Cars have become more expensive than in most years over the past several decades. It is not just a problem for Americans. A low inventory of the microchips used in car electronic and infotainment systems has halted the production of some cars. Supply chains, both by water and truck, have been hampered. Car company earnings have been damaged. Too much demand, too little supply.
Almost the entire industry worldwide faces the same challenges. The global manufacturers are located in Europe, Japan, and the United States. They build cars used in well over 100 countries. One shortage can affect sales in countless places.
Car prices vary widely from nation to nation. Much of this has to do with what people can afford. Cars, for example, are relatively inexpensive in India, Mexico and Pakistan. If cars sold for the prices they do in the parts of Europe, almost no one would own a car.
Not surprisingly, the countries with the highest prices for cars are highly developed and have populations with high incomes. A few are island nations, which means that costs to ship cars can be high.
The nation with the highest prices for cars is Singapore, according to the Global Economy Vehicle Price Country Ranking. Across all the world’s nations, Singapore ranks fourth in gross domestic product per capita. It is also relatively remote from large manufacturing facilities.
The Maldives is next on the list. Although its GDP per capita is modest, it is among the most remote nations in the world, about 1,000 miles from the Asian mainland.
The small island nation of Brunei is third, followed by Barbados, which is another island country.
Theoretically, car prices have a way to go before they peak. Not only could the semiconductor shortage run into next year, but as newer cars add expensive features, the base costs of many models will rise. Both dealers and manufacturers have become used to higher profits. Their ability to support those could grow because consumers have been conditioned to believe that they need to pay much more for a model than they did just two years ago. What had been a disaster for car companies may turn into a bounty.
The measure of car prices by country is based on a global average of 100. These are the 20 countries where cars are most expensive:
- Singapore (327.34)
- Maldives (298.82)
- Brunei (210.83)
- Barbados (188.08)
- Iran (182.05)
- Seychelles (181.37)
- Trinidad and Tobago (176.85)
- Israel (166.02)
- Bermuda (165.98)
- Angola (163.86)
- Antigua and Barbuda (162.28)
- Vincent and the Grenadines (162.20)
- Nepal (157.08)
- Denmark (155.59)
- Sao Tome and Principe (154.82)
- Belize (153.49)
- Grenada (152.89)
- Zimbabwe (152.00)
- Malawi (151.52)
- Sri Lanka (150.75)
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