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Global Forums > General > A $31,000 car in the US is $60,000 in France - WHY!?!
 
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A $31,000 car in the US is $60,000 in France - WHY!?!

Jeep has a new car - the Cherokee.  Looks nice.  I was thinking of buying one.  So I start poking around, and the EXACT SAME CAR is almost double if I buy it in France.  I know there are circumstances, but almost double?!  Why is that?


The car I am looking at is the Jeep Limited 4x4 which you can see at www.jeep.com and www.jeep.fr.


Is it because it in not made in the EU?  I'm just stunned at the difference.


 

The text you are quoting:

Jeep has a new car - the Cherokee.  Looks nice.  I was thinking of buying one.  So I start poking around, and the EXACT SAME CAR is almost double if I buy it in France.  I know there are circumstances, but almost double?!  Why is that?


The car I am looking at is the Jeep Limited 4x4 which you can see at www.jeep.com and www.jeep.fr.


Is it because it in not made in the EU?  I'm just stunned at the difference.


 


smoore4Apr 7, 2014 @ 18:19
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 1

All cars are much more expensive in Europe than in the US. It's because of different buying power, manufacturing, distribution and marketing costs, various taxes, mentality and so on. You could import a car from the US but you have to decide for yourself if it's worth the trouble. Welcome to Europe.

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All cars are much more expensive in Europe than in the US. It's because of different buying power, manufacturing, distribution and marketing costs, various taxes, mentality and so on. You could import a car from the US but you have to decide for yourself if it's worth the trouble. Welcome to Europe.


catalin, Apr 7, 2014 @ 19:35
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 2

I've often made the comparison and indeed, cars are way cheaper in the US.


Reasons?  I would say buying power, import duties, VAT and weak currency (USD).


If you can, you may want to consider buying it in the US and importing it yourself to France but do your DD carefully before as there are probably some modifications to be made to the car in order to pass inspection and some paperwork to be done.


Consider the VAT in your calculation but in some cases (moving into France) this can be voided.


Cheers,


P. (still dreaming about a '66 Mustang Fastback...)

The text you are quoting:

I've often made the comparison and indeed, cars are way cheaper in the US.


Reasons?  I would say buying power, import duties, VAT and weak currency (USD).


If you can, you may want to consider buying it in the US and importing it yourself to France but do your DD carefully before as there are probably some modifications to be made to the car in order to pass inspection and some paperwork to be done.


Consider the VAT in your calculation but in some cases (moving into France) this can be voided.


Cheers,


P. (still dreaming about a '66 Mustang Fastback...)


Pikachu, Apr 7, 2014 @ 19:33
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 3

All cars are much more expensive in Europe than in the US. It's because of different buying power, manufacturing, distribution and marketing costs, various taxes, mentality and so on. You could import a car from the US but you have to decide for yourself if it's worth the trouble. Welcome to Europe.


Apr 7, 14 19:35

Even worse in Switzerland...


Welcome to cow-milking country...

The text you are quoting:

Even worse in Switzerland...


Welcome to cow-milking country...


Pikachu, Apr 7, 2014 @ 19:42
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 4

In Switzerland, the same car is $67,000!   It is a mid-size SUV, a Jeep no less!  Wow. 

The text you are quoting:

In Switzerland, the same car is $67,000!   It is a mid-size SUV, a Jeep no less!  Wow. 


smoore4, Apr 7, 2014 @ 19:55
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 5

Just to add...a Volvo XC60 (starting price) is about $35000 in the US and 35000 EURO in France.  I can live with that.  With Jeep it is almost double.  Maybe has to do with being in the EU.  Guess I'll start looking at German cars! 

The text you are quoting:

Just to add...a Volvo XC60 (starting price) is about $35000 in the US and 35000 EURO in France.  I can live with that.  With Jeep it is almost double.  Maybe has to do with being in the EU.  Guess I'll start looking at German cars! 


smoore4, Apr 7, 2014 @ 20:12
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 6

some price differences are directly links to higher costs, mainly duties. 


other differences are explained simply by supply and demand: the swiss have money and are willing to pay more, so the car companies give the consumers what the consumers want.

