Europeans saving thousands by buying cars in U.S.

Posted Fri Jun 13 2008 8:21 AM by Viknesh Vijayenthiran

Europeans saving thousands by buying cars in U.S.

The weakening U.S. dollar compounded with low vehicle sticker prices is drawing more and more European consumers looking to make a hefty saving on the purchase of their next car. Savings of up to 30% of the cost of similar models in Europe, even after the costs of shipping it back home plus compliance and registration are included, is not uncommon.

Dealers in the U.S. experiencing plummeting sales due to the downtrend in the economy and rising fuel prices are more than happy to sell more vehicles, but carmakers, who rely on the higher margins of vehicles sold in Europe, are fighting to block the practice.

Private imports of new cars have surged in Europe despite the many hurdles individuals need to cover before they can use their vehicles. They also need to have their cars modified to meet European road-safety and emissions requirements, and this can void warranties.

Speaking with the Wall Street Journal, a German saved close to $31,000 on each of the three vehicles he imported – a year-old Volvo XC90 for $36,000, a year-old XC70 for $27,000 and a two-year-old BMW X3 SUV for $27,000. Even after taxes, shipping costs and alterations to meet European standards, he estimates he saved 20% to 30% of what he would have paid to buy the cars in Germany.

Carmakers are fighting back, fining those dealers involved in the private import business but when it comes to second hand cars there’s nothing they can do.

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Reader Comments

  • Fri Jun 13 2008 9:54 AM

    Gus says

    Interesting.
    I remember back in the 80's how cheap it was to buy a car in Europe and bring it over on the "grey market". Now the times have changed...

  • Sat Jun 14 2008 10:31 PM

    Ed says

    It's funny.. car makers are ALWAYS trying to win. It happened in Brazil also, when they opened the borders to import. People started to buy second hand cars in US but the auto industry made a HUGE lobby (= bribe) on the politicians so they changed the law and didn't allowed that anymore...
    Money... it's always about the money..

  • Sun Jun 15 2008 7:52 AM

    ex says

    Most of the large companies that sell their products both in Europe and in the USA are used to the idea that the $ and the € are 1:1 when euro is really 1,53 $, so some cars cost up too twice as much in some european countries, but when most people in Europe are prepaired to pay much more for the same product, then there is nothing anyone will do, since most people are not aware of this.
    For instance
    A New Nissan 350Z costs at least 28000 $ in the USA ( I think that's without tax) a very similar Nissan 350Z costs 30933€ in Germany also without tax, BUT 1€ IS 1,53$ this is 47421$ now that is almost 20000$ more! And it's prety much the same with most other cars which are sold worldwide, and same goes for gas and most consumer electronics.
    Of cours one might say that the german market model has beter trim, sure but still doesnt justify a 20000$ price difference.

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