Why are cars so expensive in some countries than others?
Climate protection measure is an important goal that most governments hope to achieve. But the middle income groups from the developing countries are growing and they can afford the car easily. Making the car more expensive is one of the ways to stop them.
Some government imposes taxes to discourage the purchase. In addition, some governments add other surcharges. There is even a government that makes car ownership relying on permits to further add on the cost of the car. An example is a government from Singapore, they do all of the above to discourage its people from buying.
The actual cost of owning a car only shows when you are driving it. It is not just the cost of a car. Petrol cost. which is low in petrol producing countries like the countries from the Middle East. But not for drivers from Norway, Hong Kong, and Singapore, who need to pay a high price for it. Besides that, there are road taxes that are high in Brazil, France, and Singapore.
Getting a car in Australia
When you purchase a car, the state government imposes taxes on top of the purchase price. The taxes are as shown below and they are often known as Rego (abbreviation for Registration).
1. Registration Transfer fee
2. Stamp Duty, depending on the value of the car.
3. Motor Vehicle Tax, to be paid annually by all the vehicles, In New South Wales, it costs $236 for a medium car and $289 for a bigger car.
4. Compulsory Third Party Insurance, It costs $410 per annum in Western Australia.
5. Luxury Car tax
If you buy a car from a dealer and the car costs more than $64,132, you will need to pay a luxury car tax on top of the Stamp Duty. For fuel-efficient vehicles, a higher threshold of $75,526 is set.
The luxury car tax (LCT) rate is valued at 33% over the LCT threshold.
Car wheels Australia are expensive due to the heavy tax system, For a new car, it is estimated that 20% of the cost goes to the tax.