Portugal vs Spain. In the “game” of new car prices we always lose
Portugal debuted this Thursday in the Football League of Nations with a draw (1-1) against neighboring Spain, but in the “game” of new car prices, Portugal always loses to the Spaniards whatever the year, whatever the brand and whatever the segment.
It’s something we’ve grown used to seeing and accepting. “It’s our taxation”, we almost always justify. But after all, how much cheaper can the same car be, with the same engine and with the same level of equipment, in the neighboring country?
We compared the price of eight new cars in Portugal and Spain and the bills. And the results were not thought out.
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A GR86 for the price of a… C-HR
And let’s start with one of the cars of the moment, the Toyota GR86. Because countries this sport was also one of those responsible for this article — in addition to the football game between the two, of course. When we saw the price of this «toy» in both countries, we couldn’t believe it.
In Portugal, the Toyota GR86 starts at 48,000 euros and can reach 52,000 euros in the most equipped version. In Spain it is more than 15,000 euros cheaper: it starts at 32,900 euros(!). About the same as a C-HR 1.8 Hybrid Square Collection costs us.
ALSO READ: GR Corolla vs GR Yaris. Where to buy the 43 hp more?
A guilt? Well, what we said above is not cliche; the fault lies with Portuguese taxation, which does not “forgive” the 2387 cm3 four-cylinder boxer, making the cheapest version of the GR86 around here cost 5010 euros more than the GR Yaris.
And in almost all markets it is the other way around. In other words, the GR86 is a «gateway» to the Gazoo Racing universe.
An (even) more extreme case
But there are even more blatant examples in sports. Let’s look at a more extreme case, the Ford Mustang GT. It comes equipped with a huge V8 with a capacity of 5.0 l and 450 hp, so the discrepancy is simply brutal: in Spain it starts at 56,730 euros; in Portugal the same version of the model costs 141,216 euros.
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Yes, you read well. We are talking about a difference of approximately 85 000 euros. In other words, with the price of a 5.0 liter V8 Mustang GT in Portugal you can buy two copies in Spain and still save almost 28,000 euros.
The 5.0 V8 engine is highly hampered by Portuguese taxation and makes this an extreme case. But as we mentioned above, this is a trend that can be seen in all segments. Here are some examples to help you understand this:
Model | Version/Engine | Portugal price | Spain price | Difference |
---|---|---|---|---|
Peugeot 208 | Allure 1.2 Puretech 100 hp | €22,010 | 20 290 € | €1720 |
Dacia Sandero | Comfort 1.0 90 hp | 14 500 € | 13 440 € | €1060 |
Ford Focus | ST Line 1.0 EcoBoost 125 hp mHEV | €30,734 | €26,376 | €4358 |
Volkswagen T-Roc | Life 1.0 TSI 110 hp | €31,443 | €29,675 | €1768 |
Volvo XC60 | Core B4 2.0 Diesel 197 hp | €68,729 | €57,947 | 10 782 € |
I draw» the case of the «Volkswagen T-Roc, produced by Autoeuropa, which the Spaniards are able to acquire for a lower price, or the case of the Volvo XC60 which reflects the penalty for Diesel, aggravated in Portugal, as differences .
and the hybrids plug in?
On account of tax benefits, namely through the discount on ISV payment — hybrids plug in with 50 km of autonomy for a total of 25%, the difference in price between the value I only give in other proposals with engines at the end of Portugal.
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But that means that the differences do not go away and that the Spanish buyers benefit again. Take, for example, the case of the DS 9, available only in Portugal as a hybrid plug in.
The hybrid engine plug in most powerful of the DS 9 has 360 hp of maximum combined power. With the Performance Line + equipment level, it is available in Portugal with a price from 76,000 euros. In Spain, the same model costs “only” 67,700 euros, less 8,300 euros.
In the case of 100% electric, the differences are even smaller as they are exempt from ISV in Portugal. The difference ends up being summed up in the VAT of the two countries — 23% in Portugal and 21% in Spain — and the differences between the prices of vehicle bases.
The differences don’t end here…
Spain figures show, beyond any doubt, that in the «game» of car prices, Portugal loses between the two countries, Portugal always loses to two countries.
But there is still an additional aggravating factor, when we look at the difference in average income in the two countries.
According to the most recent data from the Organization for Economic Co-operation and Development (OECD), the average gross annual salary in Portugal is 28,410 dollars, the same as 26,441 euros, and in Spain it is higher, 37,922 dollars, something like 35,293 euros.