4 ms·
There's a legal way to avoid this sort of thing, which is to buy a cheap but upgradable vehicle and retrofit "parts", which usually aren't taxed at the same rat
by avar 7y ago
There's a legal way to avoid this sort of thing, which is to buy a cheap but upgradable vehicle and retrofit "parts", which usually aren't taxed at the same rate. The most famous example of this sort of thing is the "Chicken Tax":
https://www.econlib.org/archives/2018/03/why_the_chicken.html https://www.econlib.org/archives/2018/03/why_the_chicken.htm...
So as a private consumer instead of buying a $100k BMW and that ends up costing $225k you'd buy the $100k one, and an entry level $50k base model, and have $75k left to spend on moving parts over before you'd break even.
When that's considered tax fraud and when it's considered perfectly legal will differ by country. I assume it isn't illegal for danes to buy a new engine, seats etc. for their existing cars without needing to change the VIN.
- systemtest 7y agoExactly what happens in the Netherlands. Ford Mustang Ecoboost is €70k, a GT is €111k. For the difference of €41k you can easily put in a V8 with over 500 horsepower, change the wiring harness, change the ECU, brakes, suspension. For less than a GT you can pimp out your EcoBoost and create a better car.