Why are things so expensive in the U.K.?

[Cam A]

Cars in Canada are roughly the same price in Canadian dollars as the same car in the UK in pounds. Why? Lower volume due to right hand drive? R/C stuff is similarly comparatively expensive. Are there duties preveting market forces from leveling things out?

[f1nn]

Tax?

[GTIR]

Are they European cars?

[crofty1984]

Don't know about new cars, but second hand we do really well compared to the continent.

[JREwing]

Exchange rates and marketing can play a big part.
Look at the price of the same car in Scandinavia or the Netherlands or Russia and then say it's expensive here.

[mikefacel]

What's the VAT rate in Canada? 20% in UK.

And, also, companies charge what the market will bear - so if Brits will pay more for new cars then the manufacturers will do that. Interestingly, used cars in the UK are cheaper than (most of?) the rest of Europe - partly due to RHD but mainly due to Brits liking shiny new cars rather than scummy second hand. (thank God!).

[Benny Saltstein]

I have to keep a straight face when Scandi-based colleagues tell me how much they've been wallet raped for on a new car.

[GroundEffect]

The UK is cheaper than a lot of places such as Germany and especially more than Asia.

North America is not one of them because they have the purchasing power of a huge market and local manufacturing plants and strong currencies.

[Cam A]

The VAT equivalent is a blend of federal and provincial rates. 12% total in Manitoba, 7% in Alberta. The tax is after the ticket price, not included. Is it included in UK? US is even cheaper. The last of the plain jane Corvettes were rumoured to be going out the back door for $35,000!

[Caulkhead]

Cam A said:

Cars in Canada are roughly the same price in Canadian dollars as the same car in the UK in pounds. Why? Lower volume due to right hand drive? R/C stuff is similarly comparatively expensive. Are there duties preveting market forces from leveling things out?

Are they?

Nissan Canada for example wants $19,998 for a basic 1.6 Juke, Nissan UK want £12,995. Convert the Canadian price to Sterling and it is £12,834.56. Convert the Sterling price to CAD and it's $20,254.23.

[JREwing]

Also, go for a pint in Canada and compare the price to here. Canada is NOT an especially cheap country at all.

[Cam A]

Subaru BRZ in US and Canada is 27,295. 24,995 in UK.

[Caulkhead]

Cam A said:

Subaru BRZ in US and Canada is 27,295. 24,995 in UK.

So we've concluded some things are cheaper in Canada and some things are the same price?

[JREwing]

Caulkhead said:

So we've concluded some things are cheaper in Canada and some things are the same price?

And some things are more expensive.....

[Caulkhead]

JREwing said:

Caulkhead said:

So we've concluded some things are cheaper in Canada and some things are the same price?

And some things are more expensive.....

Indeed, the OP's assertion is falling apart!

You also have to allow for Canadians having poorer levels of pay than the UK:

http://www.bbc.co.uk/news/magazine-17543356

[chrisw666]

JREwing said:

Caulkhead said:

So we've concluded some things are cheaper in some places and some things are the same price?

And some things are more expensive.....

You need to show your workings to get an A*.

[EDLT]

American (or Mexican) built cars are probably cheaper, but European ones are more expensive. Our cars depreciate far faster too.

[Caulkhead]

chrisw666 said:

JREwing said:

Caulkhead said:

So we've concluded some things are cheaper in some places and some things are the same price?

And some things are more expensive.....

You need to show your workings to get an A*.

I thought you just had to spell your name right to get an A* these days?

Another example - Jag KK, $98k there £65k here - pretty much the same price.

[JREwing]

chrisw666 said:

You need to show your workings to get an A*.

When I get to the computer I'll find some specific examples if you'd really like.

Either way, the price of one Toyota/Subaru in two different markets is hardly proof that everything in the UK is incredibly expensive.

ETA: I've never had the option of A* anyway so I'm not too bothered. When doing my A-Levels you had to accept the mere proletarian A.

[Leins]

Benny Saltstein said:

I have to keep a straight face when Scandi-based colleagues tell me how much they've been wallet raped for on a new car.

And over here in the Rep of Ireland. A new M5 starts at over €135k. This is due to our government's "Vehicle Registration Tax", which even the EU have criticised as just being excise duty by another name

However, the extortionate rate of annual motor tax on anything up to 30 years old means that secondhand prices on any interesting cars here are very low