Tariff cuts the price of cars by 50,000? Dealer: This is impossible

Tariff cuts, media forecasts, consumers wait and see, but no matter how you wait and see, with their expectations will be much worse.

Since the announcement of tariff reductions, there have been articles on the Internet for statistics on the decline in various models. But is this really the case?

On May 25th, the reporter of “Automobile Business Review” interviewed several dealers operating the US and Middle East imported cars. The answer was: “Not much change”.

"It is impossible to drop 3,5 million."

On May 22, the Customs Tariff Commission of the State Council announced that, starting from July 1, 2018, the import tariffs on autos and auto parts will be reduced. After the tax reduction, the average tax rate for China's auto vehicles is 13.8%, and the average tax rate for parts and components is 6%.

Taking the BMW X5 as an example, the prices of various media after calculating tariff adjustments will drop by around 50,000 yuan and enter the 600,000 yuan range. This price reduction has given many consumers the desire to purchase.

However, when interviewing a dealer specializing in US regulations and the Middle East version of the BMW X5, the reporter stated to reporters that at present, people are very concerned about tariff adjustments, and many consumers still take a wait-and-see attitude. But no matter how he waits and sees, his expectations will be much different. Although the price will drop, the decline will be very small. It will be impossible for the media to calculate a decrease of RMB 3,500,000.

As far as brands are currently sold, except for some niche models, models priced at less than 500,000 yuan have basically been made domestically, and there is no need to buy import versions.

According to the tariff adjustment rate, only the models with more than one million will have a decline of 3 or 5 yuan.

However, the purchase of millions of models is relatively fixed, for this 3,5 million don't care, plus dealers usually have 3 to 5 million discount on this model, so the impact on the price of the car is not.

The interviewed dealers said: "If all the cars have dropped so much, we will lose big because we are already in a deficit state. Who wants to lose? And now we have not declared, more than 100 cars are in the port. I would rather wait until July 1 after customs clearance, so we can bring back the cost."

As a result, since the cars on the market sell more and more, the prices will gradually become stable, and it will take a certain period of time to go through the customs clearance procedures, so that the possibility of a drop of 30,000 to 50,000 yuan is almost zero.

"will continue to consume"

At present, there is still one month before the official tariff reduction on July 1st. When asked if the price will be adjusted in advance within the time of this month, the dealer said: "No change, up to 10,000 yuan. Left and right, despite eager to get rid of, there is no limit to the price. "

"After July 1, we will wait and see the market, but up to about 10,000 yuan on the basis of current prices."

According to the reporter’s understanding, in the face of such a situation, the situation of each dealer is different, and the number of distributors with relatively small scale is about tens or twenty vehicles. Due to the pressure, they will declare customs in advance. The purpose is to Want to deal with the low price of the car, quickly return the funds.

Especially for merchants who import millions of luxury cars, if they declare before this, each car will have a loss of several hundred thousand yuan, so consumers will get some benefits when they purchase such vehicles, and larger dealers will continue to Consumed.

Another dealer who is a US importer of parallel imported vehicles disclosed to reporters that since the vehicles they are currently selling are goods imported before the tariff reduction, it is impossible to cut prices.

Only if the car in the hand is sold out and waiting for the next batch of vehicles to come again can the situation be adjusted, but even the adjustment will not change.

Taking the US Mercedes-Benz G550 as an example, after the US dealers learned that the tariffs had dropped, domestic car dealers had increased their prices by more than 10,000 U.S. dollars.

If you do not increase the price, according to the price after the tariff reduction, this G550 will be reduced to 1.5 million yuan, will directly lead to Mercedes-Benz 4S shop's G500 regulations (156.88 million yuan tax) can not be sold.

On the whole, the drop in tariffs will certainly affect the price of imported cars, but the purchase price, consumption (displacement) tax, and luxury goods tax (for prices of more than 1.2 million yuan) will play a decisive role in the cost of buying cars.

Because the consumption tax of models with displacements above 4.0L is as high as 40%, this is also the main reason why many European and American large-displacement models do not want to come to China.

For example, a model such as the Dodge Challenger SRT is not expensive, but the CIF price is not high, but the consumption tax and luxury goods tax are the same as the original. In contrast, the rate of tariff reduction is very limited, and it is in sales. The help is minimal.