I want one... but WTF...

arU4ic · 05-18-2011, 10:22 PM

So what is so different about the EU market that makes German Automakers think that their vehicles will do better in EU than in the US? The Audi line-up is amazing unless you live in 'merica.

WEAK.

iconoclast · 05-19-2011, 08:44 AM

the profit margins...

Stuttgartrob · 05-20-2011, 07:58 AM

Quote:

Originally Posted by iconoclast

the profit margins...

Exactly Profit Margin

Audi Q5 new in states is around $42,000
The Audi Q5 I ordered in Feb. is 56,000 euro ($79,000)

arU4ic · 06-01-2011, 11:17 PM

Why is Europe getting so gauged in pricing?

neunelf · 02-20-2013, 08:02 PM

Quote:

Originally Posted by arU4ic

Why is Europe getting so gauged in pricing?

Ever hear of VAT?

Nearly 20% built into the price of each product sold.

BSW · 02-21-2013, 07:25 AM

I don't get the VAT thing... a tax is a tax, profit margins should be more related to what the market can bear, and a higher VAT, if anything, should cause lower profit margins. People have XX amount of money to spend on a car, if more goes to VAT, then they buy a lesser car with a lesser profit margin. Now i agree that prices are definitely higher in Europe/England even after taking VAT into consideration, but i'm not sure we can blame VAT for that.

ithinkmac · 02-21-2013, 04:01 PM

past discussions have concluded that...

1. profit margin
2. certification
3. not enough buyers to offset (1) and (2).

But if using that logic, why bring the R8 over? wouldn't that have cost a hefty money to get certified for a small volume? Maybe the margins are like 50%. who knows Audi logic.

My 02 allroad was low volume and it made it over.

-ThinkMac-

john.g · 02-26-2013, 10:51 AM

In Europe you can buy individual options whereas we (in the NA) have option packages. I believe the intent is to group high and low margin options into more profitable packages to ensure that they get the money that they don't on the base price.

The VAT is a national sales tax and it varies between countries. What is different in the European approach is that all prices already include that country's VAT. Here in the US we don't usually quote prices with sales tax. I wish that we did. People would realize what they are actually paying in the end, and we like to hide that.

ayap · 02-26-2013, 12:10 PM

VAT in Europe makes things much more expensive. I use to live in Scandinavia where tax was at 25% of everything you buy.

The reason why Europe collects a lot of taxes is that the government takes care of you and your medical needs, especially when you retire. College education for your kids are also shouldered by the government. So, there's less need for Europeans to save for retirement.

06-01-2011, 11:17 PM	#4
arU4ic AudiWorld Senior Member Garage is empty, add now Join Date: May 2004 Location: San Francisco, CA Posts: 821	Why is Europe getting so gauged in pricing? __________________ Now: 2011 Audi Q7 S-line 2001 A4 2.8 Quattro Lost Loves: 2008 3.6 Q7 S-Line 2007 2.0T A3 2004 2.7T Allroad 2001 2.7T Allroad 2001 1.8T A4 Quattro

02-21-2013, 07:25 AM	#6
BSW AudiWorld Super User 2006 Jeep Wrangler Join Date: Jan 2002 Posts: 5,493	I don't get the VAT thing... a tax is a tax, profit margins should be more related to what the market can bear, and a higher VAT, if anything, should cause lower profit margins. People have XX amount of money to spend on a car, if more goes to VAT, then they buy a lesser car with a lesser profit margin. Now i agree that prices are definitely higher in Europe/England even after taking VAT into consideration, but i'm not sure we can blame VAT for that. __________________ 2006 Jeep Wrangler Unlimited 1990 Jeep Wrangler 4 cylinder - SOLD 2001 S4 Avant - SOLD

02-26-2013, 10:51 AM	#8
john.g Audiworld Junior Member Garage is empty, add now Join Date: Nov 2012 Location: Greater Seattle Posts: 44	I want one, too. In Europe you can buy individual options whereas we (in the NA) have option packages. I believe the intent is to group high and low margin options into more profitable packages to ensure that they get the money that they don't on the base price. The VAT is a national sales tax and it varies between countries. What is different in the European approach is that all prices already include that country's VAT. Here in the US we don't usually quote prices with sales tax. I wish that we did. People would realize what they are actually paying in the end, and we like to hide that. __________________ 2013 Q5 3.0T Prestige in glacier white/chestnut with driver assist, sport interior and S line. Built 2/12/13, delivered 3/30/13. Last edited by john.g; 02-26-2013 at 10:57 AM.

02-26-2013, 12:10 PM	#9
ayap AudiWorld Senior Member Garage is empty, add now Join Date: Sep 2002 Posts: 1,436	VAT in Europe makes things much more expensive. I use to live in Scandinavia where tax was at 25% of everything you buy. The reason why Europe collects a lot of taxes is that the government takes care of you and your medical needs, especially when you retire. College education for your kids are also shouldered by the government. So, there's less need for Europeans to save for retirement. __________________ ==================================== 2012 Audi S5 Monsoon Gray, Black Leather Tip Auto, Prem Plus+, Navi, Adv. Key, Carbon Fiber Trim, Sports Differential ---------------------------------------- 2006 Atlas Gray A6 Avant 6-Spd T-tronic, Prem, Xenons, Heated Seats, Bose, Wood Trim, 18s, Bluetooth ----------------------------- 2007 BMW 328xi Coupe 2Dr Sapphire Black (traded-in for S5) 2008 Infiniti EX35 2WD Black (gone) 2004 Mazda RX8 Gray (gone) 2003 Cobalt Blue Audi Allroad (gone)

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05-19-2011, 08:44 AM	#2
iconoclast AudiWorld Expert Garage is empty, add now Join Date: May 2001 Location: In, Out & Around... Posts: 27,624	the profit margins...

02-21-2013, 04:01 PM	#7
ithinkmac AudiWorld Member Garage is empty, add now Join Date: Aug 2009 Posts: 191	past discussions have concluded that... 1. profit margin 2. certification 3. not enough buyers to offset (1) and (2). But if using that logic, why bring the R8 over? wouldn't that have cost a hefty money to get certified for a small volume? Maybe the margins are like 50%. who knows Audi logic. My 02 allroad was low volume and it made it over. -ThinkMac-