Luxury cars in Buenos Aires

[Dougie]

Ho

how can the top 5 percent afford a luxury car or house here on 400k a month?

By dating and marrying rich gringos

 

[jblaze5779]

I'm sure that's declared income. I would say most folks (esp rich folks) don't report all those pesos.

 

[Fiscal]

By dating and marrying rich gringos

I don't think you can reasonably afford a Porsche on only $4k a month.

 

[antipodean]

I'm sure that's declared income. I would say most folks (esp rich folks) don't report all those pesos.

Don’t be so sure. To be really wealthy in this country you need to be en blanco if you want any hope of ever spending it, accessing financing, moving money or keeping your business alive since the system exists to catch and cancel you if not.
At least whatever is made and spent inside Argentina although it’s increasingly hard to hide undeclared income, assets and spend offshore.
But then again that’s why really good lawyers and accountants here are so expensive because they keep you en-Blanco.

I would go as far as saying that the truly wealthy in Argentina are the most tax compliant group in the country. Not saying perfect, but most compliant. (Eg. The lower classes just don’t pay tax, the middle classes live or supplement their income from little things that are/ were easier to hide like rental properties and income or a sale not put through the til, while the upper classes get smart and can afford to spend a fortune on minimizing their burden legally etc.)

Inside that 5% earning on average 400k, you have the A and B class earning well above that average - let’s say 50% of that. That’s like 1.1m-ish people living lifestyles comparable to other high earners or high net worthers anywhere else in the world. I’d say that adds up to the scale of the market for fancy cars and real estate we actually see here.

On a side note, while you may not afford a Porsche on around $4k per month, well without financing, you will qualify for some of the most premium credit cards and banking packages like HSBC Premier Black ($700k per month requisite) on the market before you get into the realms of private banking. Given how few customers of the total banking customers have access to these products gives you an idea of how “exclusive” $4k per month in Argentina actually is.

 

[Greg S]

Hottest Job in Argentina: Helping the 1% Hide Their Cash Abroad

Franco Reinson has never been busier, fielding calls and holding meetings in his office in downtown Buenos Aires. The wealth adviser can thank President Alberto Fernandez, who is making rich Argentines very nervous.

www.bloomberg.com

Fairly easily done too. IF you have wisely minimized your paper trail. Cash cash cash.

 

[jblaze5779]

I just can't see the drive to own these cars in Argentina. If you're on the wealth level to own these cars it would be best to keep a low profile in Argentina and buy the car for half the price in Europe and not worry about drawing bad attention to yourself.

 

[Ries]

The people who really WANT to own big new luxury cars actually want to attract attention. When you see a Porsche 911 cabriolet driving down Libertador, the guy driving it is not worried about drawing bad attention.
And if they live in Argentina, they buy cars in Argentina- what could would a car in Europe do them?

The cars I really enjoy seeing are not expensive 4 door Mercedes sedans- its the rare and strange vintage cars that ended up in Argentina, that you rarely see elsewhere.

In the late 50s and early 60s, for example, Argentina was a very big market for microcars- BMW Isettas, Heinkels, Mescherschmitts, GoGo mobiles, and more. And a surprising amount of them still exist. There are even a couple of specialized mechanics shops that only work on these cars. I was in one, with a friend who has an Isetta, and the biggest car they had ever worked on was a BMW 700cc convertible from the early 60s.
These cars draw a lot of attention, but arent very expensive at all. Everybody loves an Isetta- I have ridden with my friend in it, and busses and huge trucks get out of the way, honk and wave, big smiles everywhere.

 

[jblaze5779]

I don't know I guess if I was a rich argentine I would have just moved by now. Maybe I don't see the appeal.

 

[Ries]

For the money, rich people can live very well in Argentina. Gigantic apartments in Recoleta are a tiny fraction of a similar place in Paris or NYC. Beach Houses in Uruguay, Estancias in the Provincia- the lifestyle is hard to match in more "civilized" places for ten times the budget. Most of the really rich people in Argentina come from families that have been rich a long time, and they are pretty rooted here. They also own things that need feeding and minding, like the telephone companies, agribusiness, vinyards, the newspapers and TV stations, the electrical utilities, and so on.

Mainly, though, Argentines LIKE Argentina. Even the wealthy ones in the USA dream about moving back someday.

 

[antipodean]

I don't know I guess if I was a rich argentine I would have just moved by now. Maybe I don't see the appeal.

If you’re a rich Argentine, then chances are Argentina (in all its glory) is your cash cow.
You move away and someone else will take whats yours. If you’re on to a good thing, then you can afford to look past the bad as is the truth anywhere in the world.

Of course those ready to give up or sell up, sit back and relax or those who transform their business to depend more on international markets do frequently move away.