Great Britain Price Ripoff.

[Einstein]

How come (for example) the LS460 L costs £71,510 over here, yet the exact same car in the States is only £37,059 (converted from $72,000)

Links below... all prices are recomended retail prices, but dealers haggle more over there as well, so expect a £1500 reduction

http://autos.yahoo.com/lexus_ls_460/

http://www.parkers.co.uk/cars/new-prices/S...aspx?model=1537

Who is getting the other £34,451 ??????? because it wouldn't cost anywhere near that to have it made in RHD and shipped over..

Like it's less than half price !!!!!!! someone is seriously taking the you know what.

Rant over..

John

[WylieCoyote]

Someone is clearly taking the you know what, but they're taking the you know what from their Cheshire Mansion with swimming pool and Marble bathroom. It's not fair! I want to be that person!

[Vyker]

I think i can answer that, shut me up if you dont agree.

But its all to do with economies, in this country, £26k on car gets you BMW 3series, because that is what we are happy to pay to be able to drive that brand of car, its in line with what we get paid in our annual salaries.

To sell a LS460 for the same price would mean that the premium brand of the LS would be in the same line as that of a top end Mondeo, we get paid more here, and so for premium products, we need to pay more, we want to pay more, to say "i spent £57k on a car" is almost, at least it is these days, a cool thing to say, it shows you've made it, and thats what these people who can afford these cars, like to say, they like to be able to spend that money.

So if the LS was the price of that in the US, it wont be a premium product and so wont attract those who want to spend that kind of money.

I think this can probably be explained alot better using more business economics terminology, but that gets boring :P

[Einstein]

It is probably economies, but not for the reasons you say...

The average wage is probably higher in the states than here, and as you mention BMW, I just checked on those as well..

335i.... US cost £19,829

335i.... UK cost £31,550

A loaf of bread costs about £1.50 average over there, A tin of Heinz beans about a quid.. so food costs about the same, if a little more...

house prices are much less in the states... etc etc etc etc etc...

About time we rebelled :baaa: :baaa:

John

[DJ Wozza]

I think i can answer that, shut me up if you dont agree.

But its all to do with economies, in this country, £26k on car gets you BMW 3series, because that is what we are happy to pay to be able to drive that brand of car, its in line with what we get paid in our annual salaries.

To sell a LS460 for the same price would mean that the premium brand of the LS would be in the same line as that of a top end Mondeo, we get paid more here, and so for premium products, we need to pay more, we want to pay more, to say "i spent £57k on a car" is almost, at least it is these days, a cool thing to say, it shows you've made it, and thats what these people who can afford these cars, like to say, they like to be able to spend that money.

So if the LS was the price of that in the US, it wont be a premium product and so wont attract those who want to spend that kind of money.

I think this can probably be explained alot better using more business economics terminology, but that gets boring :P

No Vyker sorry mate I have to disagree.

It's just a bloddy rip off anyway you put it

There were Fuel Blockades at 75-80p/litre, and yet now at 106.9/litre nothing.

The Government simply outlawed them.

You can't even organise a peaceful protest outside the Houses of Parliament these days.

I just hate the lack of accountability of people in power, and the fact that

the Bulldog/Dunkirk spirit has been trampled out of us by PC morons everywhere.

(rant over)

[WylieCoyote]

My two cents worth, I think in the UK we're all just suckers and are prepared to pay it. Maybe our American friends can teach us a lot.

[passman53]

It's called market forces. Years ago the then chairman of Ford uk explained that the Granada was priced at the level the market was prepared to pay. if it was cheaper than the similar model from say Vauxhall, then the public perceived it to be a poorer car. In other words generally folks assume that dearer equals better.

We must be mad to put up with it. If we refused to buy then they either would have to reduce the price or go out of business. Other problem is the number of cars sold to fleets at a high ( up to 35%) discount. The only people paying the full price is the private buyer.

Around my area Vauxhall dealers are offering Vectras at 10k when the list price is almost 15k At they have been dealer registered and done no miles they are "second hand", but if this is what they are worth at one month old how can they be worth the full asking price in the first place?

Moan over.

[Rob's Lexx]

i agree, its a rip off in this country. but with my folks having lived in the states for 6 years now, you get used to it. one thing to bear in mind, in terms of joe public in the US, they see $1 as we see £1

[Bobski]

Just wondering if the US prices also include local and state taxes.

A friend over there mentioned these are added to the base price, so you might feel a little better at the comparison.

BTW.....why do you think US companies call the UK Treasure Island!

[Northern Boys Luv Gravy]

I'm not quite sure where you get your prices from but according to the US site the LS460 has a base price of $62,000. Add in the navigation, Mark Levinson,comfort package (basically UK spec) and delivery and the total is $72,000 before local taxes and dealer add ons. I've had a look on Lexus owners' sites in the US and that $72,000 seems about the norm before any haggling.

The pound is historically high against the dollar so it is making everything appear cheaper at the moment. If you use a more reasonable exchange rate of $1.75 to the £ then the price of the car is £41,140 + VAT = £48,342. Still cheaper but not the huge difference that we first thought. Margins are lower in the US due to competition and economies of scale.

[Einstein]

I've updated the prices and links on the first post... and done the same car with the same spec... sat nav, levinson etc.. and it's still about half the cost over there..

all prices are based on recommended dealer prices.. and current exchange rate... but on the US link, the target prices are even lower, with discounts of over £1500 common.

You are right about adding Customs Duty and VAT to the imported price... presuming you are bringing it to the UK.. but I was just discussing the difference in prices.

John

[shake]

its seems like a ***** take but it all works out.

if you work on oxford street you'll get paid £8 per hour'ish depending on store... convert that to $ its $15.45, however they dont actually get paid near that much. probably $6 to $7 depending on state minimum.

also lexus have a production line in the states which lowers cost.

edit: i cant say p!ss?

[Tango]

its seems like a ***** take but it all works out.

if you work on oxford street you'll get paid £8 per hour'ish depending on store... convert that to $ its $15.45, however they dont actually get paid near that much. probably $6 to $7 depending on state minimum.

also lexus have a production line in the states which lowers cost.

edit: i cant say p!ss?

Thought it was in Canada???

[Lex Bhoy]

It's called market forces. Years ago the then chairman of Ford uk explained that the Granada was priced at the level the market was prepared to pay. if it was cheaper than the similar model from say Vauxhall, then the public perceived it to be a poorer car. In other words generally folks assume that dearer equals better.

We must be mad to put up with it. If we refused to buy then they either would have to reduce the price or go out of business. Other problem is the number of cars sold to fleets at a high ( up to 35%) discount. The only people paying the full price is the private buyer.

Around my area Vauxhall dealers are offering Vectras at 10k when the list price is almost 15k At they have been dealer registered and done no miles they are "second hand", but if this is what they are worth at one month old how can they be worth the full asking price in the first place?

Moan over.

I have Fleet prices for Vauxhall and some of the discounts are scary.... Can get 20% of VXR range or top of the range Vectra for under £10k... If you think those are good discounts you should see what the discounts on accesories!!!