Expensive Used Cars
Most galling to Cubans: the prices set for used cars — typically decommissioned from state-owned rental fleets — that have taken a torch to the Kelley Blue Book.
A tiny 2011 Kia Picanto? $43,000.
A 2009 Hyundai Santa Fe SUV? $90,000.
For years, Cuba has been importing Korean Hyundais and Kias, or French Peugeots and Renaults, then turning a huge profit by renting them to tourists.
The cars are always in high demand despite rental rates that are often double what they would be in the rest of the world. And by offering something tourists wanted, the rental cars have been key hard currency generators for the government.
Once the cars accumulate high miles and wear and tear, the government typically sold them to Cuban professionals at rates closer to the market value.
But authorization to purchase such a vehicle was highly coveted and used as a reward for Cuban doctors, for instance, after completing years of service on a so-called international mission in Venezuela, Angola or one of the other countries where Cuba sends medical professionals.
Thus, a worn-out rental car also satisfied a political goal, by keeping Cuban professionals motivated to go abroad.
Why the government would now price used vehicles at such exaggerated levels is beyond comprehension, said Cuban economist Juan Triana. “I can’t see the reasoning,” he said.
Others have surmised that the car prices are an early indicator of the government’s plans to devalue the CUC before its elimination this year in favor of the island’s other currency, the Cuban peso.
And apparently there are some Cubans willing to pay otherwise insane prices to unload their stockpiled CUCs.
Employees at one state used car lot told the BBC last Friday that six vehicles were sold on the first day, including one for $50,000.
Article Appeared @http://www.npr.org/blogs/parallels/2014/01/09/261111796/cuba-land-of-the-250-000-family-sedan