5 Jan 2014

Car prices leave Cubans in shock

2:32 pm on 5 January 2014

Cubans are in shock after foreign-made cars went on sale for the first time since the 1959 revolution.

The state still has a monopoly on new car sales and has set massive mark-ups.

A Peugeot 508 is listed at $US262,000. Peugeot's UK website puts prices from $US29,000.

State salaries in Cuba average about $US20 per month.

New and used foreign cars for sale at a car dealer in Havana on Friday.

New and used foreign cars for sale at a car dealer in Havana on Friday. Photo: AFP

The BBC reports that new car sales are the latest in a series of government reforms and a permit to buy new vehicles is now no longer required. However, only a minority will benefit.

An attendant at one car store in Havana told the BBC that six vehicles were sold by 2pm on Friday. He said the most expensive went for $US50,000.

Until new regulations in 2011, people could sell only cars built before the 1959 revolution.

For new cars, a government permit was needed - a privilege mainly bestowed on senior officials, top athletes and artists. Permits were often traded on the black market for large sums of cash.