Are we being charged too much for new cars? - Trilogy

A number of years back Quentin Wilson was one of those campaigning about UK car prices compared with Europe. Just hear a neighbour's grandson recently bought an Audi A3 for £10,000 less than he would have done here. To my mind new car prices do seem to be getting too much. So, do others think we are being ripped off/charged too much?

Are we being charged too much for new cars? - groaver

I've said it often recently.

I think that people are being blinded by prices as many now just look at the monthly payment on their PCP contract.

If diesels become pariahs due to EU legislating against them watch the monthly payments rise on new deals as retained values slip significantly.

Are we being charged too much for new cars? - madf

If you compare specifcations and models, it might be true we are being overecharged.

BUT a vague sttement means nothing and is not worth discussing. Let's have facts rather than assertions...

Are we being charged too much for new cars? - Bianconeri

A base A3 retails at EUR 22,200 in Germany and EUR 23,365 in France. In the UK we pay GBP 18,575.

Those are the bold numbers but as other posters have said it's impossible to say without knowing what specification was involved, how it was paid for (or not paid for), etc... I'd be surprised at a £10k differential on any A3 model but maybe some creative "man maths" is at play.

The UK's biggest problem is that cars are seldom advertised as costing £x anymore, every advert seems to deal in "£x per month" terms so most folks don't own their cars (or have any equity in them at all) and don't have a clue what they are really costing. I bought two new cars in 2013 and the fact that I was BUYING the cars with good old-fashioned CASH seemed beyond most of the shiny-suited salesman

Are we being charged too much for new cars? - RT

IMO the problem is that the majority of new car buyers, the company car drivers, don't pay the list price although they do get taxed on list price. Leasing companies don't pay list, nor do private buyers with good negotiating skills leaving those least equipped to pay full price.

To compare prices internationally, you need to adjust for the inevitable specification differences and only compare using pre-tax price as VAT and VED add-ons vary in different countries.

It's long been the case that dealers make their money from the finance and servicing, not from selling the car itself.

Are we being charged too much for new cars? - Andrew-T

To compare prices internationally, you need to adjust for the inevitable specification differences and only compare using pre-tax price as VAT and VED add-ons vary in different countries.

And you have to allow for the typical income in each country. They don't necessarily earn as much (or as little) as we do.

Do many people still go to Germany to collect their Mercs and Beemers from the factory?

Are we being charged too much for new cars? - RT

To compare prices internationally, you need to adjust for the inevitable specification differences and only compare using pre-tax price as VAT and VED add-ons vary in different countries.

And you have to allow for the typical income in each country. They don't necessarily earn as much (or as little) as we do.

Do many people still go to Germany to collect their Mercs and Beemers from the factory?

Local incomes shouldn't affect prices, it will obviously affect the sort of cars local people buy though.

Are we being charged too much for new cars? - Engineer Andy

A base A3 retails at EUR 22,200 in Germany and EUR 23,365 in France. In the UK we pay GBP 18,575.

Those are the bold numbers but as other posters have said it's impossible to say without knowing what specification was involved, how it was paid for (or not paid for), etc... I'd be surprised at a £10k differential on any A3 model but maybe some creative "man maths" is at play.

The UK's biggest problem is that cars are seldom advertised as costing £x anymore, every advert seems to deal in "£x per month" terms so most folks don't own their cars (or have any equity in them at all) and don't have a clue what they are really costing. I bought two new cars in 2013 and the fact that I was BUYING the cars with good old-fashioned CASH seemed beyond most of the shiny-suited salesman

The prices sound about right, given the exchange rate. Not sure if all Audis are built in Germany, but if so, that might also reduce the price locally due to lower costs to get the to dealers. I'm sure also that differences in sales and environmental taxes can make a difference as well.

If the prices were that much different, the brokers would be doing a roaring trade like they were in the mid 2000s. I would say, though, that car prices in the US & Canada (for approximately equivalent models) appear still to be considerably cheaper than in Europe, not just for US cars.

