New cars prices comparison:Big Island-main land (Hilo: buying, transport)

[StillHope]

Does anyone know if the price for the same type of vehicle is higher on Big Island than on the mainland because of shipping?
Is the choice limited? It looks like there no Volvo dealership in Hilo.
Would appreciate any personal experience.

[scirocco22]

While you're waiting for responses, you can read these threads for some interesting responses:

http://www.city-data.com/forum/hawai...ing-there.html

http://www.city-data.com/forum/hawai...ig-island.html

[msherline]

What about Japan-made cars? Are they shipped directly here? If so, it seems they should cost less than on the mainland.

[PacificFlights]

Originally Posted by msherline

What about Japan-made cars? Are they shipped directly here? If so, it seems they should cost less than on the mainland.

Why?

If the ship was going from Japan to Hawaii and back (they don't because there isn't enough cars destioned for hawaii to fill the ship) the shipping cost would be cheaper. But the ship would normally be heading full to the mainland and would need to make a side trip to Hawaii. All the cost associated with that side trip would be passed along to the cars being unloaded in Hawaii. On a per car basis, its so much cheaper to pass cost evenly to several thousand cars being unloaded in a single place, that to only one thousand for that side trip.

There are shipments dedicated to hawaii which arrives on planned schedules coinsideing with new releases or inventory replenishments (not to mention the japan not usa distribution thing we don;t talk much about). However the cost to ship to Hawaii on thiose vehciles are charged at a slightly higher rate to the consumer because thiose cost to ship to the mainland and back to hawaii is artificially reduced. Its a balance act, charge $4.25 for something that cost $5.00 but also charge $4.25 for some others that cost $3.50.

[OpenD]

Originally Posted by msherline

What about Japan-made cars? Are they shipped directly here? If so, it seems they should cost less than on the mainland.

This is not easy for a lot of people to understand, but with a total population only about 1.375 million, Hawai'i is not a big enough market to justify direct shipments of entire cargo ships from foreign countries. So they go to major mainland ports instead. And under US law, specifically The Jones Act, goods shipped from those US ports to Hawai'i are only permitted on US owned ships. For all practical purposes, that means that goods bound for Hawai'i come in via Matson, Horizon, or Pasha.

And that is a key reason new cars in Hawai'i cost more than they do on the mainland.