How Are There So Many New Cars?

Argentina needs to pass on some of its inflation to the western world to even things up.

Let's be honest the country is a joke when it comes to the economy and business. The mindset of 'free shit' is heavily ingrained in way too many minds - people actually believe the state is there to provide them with everything including a job for life. Until this mentality changes the country will remain economically stuffed.
 
You mean like finance? I don't think that is available here. The circle is you can pay in installment and get a car later, not get the car and pay later (installments)

That is actually what those "Planes de Auto" or "Planes de Ahorro" are (that they offer at every car dealer and in many malls - usually with signs like: "Ultimos Cupos" or"Solo hoy"). You start paying your monthly rates - at some point get your car - and then continue to pay your monthly rates (installments) while you already have the car. The time when you get your car depends among other things on luck (sortéo/random drawing) and/or how much advance payment you offer compared to the others in your plan ("licitación").
 
Conspicuous consumption is a not only a constant in Argentine life but a true necessity even in the lives of the 51% who voted for a change to a more market oriented economy.
A brand new car serves not only as a status symbol but also asn intelligent investment for resale.
There's a very good reason for the Argentine saying," Rio revuelto,ganancia de pescadores"----" A choppy river means great fishing for those in the know".
Those who have access to hard currency or other assets i.e.land,,"ladrillos"--houses or new cars have consistently come out on top here since at least the 1930s
Those who have always been screwed six ways of Sunday have constantly been the salaried employed. The peronachos take advantage of this need with populist state paternalism while they and their cronies rake in big bucks.One doesn't have to be an Einstein to figure it out.
 
conspicuous consumption is a constant in every country I have ever been in- and its certainly going strong in the USA, as well as Argentina, these days.

but you have to remember- "most" people dont buy new cars in any country.

last year in the USA, it was the best year ever for selling new cars- 17 million sold.
That translates to around 5% of the population buying a car.
And most new cars in the USA are kept for 3-5 years before being sold.
Which means that at most, 25% of the US population is buying the vast majority of cars.
and 50% of the US pop. will never be able to afford a new car.

Same thing in Argentina.
If 10% of the pop. is doing well enough to buy a new car every few years, it will SEEM like there are tons of new cars. And it will indeed be true that money is flowing, and the economy is improving. That doesnt meant that the other 80%, which probably will never buy a new car, is doing as well. But they, too, are doing better than they were ten years ago.

If you look at this chart, which, of course is just the best reflection I can find, not the absolute gospel truth, you can see that car sales this year are actually down, from an all time peak in 2013.
http://www.tradingeconomics.com/argentina/car-registrations

so, yes, 2013 was the best year for car sales in the history of the country.
this does mean, empirically, that things have been getting better, compared to, say, 1995, or 1965.
More people can afford cars now in Argentina than ever before.
Thats a fact, regardless of the fact that many people will never be able to afford even a used car.
Those two facts are not in opposition. The co-exist in truthyness, as Colbert would say.
 
That is actually what those "Planes de Auto" or "Planes de Ahorro" are (that they offer at every car dealer and in many malls - usually with signs like: "Ultimos Cupos" or"Solo hoy"). You start paying your monthly rates - at some point get your car - and then continue to pay your monthly rates (installments) while you already have the car. The time when you get your car depends among other things on luck (sortéo/random drawing) and/or how much advance payment you offer compared to the others in your plan ("licitación").

How badly do these rip you off compared to just handing over the cash to get a new car? And possibly the more important question is, what is the sort of average you have to wait to get "your" car?
 
Speaking of cars - any new models out that are worth their price.. Imports seem ridiculously expensive, anything local worth its weight for a family type car?
 
How badly do these rip you off compared to just handing over the cash to get a new car? And possibly the more important question is, what is the sort of average you have to wait to get "your" car?
As far as I understand there are usually two cars per month per group. One is via the "sortéo" (just like a lottery). So it is just based on luck. Best case scenario you could win the lottery the second month. Worst case the last month (for example after 84 months). The second car they give every month is via "licitación" - where you offer to pay x amount of pesos additionally kind of in advance. There might be some other requirements depending on the kind of plan etc. - but basically if you offer more than the other ones in your group you win the [background=rgb(252, 252, 252)]licitación[/background]. This is what I remember when I looked into it. Also some plans had an additional option called "Entrega Asegurada". Where they guarantee you the car after just a few of months if you pay xx % of the value of the car at that time.

I think the main additional cost compared to just buying a car in cash was the fee they charge for "administrating" the plan. If I remember it correctly it was somewhere in the 10% range (on top of the monthly rate). Plus there were some smaller fees like life insurance etc. But they also had special offers like giving discounts at the end when you always paid in time etc. So effectively it could be less. Also there are no interests per se. Your monthly rate is always based on the actual list price of the car.
 
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