There are several factors that can determine the worth of a vehicle, cost of raw materials, cost of labor, cost of equipment, cost of certain features, not to mention tariffs, transportation, and the dealers who get their cut of the action. Some vehicle manufacturers of differant countries have to pay higher tariffs and taxes than others, all of which gets passed on to the buyer and so on.

What Sunblynd said in his answer about parts and taxes/labour ectcosting more is indeed true, however there is one more reason... NAME!!! An example, Rover 75 cost around 9,000 UK Pounds whereas the MG ZR costs 12,000. The 2 cars are identical except for the name, Rover make MG and the cars are identicle.

1) Some cars are better than others, and some people agree to pay more to get a better car. For instance, they give you: - more security - more miles pro gallon (liter / 100 km) - a more beautiful design - more silence and tranquillity inside - better stability by curves - better motor, for instance for better accelerations - better resistance to various weather conditions - more interesting, up-to-date extras - more individual configurations - ecological issues 2) Other important points are the costs of ownership, the warranty conditions and the service organization. 3) Some costs must be included in the price, which could be different, such as costs for the used materials, for the assembly, workers wage level, shipping, customs, publicity etc. 3) Some brand have over the years aquired a very good reputation, and this can make their price higher. You usually rely more on some product which already has a good name. Sooner or later, you have a lot of drawbacks if you do not work according to your reputation. 4) Sometimes a particular model can be a hype, for various reasons, not only because of a good marketing campaign or a successful commercial. 5) By an agressive marketing campaign, it could be that some price would be set lower to get a bigger market share. 6) here some information about the issue Mercedes vs. Toyota: http://www.newcars.com/mercedesbenz/mclass/reviews/toyota-sequoia.html http://www.newcars.com/mercedesbenz/glclass/reviews/toyota-landcruiser.html http://www.autoblog.com/2006/06/14/diesels-vs-hybrids-daimlerchrysler-vs-toyota/ Further information: http://en.wikipedia.org/wiki/Automobile