The text you are quoting:

some price differences are directly links to higher costs, mainly duties. 


other differences are explained simply by supply and demand: the swiss have money and are willing to pay more, so the car companies give the consumers what the consumers want.


Mark Spencer, Apr 7, 2014 @ 23:24
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 7

Jan 1, 70 01:00

That's probably why our local supermarket car-park is full of numberplates with GE, VS, VD, FR and sometimes those from further afield.


We live in Evian. Bet the purchasers don't declare all the goodies when they cross the borderCool

The text you are quoting:

That's probably why our local supermarket car-park is full of numberplates with GE, VS, VD, FR and sometimes those from further afield.


We live in Evian. Bet the purchasers don't declare all the goodies when they cross the borderCool


sheila c, Apr 8, 2014 @ 10:01
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 8

That's probably why our local supermarket car-park is full of numberplates with GE, VS, VD, FR and sometimes those from further afield.

We live in Evian. Bet the purchasers don't declare all the goodies when they cross the borderCool


Apr 8, 14 10:01

From the 1st July the following will apply.


 


http://www.ezv.admin.ch/zollinfo_privat/04342/04343/05761/index.html?lang=en


 


 



The text you are quoting:

From the 1st July the following will apply.


 


http://www.ezv.admin.ch/zollinfo_privat/04342/04343/05761/index.html?lang=en


 


 


Charlie, Apr 8, 2014 @ 13:20
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 9

And this link is for cars..


 


http://www.ezv.admin.ch/zollinfo_privat/04392/04393/04394/index.html?lang=en


 


 

The text you are quoting:

And this link is for cars..


 


http://www.ezv.admin.ch/zollinfo_privat/04392/04393/04394/index.html?lang=en


 


 


Charlie, Apr 8, 2014 @ 13:33
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 10

My question would be why would you want to buy a Jeep Cherokee?  When I lived in the US I remember they were not that great qualitywise, and they are gas gusslers.  Considering how much more the cost of gas is here, I really don't know why anyone would want to get one of these.


Now I know Jeep is owned by Chrysler, which they have been known for producing a lot of garbage in the last several years... but now that Fiat owns Chrysler, I'm not sure if they have done any better.  


Of the 3 big American brands, looks like Ford is doing much better in terms of quality.  Forget about GM!

The text you are quoting:

My question would be why would you want to buy a Jeep Cherokee?  When I lived in the US I remember they were not that great qualitywise, and they are gas gusslers.  Considering how much more the cost of gas is here, I really don't know why anyone would want to get one of these.


Now I know Jeep is owned by Chrysler, which they have been known for producing a lot of garbage in the last several years... but now that Fiat owns Chrysler, I'm not sure if they have done any better.  


Of the 3 big American brands, looks like Ford is doing much better in terms of quality.  Forget about GM!


Jean-Jacques B, Apr 8, 2014 @ 13:58
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 11

If you are importing a car to France and are resident in either Pays de Gex or Haute Savoie you can benefit from the Free Zone (Zone Franche) status. They are the French red plates you see, and means reduction in duties etc. 


http://fr.wikipedia.org/wiki/Zone_franche_du_pays_de_Gex 

The text you are quoting:

If you are importing a car to France and are resident in either Pays de Gex or Haute Savoie you can benefit from the Free Zone (Zone Franche) status. They are the French red plates you see, and means reduction in duties etc. 


http://fr.wikipedia.org/wiki/Zone_franche_du_pays_de_Gex 


Kevin M, Apr 8, 2014 @ 16:22
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 12

These are really good tips.  Thanks for passing that along!


 


Steve

The text you are quoting:

These are really good tips.  Thanks for passing that along!


 


Steve


smoore4, Apr 8, 2014 @ 16:40
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 13

It may also be that you're looking at an exceedingly polluting car, which has a high CO2 tax This tax is there to discourage purchase of overly polluting cars.


