How Are There So Many New Cars?

[semigoodlookin]

I am shopping around for a car and simply cannot bring myself to pay for a new car that isn't worth the money being asked in this country. Cars a very expensive here, so how am I seeing so many new vehicles on the road over the last year? These are typically entry level models (VW Trend, Peugeot 208, etc.), but neverthless, even those cars are expensive. I know most people in this country do not earn enought to buy these vehicles outright, so how there are so many?

The more I look the more I think I will continue with my feet, bus, and taxis. Even old bangers are selling for between 80,000 and 100,000 pesos. Madness.

 

[mmoon]

Cash, baby, cash!
Washing that income earned en negro right outta their hair!!
Used cars aren't that much cheaper than new cars in Argentina, so it's actually a good investment to boot!

 

[r2d2]

Many buy new cars via "Planes de Autos" or also sometimes also called "Planes de Ahorro". You start paying monthly rates and at some point you get your car. Even people with money earned in "negro" use those plans (to hide their undeclared income).

 

[camel]

I think cars hold their value better than cash. You typically sell your car for more pesos than you bought it for, because of inflation.

 

[Churchill]

Like almost everything here prices are insane. As an example the Renault Duster starts from 22,850 USD! Same car, same version in Chile starts from 14,200 USD. Falabella Argentina sell PS4 with Fifa 16 for 990 USD whilst over the border in Chile at Falabella they sell it for 630 USD. One day a correction WILL come!!!!

 

[nikad]

A lot of people bought new cars before the devaluation because it was much cheaper if they were going to do it next year anyway. People that had savings in usd to replace their cars made a good deal.

 

[r2d2]

Like almost everything here prices are insane. As an example the Renault Duster starts from 22,850 USD! Same car, same version in Chile starts from 14,200 USD. Falabella Argentina sell PS4 with Fifa 16 for 990 USD whilst over the border in Chile at Falabella they sell it for 630 USD. One day a correction WILL come!!!!

And in Santiago you get the PS4+FIFA16 for $490 USD ... in Paraguay $380. A lot of room for correction.

 

[camberiu]

Falabella Argentina sell PS4 with Fifa 16 for 990 USD whilst over the border in Chile at Falabella they sell it for 630 USD. One day a correction WILL come!!!!

Most of the price difference is not due to exorbitant profit margins, but due to overhead costs (import taxes, domestic taxes, bureaucracy, labor laws, low worker productivity, poor and expensive infrastructure, etc...) So all these costs are passed into the final product. So there is no "correction" to happen. Doing business in Argentina is expensive.

 

[Noesdeayer]

This time I'm in complete agreement with Camberiu.
The gov't and middle men have overblown costs in Argentina for decades.
Populist Peronist labor laws added to markedly low worker productivity have been a constant drawback to investors and consumers alike
It may be possible for this to begin to correct itself when,hopefully,the economy stabilizes and the system members realize that efficacy and productivity mean more real $$ to them
Only time and a true concerted effort will tell.I'm going to light a candle to the Virgin of Lujan on that though.

 

[Bajo_cero2]

Es la pesada herencia...