Cuban New-Car Sales Total 50 During First Half Of 2014
Last year, the Cuban government finally made it legal for its citizens to freely buy new vehicles for the first time since Fidel Castro sent Fulgencio Batista packing in 1959. The people rejoiced right up until they saw the prices on the showroom floor this January, family sedans marked up 400 percent or above as if they were Ferraris and Bugattis.
Reuters reports that because of the markup, only 50 cars and four motorcycles left the 11 nationalized lots in Cuba during the first six months of 2014, netting a total of $1.28 million USD in new car sales. The high prices also affect foreign businesses and potential investors, all none too thrilled to seek government permission to import their own vehicles without going through the national showroom floor.
In one example cited by the news organization, a Havana Peugeot dealership wanted $91,000 for a 2013 206, and $262,000 for a 506 of similar vintage, which makes the government’s goal of investing 75 percent of all new-car sales into public transportation easier said than done; most state workers make the equivalent of $20 USD per month.
Meanwhile, used car sales are doing much better, with the average price for a used vehicle — including motorcycles — holding at $23,759. Most of the used stock originates from retired rental car fleets.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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I'm sure the big wig communist party leaders and secret service employees got their new cars without having to go to the dealership. So cuba may actually have imported more then 50 cars. And Cubans aren't ready yet to throw their government into the sea? i really believe if the US ended the embargo and goods and people could freely travel to Cuba (busting all the myths and lies the communist government tells them), the system would implode within a week. The embargo is the only reason the communists are still in power. they need an outside enemy to survive and blame everything on.
>>In one example cited by the news organization, a Havana Peugeot dealership wanted $91,000 for a 2013 206, and $262,000 for a 506 of similar vintage, which makes the government’s goal of investing 75 percent of all new-car sales into public transportation easier said than done; most state workers make the equivalent of $20 USD per month.
I bet they can't wait until the embargo is eventually over so that they can go out and buy nice newly restored 1958 Chevrolet Bel Airs or Biscaynes to replace their old ones.
I'm seeing comments here making arguments about Communism and the low real wages of workers. I would point out that Cuba is an agrarian state, they barely qualify to have light industrial output and when the US decided to put the embargo on them collapsed their economy which has never recovered. In general, if Cuba had their embargo lifted and the free export of agrarian goods (mainly sugar) was started once more their GDP & real wages would climb significantly, still pale in comparison to the US but be on par with other agrarian Caribbean nations. Though that number in itself vastly differs between US protectorates & Territories and autonomous and independent regions.