Purchasing a vehicle in Cuba used to be extremely difficult, requiring a government permit usually reserved to doctors and diplomats who had returned to Cuba with money saved. In January that restriction was eliminated, but most Cubans are still finding it difficult to buy a car.
The majority of Cubans work for the government earning about $20 per month. However, even Cuba's more wealthy citizens are having trouble justifying the exorbitant prices the country's 11 car dealerships are charging for vehicles. Some new vehicles are being sold for more than five times their price in other countries, and used vehicles such as former government cars are still selling for more than what a new model would cost overseas.
Cubadebate spoke to a man named Julio outside a Cuban car dealership. He was taking pictures of the prices to show his family, and his comment is loosely translated as follows.
"The Peugeot 508, which is among the newest models in the world, is priced at 262,000 CUC, while in European countries it costs approximately 25,000 to 40,000 euros, depending on the version and features."
The Cuban convertible peso ot CUC has a value of $1, which means that a 2013 Peugeot 508 costs the equivalent of $262,000 in Cuba and $34,000 to $55,000 in Europe. Even lower-end cars aren't much better off. A 2011 Kia Rio is priced at $42,000 in Cuba, while in the U.S. it starts at $13,600.
Since the restriction was lifted in January, only 50 cars and 4 motorcycles have been sold, earning a total of just under $1.3 million. The Cuban government says that most of that money will be used to improve public transportation systems. Reactions from Cuban citizen have been mixed. Those hoping to buy a car are frustrated by the high prices, while those not interested in making a purchase see the initiative as a way to help save Cuba's public transportation by collecting money from people, particularly foreign residents, who can afford the high prices.
In addition to the cost of purchasing a vehicle, there are other factors dissuading Cubans from buying cars. Cuba's road infrastructure is poor, with similar gas prices to the U.S., many Cubans couldn't afford to drive everywhere anyway. With 11 million people in the country, pollution is also a concern. For the time being, it appears that cars will remain a luxury item in Cuba, in stark contrast to their ubiquitousness in the U.S.
