How Are There So Many New Cars?

[Churchill]

So the correction must come in the way of more business friendly legislation to lower taxes or a devaluation of the peso. There must come a point when people wont or simply cant pay such high prices.

 

[camberiu]

So the correction must come in the way of more business friendly legislation to lower taxes....

Indeed. The only problem is that Argentines in general are so fundamentally against those concepts, that I don't see that happening anytime soon.
In the average Argentine mindset, profits are evil, business always exploit the workers, and legislation and bureaucratic red tape are never excessive and exists to "protect society". And the main problem with Argentina, in their view, is that there aren't enough laws yet.

Just look at the recent Uber debate on this forum as evidence.

 

[Rich One]

Es la pesada herencia...

Es todo culpa de Magneto y de la apropiadora Ernestina Herrera De Noble

 

[Noesdeayer]

Camberiu is once again point.on.
49% of Argentines apparently agree with the Kirchners on the absolute need of the presence of state protection in their economy.
It will take single digit inflation and a belief in their own currency before a remake of that mentality can even begin and that might not come for a few years if all goes according to Macri's plans.
Paternalism is fiercely engrained in the Argentine midset. Peron said, "Trabajo es un derecho.". " Work (a job ) is a right" and most believe that the state is correct in supplying and protecting jobs.
Of course,the initial falacy of that statement is seen in the failure of Soviet,Chinese and now Cuban communism to sucessfully do just that.But never mind,they believe it anyway.
As most of us know what is a right is the Right To Work and it is the function of a dynamic economy to provide jobs.
Pepe Mujica and Lula finally learned the truth of that statement.Maybe Cristina's worshipers will too.
.

 

[Ries]

the fact is, the economy is not that terrible, and its been getting better for the last ten years.
Certainly, not for everybody- but for a lot of people.

Every year I see more new cars, and more expensive cars. I was on the collectivo last year and we passed two Porsche Cayennes on one bus ride.
And its not just cars- argentines are also buying more and more computers, big screen tvs, fancy phones, fancy expensive clothes, shoes, jewelry, and all kinds of consumer goods.

Money is flowing.
Restaurants are full, there is a big new trend in 150 peso hamburgers and 100 peso bottles of craft beer.

 

[nlaruccia]

It's because you can buy new cars and pay in installments. Used cars are very expensive and you can't get a loan or pay in installments. The inflation rate is so high it makes used cars more expensive than new ones. I sold my used car three years after buying it and only lost $300 US.

 

[semigoodlookin]

the fact is, the economy is not that terrible, and its been getting better for the last ten years.
Certainly, not for everybody- but for a lot of people.

Every year I see more new cars, and more expensive cars.

How accurate is this? I agree I have seen more new cars (hence the thread) and they are being paid for somehow. However, the average wage in Argentina is not enough to suggest the "money is flowing" and people have loads of disposable income to throw around. That means most average Argentine's cannot buy a new car outright.

It's because you can buy new cars and pay in installments.

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)

 

[Dada]

I'm not saying I know much about economy in general. In fact, evidence is against me. However, it all seems to be perfectly in accordance with the super old law of the survival of the fittest. Which is far from any traditional justice criteria. You adapt, hence you survive. Eventually prosper. But it's all about your ability to adapt to the existing conditions, like it or not.

 

[nlaruccia]

How accurate is this? I agree I have seen more new cars (hence the thread) and they are being paid for somehow. However, the average wage in Argentina is not enough to suggest the "money is flowing" and people have loads of disposable income to throw around. That means most average Argentine's cannot buy a new car outright.



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)

I didnt say you got the car before paying all the installments, you have to make all the payments first. With a used car you must pay in full. Purchasing a car is a good investment in Argentina because of the inflation rate. As long as the inflation remains so high, I wouldn't consider Argentina's economy strong. Just because you see a few flashy cars doesn't mean that things are improving.

 

[Bajo_cero2]

Inflation might means many different things.
During the former administration, it was a way to finance the State.
During this one is a tool of re distribution of wealth.
None of them has a real relationship with how strong the economy is.
In fact, no inflation can be acchieve taking loans like they did during the 90's. Was the exonony strong? No, it was weaker than ever. In fact the debt rise 90 billion usd.