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realclearworld

It would take 111 years of work to buy a car in Cuba

Adriel Reyes in Martí News:

It would take 111 years of work to buy a car in Cuba

The hardest part for new Cuban buyers is justifying where the money comes from.

New and used cars for sale in Havana

The recent legalization of the sale of new and used cars by the Cuban government has been born with many ties around the neck. Here are some of them, but feel free to add others:

1. Prices. For a Cuban with an average salary (466 Cuban pesos, which is $19 a month), it will take about 111 years to acquire a vehicle selling for 25,000 CUC.

2. Justification. What business, remittance or salary in Cuba can support the purchase of a new Peugeot of nearly a quarter million CUC?

3. Taxes. Excessive government charges (about 50 percent above the actual value of the vehicle) exceed those charged by the world's large retailers by eight times (six percent). If as of this year, Cubans begin to pay taxes on the value of the property they own, how much will pay for these vehicles?

4. Funding. So far there is no other way to acquire new vehicles othe than to pay cash. There are no options to purchase on credit or other forms of payment.

5. Letters of authorization. It is a big question what will happen to those Cubans who went on missions with the dream of having your own car. Now the prices to acquire one of them is still beyond their means. Also, what will be those who paid a premium for letters of authorization to be able to purchase?

6. Replacement parts. With the exception of Peugeot and Geely, Cuba does not have an infrastructure capable of ensuring spare parts for most brands of cars they are selling.

7. Roadways. A large percent of the roads within Cuba (both national highway, the main road and others) are in fair to poor condition, which would accelerate the deterioration of these cars. Last year, the Section of Interests of the United States in Cuba warned all U.S. citizens or Cuban residents in the U.S. who visited the island to take safety precautions when driving to avoid problems during their stay.

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