HAVANA, (Reuters) – Cubans awoke yesterday for the first time in half a century with the right to buy new and used vehicles from the state without special permission, but markups of 400 percent or more quickly dashed most people’s expectations.
At the state-run Peugeot dealership in Havana on Friday morning, where prices ranged from $91,000 for a 2013 model 206 to $262,000 for a 508, people walked away shaking their heads in disgust.
“I earn 600 Cuban pesos per month (approximately $30). That means in my whole life I can’t buy one of these. I am going to die before I can buy a new car,” Roberto Gonzales, a state driver, said, walking back to his 1950s Plymouth.
The average monthly wage in Cuba, where four out of five of the 5 million-strong labor force work for the state, is $20.
A European diplomat quipped, “I am slightly flabbergasted. With these prices, the old-time U.S. cars will not disappear fast from the streets.”
Under a reform two years ago, Cubans can now buy and sell used cars from each other, but until Friday had to request authorization from the government to purchase a new vehicle or second-hand one, usually a rental car, from state retailers.
