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Two European Countries 40% Difference in Price of Volkswagen Passat

If you are like most people, you probably check out prices at several competeting dealerships before deciding where to purchase a new automobile. The price difference between these dealerships might be a couple hundred, at most one thousand dollars, however if you live in the European Union, the differences in prices between dealers in your country and those in neighboring countries could be a bank-account-emptying 20 percent. One would think that with the same local currency, all countries in the Euro Zone would have the same or similar prices on an item as standard as car; however this is not the case and is exactly what car companies want you to think. As a result, consumers are spending thousands more than you have to.

Although the price gap is improving, there are still forces keeping car prices at a huge differential, making it beneficial to the consumer to take the time to shop around. A big issue within the European Union is the difference in prosperity among different members. Some of the newly joined countries still have economies less developed than those of the senior members, and as a result car companies will lower their prices to accommodate these poorer consumers. The Auto Block Exemption law and its fading influence also contributes to the enormous gap. The recently abolished rule allowed car makers to place restrictions on car dealers and hamper free trade and equal pricing across the EU. Taxes also have a huge influence in creating differences in car prices since a country’s tax often gets figured into the price of the car. In a country with high taxes on automobiles, automakers will accept less profit in order to make their car more affordable.

In the market for a new car and want to take advantage of these price differentials? If this is the case then avoid Germany as a shopping destination. Ironically, German automobile prices are the most expensive in Europe even though it is the home of many manufacturers and designers. On a Volkswagon passat the price is 40% higher in Germany than it is is Greece. The second most expensive country for automobile purchases in the EU is the United Kingdom, where cars are considered to be overpriced compared to other EU countries, even after taking the pound/euro exchange rate into account. Getting a good deal on automobiles in Europe is as easy as shopping around or simply getting on a plane to Finland, where the deals are the best in the European Union.

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