Why are Mercedes Benz cars so expensive?

  1. Assume worth of Benz CLA 220D is around 10 lakhs.
  2. 104% approximately import tax, that will end up 20 lakhs approximately .
  3. Now dealers also want to make some profit, so keep some 20% , now the car price is around 25 lakhs.
  4. When You want to drive it on roads, You must pay road tax, around 8 lakhs, so it is now around 32 lakhs.

To drive a car worth of 10 lakhs, You are paying govt around 15 to 20 lakhs extra, this is why it is soooo expensive.

Why people takes expensive cars?

When we compare these cars with our India car manufacturers, these cars looks much more stylish in comparison with Indian cars. These cars are also much more safer because they focus on built quality with many safety features. Although these cars are stylish as well as safe.

These cars are also a status symbol for the rich people. These became famous brands for the people who are themselves a brand. People opt for these cars which can fit there status.

Like a multi-millionaire could not travel in Maruti car because that is not made for him. There is a 99% chance that he would buy a expensive car like BMW, Audi, jaguar.


Why import taxes are so high?

When a person take an imported vehicle it costs him more than twice because the import tax which government charges is 104% which doubles the price of the vehicle.

It is a medium by which government makes a lot of money. A person who can afford a luxury vehicle can definitely pay the taxes.

Second reason for high taxes are that government encourages companies to setup there manufacturing plant in that country which may help in the employment in that country.

Does luxury cars have resale value.

No, luxury cars do not have resale value because successful people do not buy an old product mostly and a normal person takes it at very reasonable price because it have very high maintenance because of that its resale price becomes very down.

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