Comment by lini | Hacker News Reader

Comment by lini | Hacker News Reader

I know of several businesses here (Europe) that specialize in importing cars from the USA. It is ridiculous how much more expensive a similar Mercedes Benz or a BMW is, compared to the USA. What they do is buy cars that have a couple of thousand miles on them and are ~6 months old. This makes them "second hand" and not new so they fall under different legislation. The cars are shipped inside containers on ships and even after all taxes are paid they still cost much less than the same car (similar mileage and age) bought from here. The only problem these companies face is legalizing the cars in Europe - e.g. blinkers here must be yellow. However, this is also relatively easy to fix by buying the needed parts here and installing them on the cars before registration.

The car manufacturers need to understand that we live in a global economy and what they experience now is something that film distributors already went through more than 10 years ago with DVD region codes. If its profitable to ship something from another part of the world where it is legally bought then people are going to do it.

It would be kind of hilarious to buy a BMW as "European Delivery", pick it up in Europe, drive it for the maximum period there, then send it back to the USA (cost included), drive it (or store it) for 6 months, then ship it back to Europe. I wonder for which models this actually makes sense.

(US doesn't get many nice models like the 550d, though)

There are import taxes, there is a cost of shipping it back to Europe and there's a cost of re-certification to European standards. It still makes sense $-ly, but it's a hassle.

Maintenance/warranty and resale are the main things which dissuade me from doing this (although I'd probably do it for a Model S; probably not for a BMW).

That doesn't make any sense. BMW and MB are much cheaper in Germany than the US, if you exclude VAT. I know this because some friends stationed near Bitburger bought 2 5-series, had them prepped with NTSB bumpers and lights. Then shipped them, on the Air Force's dime, to the US. 2 years later, they sold them for more than they paid. Duty was 1.5%, sales tax was 4.5%

Unless the cars were built in the US, like the X5, there is no logical way to make it less expensive to re-import into the EU.

Car manufacturers are way ahead of film distributors in the global economy. Outside of luxury cars, most are manufactured in the country they are destined for. Or they setup a bilateral trade agreement (like Mazda and Ford) where carA is made in CountryA, carB is made in CountryB and both cars are sold in both markets.

> If its profitable to ship something from another part of the world where it is legally bought then people are going to do it.

You've never had your cargo held up in customs I assume. Airports don't count.

Well, BMW/MB might be cheaper in Europe if you get cheaper models and trim levels that aren't available in the US.

As for being cost effective enough to overcome 30% depreciation in two years, frankly it sounds like a bit of a tall tale and I'd like to hear the specifics.

Gotta love that US wood grain look. Nobody kills a the euro look of a euro car like the Americans.

No, euro models have even better trim.

I just checked the BMW site, 535i starts at 57000euros TTC, and $60000 without sales tax; Germany and US, respectively. Remove 20% VAT and its 45000 euros ($60000). Take it to a location where almost new, luxury cars with low mileage are a rare breed (like an airbase in North Dakota, Alaska, etc.) and 30% depreciation isn't a factor.

If there is any tall tale reselling a car back in its export market is one. Containers cost money, shipping a car costs a lot of money, duties and taxes costs lots of money.

Bitburg Baron checking in. Didn't expect to see Bitburg mentioned in this thread. True that many an Airman bought cars and shipped them

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