back well over 250k USD.

tonecas

wow! and I thought my country was bad.
the issue here is that taxes are high, one of the highest in Europe, usually only beaten by Nordic countries (Sweden, Norway, etc) but tax money goes to a sink hole... very few money is arriving to infrastructures and social welfare system where it was supposed to go. worst, the average salary here is 800€/month before taxes that makes this a "fake" first world country...

how is the purchasing power in HK?

US receives very attention from car makers since it represents an important market where everyone needs to be present. that can explain why the same car in the US costs the same in EU without taxes and not having any currency exchange effect of shipping effect. Europe and other countries clients may be paying for this benefice. Also, end-user sales represent very high margins for MB and other brands. If one buys through a company, to be a fleet car, the buying discount doubles automatically and can even go to 30%. so there is a lot of money that car makers make from individual sales.

another market that seems to get good prices on cars is UK. for what I've seen, an E63 S well loaded there costs about £90k or $116k USD already with VAT. kind of odd since the manufacturing process has to be changed since the driving seat is on the right, so one would think that cars would be price higher.

78degrees

Svalbard, Norway, Europe:
Svalbard has it's own tax system, basically we have 16,2% income tax and no other taxes except from approx 5000 NOK in a annual fee for each car.
Cars are tax free the same way as everything else.

Norwegian mainland:
Scrappage fee+ 2 400,00 (fixed amount for each car)
Weight tax + 161 793,85
CO2 emissions tax + 312 098,30
NOx emissions tax + 980,02
Total amount in car taxes= 477 272,00
Original cost for the car+ 1 100 000,00
VAT+ 275 000,00
Price in total VAT and taxes included= 1 852 272,00

There is also a tax for the cooling medium in the air conditioning on approx 715,- NOK for each car.

There is a daily roadtax to pay, the amount is 7,85 NOK per day that is collected through the insurance.

8,33 NOK = 1 USD

tonecas

That's a very interesting system. Got to look it up in a map to see why it looks like an offshore You are really in a remote place :o . Seems beautiful in any case and a good place to be if you want to be farther away from all the modern live fuzz.

Mainland system at least one knows what is paying for in detail and there rationality in each tax. Wish that we could have some of that here ..

Final price is steep but you still have a good welfare system right?

78degrees

Yeah, the welfare system in Norway is great. We also are required by law to have 4 weeks holiday every year (most people has 5 weeks)
The health care is for free and having a kid in kindergarden costs 2750 NOK or something. 12 years of free school for everyone.

The example above is for a 2018 E63S, the 2019 is more expensive due to new measuring methods for emissions.

parkwood

So many different costs across all the countries.

Thanks tonecas for the eu doc. I was most interested to see the variable vat levels....am a brit living in france coping with the brexit fallout and just this one document destroys 1 of the main leave arguments.......

but enough I need to get away from that subject. I just wanted to say france is moving it's registration tax system every year to force users to lower co2 levels. This year it is either 140 euro bonus malus for 126g co2 and 127g means paying 173 euro....with wltp coming in registration is getting very expensive. The payment is made direct to government too with a separate check given over at the time of collection then the registration no is allocated and you get the provisional reg document.

there is also a keys in hand charge of about 450euros known in the UK as a delivery charge. But to answer the original posters query the brochure price incls the vat so the only extra is the registration cost details of which can be obtained on line and the cles en main charge which is hidden in small print in the brochure.

Also agree the us seems to get these cars very cheaply and the lack of apparent pollution control means they can have cars we can only dream of. Any engine over the 200 petrol or 220d is for the very very wealthy e63 will bearer than hens teeth here.