New Cuban Laws for Car Ownership: the Results
Last January, the Cuban government modified its policy concerning car sales: from now on, no need to wait for an official authorization to buy a car. The people can now simply go to a dealership and buy a new or used vehicle, just like in a capitalist country! Many observers were convinced that this would mark the end of the old vehicles that roam around Cuba, giving the country its unique look: old American iron, small Russian econoboxes, European antiques…
Six months after the new law became effective, we can see that the automotive landscape of Havana is not in danger of changing: the 11 state-owned dealerships have only managed to sell 50 cars and 4 motorcycles since January 2014! The reason for this fiasco is simple: the prices are so high, nobody can afford a new car. The average price of a transaction is $23,759, and the average worker makes $20 a week. Here is an example of the inflated prices: a Peugeot dealership in Havana wants $91,000 for a 2013 Peugeot 206 (a car worth 10,000 euros, or $14,500 here)!
Cubans who want a car still have to buy it used from someone who’s selling theirs. Since 2011, this practice is now legal. Before that, only cars that were in the country before the 1959 Cuban Revolution could be bought and sold by their owners.