Brazil’s Ridiculous $80,000 Jeep Grand Cherokee
One might think that paying $80,000 for a Jeep Grand Cherokee means it
comes equipped with wings and gold plated rims. But in Brazil, it comes
standard.
The 2013 Jeep Grande Cherokee cost Brazilians a
stellar R$179,000, or roughly $89,500. Import duties and other taxes make it so
that the Brazilian buying a muscular Jeep Cherokee could have bought three of
them if they were living inMiami like their friends. In the U.S., the 2013 Jeep Grand Cherokee will
run you about $28,000. That’s nearly half the median American income, but
$89,500 is light years away from median Brazilian incomes.
Not to be outdone, The Chrysler Group is going to
launch its 2013 Dodge Durango SUV for even more than the Jeep’s sticker price. The
Durango will be showcased at the São Paulo Auto Show in October for a cool
R$190,000 ($95,000). In the U.S., it goes for around $28,500. An elementary
school teacher in the Bronx public school system can buy one. Okay, maybe not
brand new, but a year or two old…absolutely.
There is no reason other than massive taxation of more than 50 percent
and consumer naivete that thinks paying the sticker price of a BMW X5 is the
same value as buying a Cherokee. Sorry, Brazukas…there is no status in a
Toyota Corolla, Honda Civic, Jeep Grand or Dodge Durango. Don’t be fooled by
the sticker price. You’re definitely getting ripped off.
Think of it this way, what if your American friend told you they just
bought a $150 pair of Havaianas. You’d tell them they paid too much. Sure those
flip flops are sexy and trendy and chic, but they are not worth $150.
When it comes to cars for status in Brazil, the upper classes are serving up
Pitu and 51 in their caipirinhas and thinking its top shelf liquor.
For those who can read Portuguese, check out Noticias
Automoveis, a blog about cars in Brazil. They have an article explaining in detail where most of the money goes in the sticker price of Brazil’s
expensive auto market.
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