I know very little about registering cars, but according to the following article, the tax can be up to CHF20'000. http://www.20min.ch/finance/news/story/20970888


According to the statistics, the car you're looking at has a CO2 emmission way above anything reasonable, so it most likely has a high tax. (http://www.car-emissions.com/cars/model/Chrysler+Jeep/Jeep+Cherokee/2011)


Why don't you look for another car, that pollutes less?

The text you are quoting:

It may also be that you're looking at an exceedingly polluting car, which has a high CO2 tax This tax is there to discourage purchase of overly polluting cars.


I know very little about registering cars, but according to the following article, the tax can be up to CHF20'000. http://www.20min.ch/finance/news/story/20970888


According to the statistics, the car you're looking at has a CO2 emmission way above anything reasonable, so it most likely has a high tax. (http://www.car-emissions.com/cars/model/Chrysler+Jeep/Jeep+Cherokee/2011)


Why don't you look for another car, that pollutes less?


tawb, Apr 8, 2014 @ 17:58
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 14

 


re:importing while resident in Zone Franche Pays de Gex


Should you be elligible for special reduced import duties because of your residence in Pays de Gex or border line Haute Savoie, you need
FIRST check with autoritaires if your house location qualifies-
NEXT make sure the car you wish to buy is made and assembled outside EU as IF this not be the case you cannot benefit.
Last , if your Jeep model is assembled by Chrysler with the new FIAT fuel saver engine  you will save a bundle on gaz/diesel consumption and forget not being able to take discounts and reduced rate from everywhere.

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re:importing while resident in Zone Franche Pays de Gex


Should you be elligible for special reduced import duties because of your residence in Pays de Gex or border line Haute Savoie, you need
FIRST check with autoritaires if your house location qualifies-
NEXT make sure the car you wish to buy is made and assembled outside EU as IF this not be the case you cannot benefit.
Last , if your Jeep model is assembled by Chrysler with the new FIAT fuel saver engine  you will save a bundle on gaz/diesel consumption and forget not being able to take discounts and reduced rate from everywhere.


Milord, Apr 8, 2014 @ 18:12
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 15

It may also be that you're looking at an exceedingly polluting car, which has a high CO2 tax This tax is there to discourage purchase of overly polluting cars.

I know very little about registering cars, but according to the following article, the tax can be up to CHF20'000. http://www.20min.ch/finance/news/story/20970888

According to the statistics, the car you're looking at has a CO2 emmission way above anything reasonable, so it most likely has a high tax. (http://www.car-emissions.com/cars/model/Chrysler+Jeep/Jeep+Cherokee/2011)

Why don't you look for another car, that pollutes less?


Apr 8, 14 17:58

My first choice would be a Hybrid.  And Lexus is coming out with a new one soon.  But the car I really like - a hybrid Volvo XC60 - is not available in France.  And I am worried about the different standards for recharge stations.  The technology exists but the standards are still hazy IMO.  For those reasons, we are still looking at fossil fuel options. 

The text you are quoting:

My first choice would be a Hybrid.  And Lexus is coming out with a new one soon.  But the car I really like - a hybrid Volvo XC60 - is not available in France.  And I am worried about the different standards for recharge stations.  The technology exists but the standards are still hazy IMO.  For those reasons, we are still looking at fossil fuel options. 


smoore4, Apr 8, 2014 @ 22:27
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 16

From what I remember years ago the Swiis gouvernment would give anyone who purchassed a Jeep (and Jeep only) 10,000 swiss francs upon purchasse as the vehicule would get immediately taken in case of war. 
It's a sort of precompensation, but I don't know if this rule is stil appied now a days?, might be worth checking it out.

The text you are quoting:

From what I remember years ago the Swiis gouvernment would give anyone who purchassed a Jeep (and Jeep only) 10,000 swiss francs upon purchasse as the vehicule would get immediately taken in case of war. 
It's a sort of precompensation, but I don't know if this rule is stil appied now a days?, might be worth checking it out.


Michel D, Apr 8, 2014 @ 23:10
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 17

The Camaro is even worse.  In the US, if you can work a deal that's a few % over invoice minus all the current rebates, a 2014 with no options can be had for about 22k USD.  It's a 50k CHF car here.

