Argentina's "anything-but-Libertarian exchange controls..." IMF meets in BsAs

[LuckyLuke]

The usual laws of supply and demand are suspended, in other words?

On the other hand, why is domestic production falling? When other agricultural domestic production has increased by 20% or so?

Yes and no...The wholsale price is determined by material input and labor costs. The retail price fluctuates with supply and demand.

Rising input and labor costs have put the wholesale price of beef above what the retail market can bear. Retailers will order less beef, because nobody is buying.

Wholesalers will in turn cut cattle heads, and layoff slaughterhouse staff.

The Argentine meat consumer doesn't determine the price of feed or fertilizer or labor costs or the quantity of rainfall.

 

[carride]

With the recent lowering of the import tariffs for mid-range and high-end automobiles, the brands have been publishing their February price sheets with many cars lower than last month. Not all. Monthly inflation is still in effect. Now some comments that the used car market will see lower prices. The downside for those who rely on the historically abnormal resale value of used cars in Argentina.

The specialist said that cars that currently did not pay any tax should also go down, given that cars in the middle segment will be cheaper. “If in the middle range a Toyota SW4 and a Volkswagen Taos go down in price and in the lowest range they do not go down, there may be many consumers who go from buying cars that were in the low range to those that were in the middle range. But that will depend on the strategies of each company” he explained.

Along the same lines, Bernini considered that the announcement of the tax reduction should also be transferred to used cars: “If the price of new cars goes down, the price of used cars will also have to go down because if not, those who were about to buy a used car will start buying a new car,”

Eliminación de impuestos en la compra de autos y motos: ¿qué anunció el gobierno y qué impacto tendrá en los precios?

El ministro de Economía, Luis Caputo (La Libertad Avanza), anunció en su cuenta de X que a partir de febrero se eliminarán los impuestos a la venta de autos y motos. “Esto va a impactar en...

chequeado-com.translate.goog

 

[Che1990]

With the recent lowering of the import tariffs for mid-range and high-end automobiles, the brands have been publishing their February price sheets with many cars lower than last month. Not all. Monthly inflation is still in effect. Now some comments that the used car market will see lower prices. The downside for those who rely on the historically abnormal resale value of used cars in Argentina.

Eliminación de impuestos en la compra de autos y motos: ¿qué anunció el gobierno y qué impacto tendrá en los precios?

El ministro de Economía, Luis Caputo (La Libertad Avanza), anunció en su cuenta de X que a partir de febrero se eliminarán los impuestos a la venta de autos y motos. “Esto va a impactar en...

chequeado-com.translate.goog

The impuesto PAÍS was scrapped and have imported goods come down in price? Hardly.

After all these reforms, I have lost the little hope I had left. The basic rules of capitalism, eg competition and supply and demand, just don’t seem to work here.

 

[LuckyLuke]

The impuesto PAÍS was scrapped and have imported goods come down in price? Hardly.

After all these reforms, I have lost the little hope I had left. The basic rules of capitalism, eg competition and supply and demand, just don’t seem to work here.

Don't despair Che. The economy is a highly complex system of upward and downward forces. One cannot take one measure (retail prices) in absence of all others forces.

The impuesto PAIS was scrapped because Milei had no other choice. Import/export businesses are being strangled by a combination of rising labor & material costs and falling profits (domestically because of cash strapped consumers and internationally because of the strong peso). Reducing regulation and wholesale taxes is an attempt to help alleviate their costs but it will probably do little to alleviate the average consumer who is being assaulted on all sides by rising costs due to the removal of utility subsidies, rent control and price caps that insulated a lot of their basic costs from inflationary pressures.

The assumption that falling demand = falling prices implies a glut of supply that due to internal financial forces must be liquidated at a loss. This is simply not the landscape for your typical argentine business which are accustomed to managing a more agile on-demand inventory with little fewer internal financial pressures.

 

[carride]

The impuesto PAÍS was scrapped and have imported goods come down in price? Hardly.

After all these reforms, I have lost the little hope I had left. The basic rules of capitalism, eg competition and supply and demand, just don’t seem to work here.

Yet for this very specific tax which had been been targeted directly to Automobiles and has now changed, the price of some cars really went down only a few days after the announcement. It is not theoretical. The manufacturers have published the prices and all the newspapers have reported the data. Just read the link I gave. Or visit your car dealer. Or search other news.

Toyota Argentina baja hasta 17% el precio de sus vehículos tras recorte de impuestos en el sector

Según pudo saber Bloomberg Línea, la automotriz también aplicará una rebaja en algunas versiones de Hilux, aunque no estén alcanzadas por el beneficio impositivo

www.bloomberglinea.com

 

[Jimbob]

We live in hope, looking to buy a used car but prices are just insane. Plus I read that clocking is a huge thing here. Does anyone know if milage here is registered? In the UK the milage is recorded when an MOT is carried out, is there anything like that here?

 

[carride]

The impuesto PAÍS was scrapped and have imported goods come down in price? Hardly.

After all these reforms, I have lost the little hope I had left. The basic rules of capitalism, eg competition and supply and demand, just don’t seem to work here.

Well right, time will tell if the expensive new cars which have become slightly cheaper, will cause a ripple affect to lower the price of used and simpler new cars.

 

[LuckyLuke]

We live in hope, looking to buy a used car but prices are just insane. Plus I read that clocking is a huge thing here. Does anyone know if milage here is registered? In the UK the milage is recorded when an MOT is carried out, is there anything like that here?

Any local mechanic worth their salt should be able to tell you whether it's possible to rollback the odometer on the make/model you are looking for and ways to verify it. Some newer cars for example use a digital cluster that is paired with the ECU. You could theoretically cheat it by replacing both the cluster and ECU from a totaled lower mileage car. Reddit Argentina has an active car thread too.