Why Are Cars So Expensive in Turkey? Price and Tax Comparison with Germany and France

Today, we're going to explore a topic that often surprises foreigners in Turkey: the high cost of cars. We'll discuss the reasons behind these high prices, including taxes, import costs, and other factors. We'll also compare car prices in Turkey to those in other countries and give some examples. I will use Peugeot 208 and Mercedes AMG GT 4-Door Coupé for comparison. Let's get started!
Section 1: Taxes on Cars in Turkey
One of the primary reasons why cars are so expensive in Turkey is the high tax rates applied to both domestically produced and imported vehicles. The taxes levied on cars in Turkey include:
- Special Consumption Tax (SCT): This tax is based on the car's engine size and can range from 45% to 220% of the car's pre-tax price. Smaller engines have lower tax rates, while larger, more powerful engines face higher rates.
- Value-Added Tax (VAT): A VAT of 18% is applied to the total cost of the car, including the pre-tax price and the SCT.
These taxes significantly increase the cost of cars in Turkey, making them far more expensive than in countries with lower tax rates."
Section 2: Import Costs
Another factor contributing to the high cost of cars in Turkey is the cost of importing vehicles. Turkey has limited domestic car production, and many popular brands and models are imported from other countries. Import costs include:
- Customs duty: Imported cars are subject to customs duty, which ranges from 10% to 20% of the car's value, depending on the country of origin and the car's specifications.
- Shipping and logistics: Transporting cars to Turkey adds to the overall cost, as well as any additional fees associated with the shipping process.
These import costs, combined with taxes, can make even more affordable cars relatively expensive in Turkey.
Section 3: Comparison with Other Countries
To illustrate the difference in car prices between Turkey and other countries, let's look at a few examples:
- Peugeot 208: In France, the base price for a Peugeot 208 starts at around €17,000. In Turkey, the same car can cost upwards of 675,000 TL (approximately €32,000), thanks to taxes and import costs.
- Mercedes AMG GT 4 Doors: The price for a Mercedes AMG GT 4-Door Coupe in Germany is around $110,000. In Turkey, the same model costs up to 8,074,000 TL (approximately $400,000).
As you can see, car prices in Turkey can be significantly higher than in countries, even for the same make and model.
Section 4: Tips for Foreigners Considering Buying a Car in Turkey
If you're a foreigner living in Turkey and thinking about buying a car, here are a few tips to keep in mind:
- Consider purchasing a used car: Used cars in Turkey can be significantly cheaper than new cars, especially if they're a few years old. Make sure to research the car's history and condition before buying.
- Opt for a smaller engine: As mentioned earlier, cars with smaller engines have lower tax rates in Turkey. Choosing a car with a smaller engine can help you save money on taxes.
- Use public transportation: Turkey has an extensive public transportation system, particularly in major cities. Depending on your needs, you may find that using public transportation is more cost-effective than owning a car.
By considering these tips and weighing your options, you can make an informed decision about whether or not to purchase a car in Turkey."
Conclusion:
We hope this video has shed some light on why cars are so expensive in Turkey. High taxes, import costs, currency fluctuations, and limited domestic production all contribute to the elevated prices. By understanding these factors and exploring alternatives, you can make the best decision for your transportation needs while living in this beautiful country. Thanks for watching, and don't forget to like, share, and subscribe to my channel for more helpful content on Turkey and beyond!
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My Channel: My name is Burak Unal. I am a professional investment and immigration advisor in Turkey for foreigners.
Turkey is an amazing destination for expats and foreign investors. On my KZbin channel, I share my insights about investment and immigration procedures in Turkey.
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Time Codes:
0:00 - Intro
0:55 - Section 1: Reasons of High Car Price
3:41- Section 2: Comparison of Car Price Between Turkey, France and Germany
6:24 - Section 3: Tips for Foreigners Who Want to Buy Car
8:03 - Final