The final section of the three-part series “How Much is Your EB-5 Investment Visa Worth?” looks at the benefits EB-5 investors and residents of the United States when purchasing a car or automobile compared to in their home country.
This article will mainly compare between the United States and China, due to China contributing to the most EB-5 investors.
#3. Purchasing an Automobile
In the United States, the majority of the population uses personal vehicles as their primary source of transportation. In the United States, as of October 2016, the sales of personal vehicles reached over 18 million new car sales for the year.
The LA times reports that there are currently 253 million cars on the road throughout the United States.
In China, personal vehicles are not the most popular mode of transportation- this is due to the differences in public transportation systems as well as the location of where most citizens live. However, China has a very similar number of total vehicles on their roads with over 244 million, according to a report by the Wall Street Journal.
The cars that will be examined for this article’s purpose is a BMW 3 series. These are common in both countries and will show the differences in how much it can cost to have a luxury car in the United States and China.
In China, multiple factors contribute to the total end price of the vehicle being purchased. The BMW 3 series has a base price of just under 450,000 Yuan. When converted into dollars, this comes to around $75,000 USD. After paying the price of the physical car, there are other fees that a buyer must go through.
These include the following:
- Emissions test fee
- Registration fee
- Taxes: road, appraisal and user
- License plate
While the fees are manageable, the one that truly adds expense to the price of buying a car is getting a license plate.
Why is this?
Because there is so much traffic congestion in China’s major cities, the government has created a lottery on license plates to limit the number of new cars that are allowed on the road each year. This means that the license plates of cars have become incredibly valuable, with Bloomberg reporting that the price of a license plate can exceed 90,000 Yuan or $14,500 USD.
Along with the additional minor fees mentioned previously, a BMW 3 series is going to cost over $90,000 USD!
How does that compare to the United States? Let’s take a look.
Using Kelly Blue Book, one of the most reliable sources when looking at US car values, a BMW 328i in the Seattle area will sell for around a base price of $35,000 USD. Even if we add in all the taxes and fees, which we did not when looking at a Chinese purchase of a BMW 3 series, the final price of the US BMW will come out to be just over $38,000 USD.
When comparing the two purchases, there is a huge benefit to buying a luxury car in the United States vs. China.
In our comparison, a standard luxury car, which is both imported can have a difference of over $50,000 USD. Someone could buy two BMW 3 series in the United States and still have leftover money than what it would cost to buy just one of the same cars in China.
If you have not been able to read the first two parts of “How Much is Your Investment Visa Worth?”
By reading these first two parts, you will be able to see that EB-5 investment visa can provide so many more benefits along with your permanent residency in the United States. You can save tens of thousands of dollars on homes or property, you or your children’s college education, and you can save when you purchase a vehicle. These are just bonuses that come with your EB-5 investment visa.
If EB-5 is something that you are considering, and you want to take advantage of some of the additional benefits that come with being a permanent resident of the United States, contact WTC-SF 888-775-0778 or email us email@example.com, and find out how to get started with your EB-5 investment visa today.
The information in this article is meant for general information purposes only and should not be taken as legal advice. Please consult an immigration attorney for your specific immigration needs.