The text you are quoting:

The Camaro is even worse.  In the US, if you can work a deal that's a few % over invoice minus all the current rebates, a 2014 with no options can be had for about 22k USD.  It's a 50k CHF car here.


richardm, Apr 10, 2014 @ 15:06
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 18

1. In france? This site is a Swiss Site :)


2. Jeep, no body has Jeep in CH or FR, so its like supply and demand. so certainly costs are higher.


3. Polution control and factory installed equipment requirements are strickter/higher here.


4. Gas guzzeling / large cm3 engines are taxed higher.


5. Check the total price, what is the tax portions.


6. Ford is a much better 'USA auto' and also more commpetitive/standard pricing auto comparable to european cars.


7. French auto industry protection.


8. France auto protection :) , I almost never see Jeep here or in France.


9. Switzerland earn 200% on average than in USA for same Job, so its like housing market in Geneva, supply and demand. Limited demand , so limited supply of Jeep.  DISPOSABLE INCOME :P


10. Cant afford it, dont buy it, it your expectation and threashold.


11. Almost no one fixes Jeeps.


12. If your living in Switzerlandfor short term , a year or under, you can use your imported car for a year without changing the plates or registration but after official residence 1year, you must change plates. If you owned a car more than a year or so, in another country, import taxation of a car is much cheeper in Switzerland.


Good luck and So get the point? or a clu....


Its not Kansas here in CH (0r for you Frenchiez).


 


 


 

The text you are quoting:

1. In france? This site is a Swiss Site :)


2. Jeep, no body has Jeep in CH or FR, so its like supply and demand. so certainly costs are higher.


3. Polution control and factory installed equipment requirements are strickter/higher here.


4. Gas guzzeling / large cm3 engines are taxed higher.


5. Check the total price, what is the tax portions.


6. Ford is a much better 'USA auto' and also more commpetitive/standard pricing auto comparable to european cars.


7. French auto industry protection.


8. France auto protection :) , I almost never see Jeep here or in France.


9. Switzerland earn 200% on average than in USA for same Job, so its like housing market in Geneva, supply and demand. Limited demand , so limited supply of Jeep.  DISPOSABLE INCOME :P


10. Cant afford it, dont buy it, it your expectation and threashold.


11. Almost no one fixes Jeeps.


12. If your living in Switzerlandfor short term , a year or under, you can use your imported car for a year without changing the plates or registration but after official residence 1year, you must change plates. If you owned a car more than a year or so, in another country, import taxation of a car is much cheeper in Switzerland.


Good luck and So get the point? or a clu....


Its not Kansas here in CH (0r for you Frenchiez).


 


 


 


Dave G, Apr 10, 2014 @ 16:39
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 19

It is true that a new car in France / Germany is much more cheaper than the same car in Switzerland.  But when it comes to buying parts, such as wheels for example, sometimes it can be the opposite.  Speaking of parts, where would you get parts for your Jeep when it breaks down?  Because it will break down at some point. 


Well, Switzerland does look like Kansas in a way, except for the beautiful scenery, good looking cows, and of course, Swiss people. :)

The text you are quoting:

It is true that a new car in France / Germany is much more cheaper than the same car in Switzerland.  But when it comes to buying parts, such as wheels for example, sometimes it can be the opposite.  Speaking of parts, where would you get parts for your Jeep when it breaks down?  Because it will break down at some point. 


Well, Switzerland does look like Kansas in a way, except for the beautiful scenery, good looking cows, and of course, Swiss people. :)


Jean-Jacques B, Apr 10, 2014 @ 17:22
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Re: A $31,000 car in the US is $60,000 in France - WHY!?!
Post 20

Speaking of parts, where would you get parts for your Jeep when it breaks down?


Jeep has a Swiss dealer network.  They officially "exist" here.  One need not resort to buying from the grey market to own a Jeep in this country.

The text you are quoting:

Speaking of parts, where would you get parts for your Jeep when it breaks down?


Jeep has a Swiss dealer network.  They officially "exist" here.  One need not resort to buying from the grey market to own a Jeep in this country.


richardm, Apr 11, 2014 @ 10:33
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