New Hampshire Prosecution Threatens Auto Export Industry

June 2013

Despite the fact that luxury automobile manufacturers have dealerships and showrooms all over the world, prospective owners shouldn’t expect to find the same price tag associated with the latest sports car in New Jersey as they would in Russia. The price in foreign jurisdictions for the same vehicle may be tens of thousands of dollars higher than it is here in the U.S. While some of that price jump can be attributed to additional costs that come with exporting and selling automobiles in foreign jurisdictions, the bulk of the difference is purely profit driven.

Most people believe selling a Porsche in Russia at a $20,000 mark up is just smart business if the market is willing to pay, however a recent federal criminal prosecution in New Hampshire decided that this business model is not a two way street. The prosecution stated that while increasing the cost overseas is understandable, purchasing the same vehicle in the U.S. to cut cost is just unfair.

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