You'd also think that given the recent experience with people (as well as governments) borrowing beyond their means for (often) high-priced items such as cars, which often are bought as fashion statements or to show off, rather than mostly for practical use.

I'm still amazed at how many people on lower incomes or who have endured periods of unemployment [like myself] pay out either huge sums or take out loans, PCPs etc for high performance/expensive cars and the ongoing costs (insurance, maintenance) that comes with them. Its almost as though either they've forgotten about the past 7 years or they just can't 'stands it no-more' and have to splash the cash. Oh well.

Are we being charged too much for new cars? - P3t3r

A base A3 retails at EUR 22,200 in Germany and EUR 23,365 in France. In the UK we pay GBP 18,575.

Those are the bold numbers but as other posters have said it's impossible to say without knowing what specification was involved, how it was paid for (or not paid for), etc... I'd be surprised at a £10k differential on any A3 model but maybe some creative "man maths" is at play.

It does sound like the price difference is a bit big, and the UK dealers won't be making £10k on an A3, even at full price. I also wonder whether VAT was taken into consideration?

I've purchased two new cars and had 30% off both of them. The list price was too high, but they weren't too bad at the prices I paid.

Are we being charged too much for new cars? - Bromptonaut

Last new car I bought was in September 2013. A Citroen Berlingo Hdi 1.6/115 in XTR trim for £13800. Seemed a bargain compared with list and a lot of car for the money. 16 months and 24k miles later we're still delighted with it.

No idea if it would have been cheaper in France. Historically though even if they bore same badges specs elsewhere were not same as UK. For example the 'colour keyed' bumpers and rubbing trips almost universal on UK versions of the previous Berlingo were almost unknown in France.

Oddly thoiugh, the XTR had plain black bumber/rubb strips while the XT spec below has colour keyed. The dealer was apologeitc......

Are we being charged too much for new cars? - xtrailman

We are paying too much because VAT has stayed at 20%, when it was 17.5% previously, ignoring the 15% during drops in sales.

Are we being charged too much for new cars? - RT

We are paying too much because VAT has stayed at 20%, when it was 17.5% previously, ignoring the 15% during drops in sales.

The only major EU country with a lower VAT rate is Germany, at 19% - so not very significant.

For completeness, Cyprus is 19%, Malta is 18% and Luxembourg 15% - the others are at, or above the UK rate, up to 27% in Hungary.

Are we being charged too much for new cars? - daveyK_UK

USA and Canada is where you find identical or near identical cars to those in the UK but at considerably cheaper prices.

Anyone who pays list price for a car is paying to much.

Never have, never will.

Are we being charged too much for new cars? - RT

North America has very different expectations of equipment levels so "near identical" they certainly aren't.

When Rover managed to sell the 800 series in North America, they built the base UK trim with LHD and put Sterling top of the range badges on.

From recent experience of Subaru Outback and Hyundai Santa Fe, both of which have US-built versions available, the equipment specification in mucg higher on the versions we get here.

But I do agree about never paying list price for a car.

Are we being charged too much for new cars? - colinh

The EU used to prepare an annual report giving a comparison of prices for the same spec. of car across all the member countries. However, since 2011 this has been discontinued with the following comment:

"When the report was launched, there were major car price differences among Member States, and it was much more difficult for consumers to compare prices across borders. Since then, the situation has improved greatly, in part due to enforcement action by the Commission, and also thanks to the increased availability of price information on the internet. This means there is no longer a need for the Commission to duplicate this information in the Car Price Report."

Anybody interested can see the archive of reports from 1993 to 2011 here:

ec.europa.eu/competition/sectors/motor_vehicles/pr...l

Are we being charged too much for new cars? - colinh

P.S. Just got a quote in Spain for a Toyota Auris hybrid - €20300 (£15860). Best quote on this website is £16267 for comparable spec. Given fluctuations in £/€ rate, that's fairly close