Is this right? Apparently the base price for this car is around $60,000, so this person paid $195,000 ($60,000 + 2.25 * $60,000) for this car?
Is this right? Apparently the base price for this car is around $60,000, so this person paid $195,000 ($60,000 + 2.25 * $60,000) for this car?
It makes cars a small fortune compared to the US. When I tell Israeli coworkers that I paid about $6K for a 3 year lease of my chevy volt (after state / utility company rebates), their mouths drop. That's basically free to them.
Also in Israel it used to be common that a benefit you got from your company was a car (because it wasn't taxed as income). It could be similar in other european countries? which hides the cost of the car from many of the consumers. Now, Israel taxes cars basically like income so its not as common a benefit you see anymore (employees would rather have cash than a car). The only reason to get a car as a benefit if for some reason the company can get the car cheaper than you could have gotten it yourself.
Sure some cars are sexy and go fast, but you can't push them to the limit on the street, you're not on a track.
Also, it was a demo-car, the price was around $42'000.
There is an exception for cars under 10.000, I think there the taxes are around 95%.
For that reason, Denmark is full of super small cars and well serviced bigger and older cars.
Yet, I guess the author now moved to Switzerland, at least the number plate does not look danish at all.
It's similar when you buy a car in Oregon (no sales tax) and want to register it in Washington (10% sales tax). If that was a way around paying the tax, every single person in the state would be doing it. The government has thought of this as well. And if you say "oh, I'm even smarter than that, I simply won't register the car in Washington", that gets you a felony conviction when you're caught.
It's almost as if governments can anticipate some obvious loopholes and close them.
https://www.econlib.org/archives/2018/03/why_the_chicken.htm...
So as a private consumer instead of buying a $100k BMW and that ends up costing $225k you'd buy the $100k one, and an entry level $50k base model, and have $75k left to spend on moving parts over before you'd break even.
When that's considered tax fraud and when it's considered perfectly legal will differ by country. I assume it isn't illegal for danes to buy a new engine, seats etc. for their existing cars without needing to change the VIN.
So you don’t know
The chances of getting caught are high. If someone who dislikes you notices a car with Swedish plates staying the night too often, they might report you, and the fines for violation are terrifying, the tax itself with 50% on top if memory serves.