European car market

[Codswallop]

Why are new car prices so much higher in Europe (UK included) compared to markets such as the USA and Japan? It's not like we have excessive import duties like some other countries, and given the homogeniety of new 'global' car designs, it seems odd that we pay so much more for the same product.

Eg. New Toyota GT86 costs less than £15,500 in the US and a simialr amount in Japan, and we have to pay £10k more for what exactly?

Used car prices conversely are insanely low in the UK especially. How does such a disparity occur?

[mcflurry]

AFAIK the US cars are more basic, where as ours include the extras such as stereos and electric windows etc. Also we have the 20% VAT and reg taxes included, whereas sales taxes are added later..

[Ozzie Osmond]

It's all down to (1) tax and (2) the size of the market.

[Codswallop]

I forgot that taxes weren't included in the USA (though these are less than ours in any case, and wouldn't add more than £2k to a GT86). Size of market shoudn't have an impact either, especially now that cars are designed to be identical across markets. I can't imagine EU cars having £10k more equipment either... I think it's just manufacturers taking the pee tbh.

[Willy Nilly]

I think exchange rates can give a false impression of prices when you just to a straight conversion. Certainly when converting US $ to Sterling, it's better to say £1 = $1. I know a quid buys circa $1.56, but a dollar buys about what a pound does when you go to a shop, if you see what I am getting at.