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More to cost than purchase price Posted by Ari [Email]  (#2847) [Profile/Gallery]
(more from Ari) on Thu, 2 Dec 2004 08:17:28
In Reply to: Dollar down? (+), Vlad, Thu, 2 Dec 2004 06:32:36 Members do not see ads below this line. - Help Keep This Site Online - Signup |
In Europe, gasoline costs around $5 a gallon. Most countries tax the car based on engine size. In many places, the roads are much narrower, and parking is amazingly difficult.
This is and entirely different market than in the US, where fuel is relatively cheap, there is no tax on engine or vehicle size, and roads and parking spaces are designed for really big vehicles.
Many large American cars won't fit in many of the parking spaces I've seen in Europe. Some wouldn't even fit down some of the roads I've seen.
The market for large vehicles that use a lot of fuel, and are taxed out the whazoo is limited. So the purchase price may drop, but the carrying costs (fuel, taxes, parking) are still there.
Yes, there are large, gas-guzzling cars in Europe. But the market for them isn't huge. And those folks already have lots of money. Bringing the purchase price down a little isn't going to open up a huge market.
That's not to say that there isn't a market for US cars in Europe. But I don't think it's purchase-price dependent - it's making a car right for the market, that will sell in more than token amounts.
posted by 192.249....
, Thu, 2 Dec 2004 08:17:28 <-- Viewing This Message
, Thu, 2 Dec 2004 11:51:43
, Thu, 2 Dec 2004 10:11:53
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