Cubans shocked at prices as foreign cars go on sale. State marking up prices 400% or more

[The Straight Story]

Cubans have reacted with shock after foreign-made cars went on sale for the first time since the 1959 revolution at what some termed "crazy" prices.

The state has a monopoly on new cars and is marking up prices 400% or more.

A Peugeot 508 costing £32,000 ($53,000) in the UK is listed at $262,000. State salaries average about $20 a month.

There was a good deal of consternation about the situation for those previously granted government permits to buy cars, who have now lost out.

Some artists, athletes or medics who worked overseas were given a permit to buy a car up to a value depending on their foreign currency earnings.

...

Many complain that the state released very few cars for sale in recent months, meaning that those with permit letters couldn't use them.

....

One of those outside the dealership, Suzanne, told the BBC: "The prices are crazy. No Cuban who works for the state can buy at that price. They have zero chance of getting a car."

http://www.bbc.co.uk/news/world-latin-america-25595674

[Renew Deal]

1. Unless I'm missing something, no Cuban could afford a car at the regular price either

[malaise]

2. What dollar are they using?

A basic Corolla in Jamaica is over $J3M

[Archae]

3. Why is the Cuban government doing this?

Sounds like corruption to me.

[House of Roberts]

4. Don't tell Republicans how cheap Cubans are paid.

They will want a trade deal with them.

[Nye Bevan]

5. There are so few non-capitalist countries in the world,

stories like this are always interesting to get an insight into the working of the economies of these countries.