Can you elaborate? Because the tax also applies on spare parts, do the car will cost 40% more to purchase (25% is the tax that the manufacturer has to pay, so in order to keep the same net profit margin they had to increase much more the MSRP) AND will cost 40% more to repair
A car dealer, buys cars to sell, using cash supply that he expects to make 30% profit on (for example). Now that the cars suddenly require 25% more of his cash supply, he will still want to make the same percentage profit. So that car is going to cost you Original price+ 25% tariff +(30% of the 25% tariff).
TLDR The price of the car goes up MORE than just 25%. The dealer pays upfront, so he wants profit on however much he needs to pay. He’s not going to just charitably advance an extra 25%, which he probably borrows from an overdraft and has to pay fees/interest on, for free.
These numbers are hypothetical.
If the car costs 25% more on purchase, but costs 40% less in repairs, I’m gonna call that one a win 10 days out of 10.
Can you elaborate? Because the tax also applies on spare parts, do the car will cost 40% more to purchase (25% is the tax that the manufacturer has to pay, so in order to keep the same net profit margin they had to increase much more the MSRP) AND will cost 40% more to repair
make logic out of what you said
A car dealer, buys cars to sell, using cash supply that he expects to make 30% profit on (for example). Now that the cars suddenly require 25% more of his cash supply, he will still want to make the same percentage profit. So that car is going to cost you Original price+ 25% tariff +(30% of the 25% tariff). TLDR The price of the car goes up MORE than just 25%. The dealer pays upfront, so he wants profit on however much he needs to pay. He’s not going to just charitably advance an extra 25%, which he probably borrows from an overdraft and has to pay fees/interest on, for free. These numbers are hypothetical.