Tesla New UK price VS USA price

[Bobby_Dazzler]

I’m sure many of you will know the answer to this

I’ve just priced up a Model 3 Performance with the self driving upgrade and did the same using the USA Tesla website and the got the following price vs UK

£65,290
$65,990

Any idea why the UK price is so high in comparison?

Maybe it’s the tax that needs to be added to the USA price?

 

[Glan gluaisne]

UK cars attract VAT that adds 20% to the price. I believe there's also an import duty of about 10%, as well.

 

[H Mak]

Not to mention the transport costs from SF via the Panama Canal to Zebrugge and then here. Also they have to have a separate production run for right hand drive cars, which adds cost

 

[White Eusebio]

Don't US cars have taxes added on top of the quoted price, depending on whwre you live?

 

[NickFie]

Don't US cars have taxes added on top of the quoted price, depending on whwre you live?

US quoted price is before tax. Also, ensure you configure US site for price before “savings” - Tesla’s estimate of government incentives and fuel cost savings.

Some exceptions, such as gasoline/petrol, where posted price includes all tax.

 

[Bobby_Dazzler]

So maybe the Gigafactory Berlin will allow the prices to be lower....

 

[TiLaSoul]

So maybe the Gigafactory Berlin will allow the prices to be lower....

Or the profitability to be higher.

With the market share they have in the premium segments at the moment, they have no need to lower the costs.

I can see them maintaining the price for a few years, wait for the competition to begin catching up then lower the price when they have to.

 

[NewbieT]

So maybe the Gigafactory Berlin will allow the prices to be lower....

Does anyone know what our trade tariffs with Europe will be in 8 weeks time?!

 

[nxsynjs]

Does anyone know what our trade tariffs with Europe will be in 8 weeks time?!

If they do, can they provide me with next weeks lottery numbers

I'm not sure we'll see any downward price reductions or equalisation. I've kinda given up comparing prices with UK vs the rest of the world as there is always something that needs to be factored in. Everything from the "handling fee" parcel force impose on items (once had a handling fee greater than the item I paid for) to customs duty etc. So it comes down to "Can I afford/need this now?"

 

[Jeeves]

Any idea why the UK price is so high in comparison?

Seems to be standard for US products for the reasons others have stated. For example, iPhone 12 Pro $999 in the US, £999 in the UK. I suspect these companies are making good profit out of it though because those prices are infrequently adjusted despite sometimes significant currency exchange rate fluctuations. There’s a good bit of hedge factored in there I think.

 

[seadog]

Pricing the same cars I get $66,990 (plus taxes and fees) against £65,290 (total cost) at todays rate $66,990 is around £51,380. UK VAT amount is £10880, so the UK price excluding VAT is £54,410. That leaves around £3000 to pay for import duty, shipment, registration fees, etc. By the time all this is paid I doubt they make much if any more profit on a UK sold car, wouldn't be surprised if it is less.

 

[GRiLLA]

The point being that the US is a confusing place where prices are shown before tax, and Americans recognise that they will be paying tax on top of the advertised price. In the UK the law is that for consumer products the price must be advertised after tax, and we are all used to paying the number we see.

 

[john19951]

I'm not complaining about UK prices. French prices are about 10% higher than UK.

Pity, as I would prefer to have a RHD drive car. But it's not just the price, it's illegal as well.

 

[gangzoom]

That leaves around £3000 to pay for import duty, shipment, registration fees, etc. By the time all this is paid I doubt they make much if any more profit on a UK sold car, wouldn't be surprised if it is less.

Don't know about now but historically UK prices have been the 'best value' once you take into account exchange rate and tax. Am pretty sure at one point in the past UK cars were the 'cheapest' world wide after all local taxes are applied.

 

[Exy1]

It has long been common place to simply swap the $ for a £ sign.

I was at a Car Show in The Kings Hall in Belfast a while ago when the Chrysler Viper was launched, the attractive girl at the stand was getting mightly pissed off with everyone's comments regarding the pricing.

So we went to look at R5GT Turbos instead

 

[SR-Plus]

So maybe the Gigafactory Berlin will allow the prices to be lower....

They’ll need to recover the costs of building the new factory. Labour is probably higher in Berlin compared to Fremont

 

[Rooster6655]

Basically US pricing is +tax which probably would be around 10-20% so similar prices, I’m not sure why people still don’t know about this.

 

[Drew57]

Basically US pricing is +tax which probably would be around 10-20% so similar prices, I’m not sure why people still don’t know about this.

My Daughter bought her Model X in Portland Oregon where basic State tax is zero & she paid 0.5% total, lives in Idaho (6%, nearest Tesla SC was Portland), previously California (7.5%).

There are a few small additional taxes in some states (ie California air quality management, city vehicle use, transportation improvement fees etc) but these only add a small amount ~1-2%.

 

[Rooster6655]

My Daughter bought her Model X in Portland Oregon where basic State tax is zero & she paid 0.5% total, lives in Idaho (6%, nearest Tesla SC was Portland), previously California (7.5%).

There are a few small additional taxes in some states (ie California air quality management, city vehicle use, transportation improvement fees etc) but these only add a small amount ~1-2%.

What about the more expensive state taxes?

 

[dan223]

As most others have suggested, the US price is without any tax. Tax then varies depending what state you purchase, so you need to add 20% here to begin with, Tesla then have to pay 10% import tax, and then the additional transportation costs compared to the US, there is probably also some hedging involved with the exchange rate to, and then you arrive at the price you see in the UK.