Parking assistance settings (Camera Image in R)
06-23-2023, 09:38 PM
#26
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PFL205.064 with M276.823 (Oil pump solenoid defeated)
Nah, taxes and duty alone do not fully account for the astronomical increase with MB's China prices. It is only a small part of the equation. Price discrimination is the true culprit here. MB knows they can, and indeed they do, get away with pricing them higher.
For the record, I did pay taxes on my purchase : ) it was 66% combined, for my 3.0 litre S450. But even after these taxes, it was still a bargain compared with buying from domestic dealership. I got options that Chinese W223 owners simply do not have access to, and saved a few dozen grand $ too.
For the record, I did pay taxes on my purchase : ) it was 66% combined, for my 3.0 litre S450. But even after these taxes, it was still a bargain compared with buying from domestic dealership. I got options that Chinese W223 owners simply do not have access to, and saved a few dozen grand $ too.
I also heard you could "forget about" buying an MB in Singapore, taxes are like 100% or even over of the car's value?
06-23-2023, 09:46 PM
#27
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Very true. The base specced cars in Germany have lower options than cars elsewhere. This does not mean cars in Germany would typically have less options, I'd say they are typically well equipped but the buyer has more freedom to choose and can have a quite poorly specced car if he/she so wishes.
06-23-2023, 09:48 PM
#28
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PFL205.064 with M276.823 (Oil pump solenoid defeated)
It's different. In Germany you are allowed to spec your W223 almost any way you want. There's hardly any option-bundling - you can freely add functions you need, and leave out the ones you don't. In China, almost all of the 'nicer' options are locked behind the highest trim level, which is way over-priced. So consumers who buy through official MB dealerships are forced into accepting inferior, barebone cars that lack the options they want, unless they shell up for the absolute top trim, which is a stupid thing to do, given how unreasonably expensive it is. This is not freedom, this is anti-consumerism.
And yes, I know MBUSA is infamous for their option-bundling as well. But things are even worse with MB China. Much worse.
And yes, I know MBUSA is infamous for their option-bundling as well. But things are even worse with MB China. Much worse.
06-23-2023, 10:07 PM
#29
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I don’t know if MBUSA actually did the math correctly on this one. Take the four-zone climate control. If it were optioned separately for say $1k versus hiding it in the +$12k Executive Line, I bet they would make a lot more money on the a la carte climate control versus the few people willing to move up just for that option. This can be repeated for a few other options as well.
It's different. In Germany you are allowed to spec your W223 almost any way you want. There's hardly any option-bundling - you can freely add functions you need, and leave out the ones you don't. In China, almost all of the 'nicer' options are locked behind the highest trim level, which is way over-priced. So consumers who buy through official MB dealerships are forced into accepting inferior, barebone cars that lack the options they want, unless they shell up for the absolute top trim, which is a stupid thing to do, given how unreasonably expensive it is. This is not freedom, this is anti-consumerism.
And yes, I know MBUSA is infamous for their option-bundling as well. But things are even worse with MB China. Much worse.
And yes, I know MBUSA is infamous for their option-bundling as well. But things are even worse with MB China. Much worse.
06-24-2023, 12:14 AM
#30
For vehicles from 2.5 to 3.0 litre displacement:
- 25% customs duty
- 12% consumption tax
- 17% VAT
- plus a few %s of misc charges = total of 66% vehicle value
For 3.1 to 4.0, the combined tax is even higher, at a whopping 95%.
And for vehicles over 4.1 litre: 143%.
But even then, those taxes alone still fails to account for why MB is charging double or triple prices in China.
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06-24-2023, 04:31 AM
#31
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PFL205.064 with M276.823 (Oil pump solenoid defeated)
For vehicles from 2.5 to 3.0 litre displacement:
- 25% customs duty
- 12% consumption tax
- 17% VAT
- plus a few %s of misc charges = total of 66% vehicle value
For 3.1 to 4.0, the combined tax is even higher, at a whopping 95%.
And for vehicles over 4.1 litre: 143%.
But even then, those taxes alone still fails to account for why MB is charging double or triple prices in China.
- 25% customs duty
- 12% consumption tax
- 17% VAT
- plus a few %s of misc charges = total of 66% vehicle value
For 3.1 to 4.0, the combined tax is even higher, at a whopping 95%.
And for vehicles over 4.1 litre: 143%.
But even then, those taxes alone still fails to account for why MB is charging double or triple prices in China.
06-24-2023, 05:11 AM
#32
This is why Toyota stopped selling its Land Cruiser in China. That car had too powerful an engine, and excessive displacement taxes made it an impossibly bad deal.
06-24-2023, 05:49 AM
#33
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PFL205.064 with M276.823 (Oil pump solenoid defeated)
That's as high as it goes. Although, in the recent years, they've introduced a new 'luxury tax' of 10%, for cars exceeding $200,000 in value. And cars with 6.2L are definitely going to be more than that. So really you are looking at 153%.
This is why Toyota stopped selling its Land Cruiser in China. That car had too powerful an engine, and excessive displacement taxes made it an impossibly bad deal.
This is why Toyota stopped selling its Land Cruiser in China. That car had too powerful an engine, and excessive displacement taxes made it an impossibly bad deal.
06-24-2023, 05:53 AM
#34
And to better illustrate my point of car maker price discrimination in China:
The phantom starts at around $460,000 in the US. It is $1,360,000 in China. That is quite literally 300%. Now we know the taxes account for about 260%. So what happened to the remaining 40%? It can't be that expensive to ship a car from Derby to Shanghai. So obvious answer is - RR China kept that remaining balance.
This is why importers are a thing in China. Their entire business model is based on the price discrimination by official dealers - the dealers have a whopping 40% margin on those higher-end cars, so individual importers can afford to undercut them, by quite a significant amount, while still remaining highly profitable. If dealers were more honest / aggresive with their China pricing, those importers would not exist.
The phantom starts at around $460,000 in the US. It is $1,360,000 in China. That is quite literally 300%. Now we know the taxes account for about 260%. So what happened to the remaining 40%? It can't be that expensive to ship a car from Derby to Shanghai. So obvious answer is - RR China kept that remaining balance.
This is why importers are a thing in China. Their entire business model is based on the price discrimination by official dealers - the dealers have a whopping 40% margin on those higher-end cars, so individual importers can afford to undercut them, by quite a significant amount, while still remaining highly profitable. If dealers were more honest / aggresive with their China pricing, those importers would not exist.
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