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| Cubans shocked at prices as foreign cars go on sale | Cubans shocked at prices as foreign cars go on sale |
| (about 5 hours later) | |
| 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. | 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 car sales and has set massive mark-ups. | |
| A Peugeot 508 is listed at $262,000. Peugeot's UK website puts prices from $29,000. State salaries in Cuba average about $20 a month. | |
| Freeing up car sales is the latest in a series of reforms. A permit to buy new vehicles is now no longer required. | |
| However, only a minority will benefit. | However, only a minority will benefit. |
| The BBC's Sarah Rainsford, in Havana, says the stream of people at one used-car store in Havana's upmarket Miramar district were in for a shock. | The BBC's Sarah Rainsford, in Havana, says the stream of people at one used-car store in Havana's upmarket Miramar district were in for a shock. |
| She says the most commonly uttered phrases were "this is madness" and "what a lack of respect", referring to the government. | She says the most commonly uttered phrases were "this is madness" and "what a lack of respect", referring to the government. |
| 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." | 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." |
| Another, Antonio, said: "We're speechless, it's a big surprise. I don't know what the government's strategy is. Maybe this is just a test phase. But the prices are excessive." | Another, Antonio, said: "We're speechless, it's a big surprise. I don't know what the government's strategy is. Maybe this is just a test phase. But the prices are excessive." |
| The government argues profits will be placed in a special fund to develop public transport. | The government argues profits will be placed in a special fund to develop public transport. |
| Our correspondent says that the money is desperately needed, as there is a dire shortage of transport and what there is is often in a decrepit state. | Our correspondent says that the money is desperately needed, as there is a dire shortage of transport and what there is is often in a decrepit state. |
| But one Cuban resident, Daniel Rojas, asked: "At these prices, how many people can buy the cars? So where's the money to invest in public transport if no-one can buy them?" | But one Cuban resident, Daniel Rojas, asked: "At these prices, how many people can buy the cars? So where's the money to invest in public transport if no-one can buy them?" |
| Nonetheless, some Cubans do appear to have money to spend. | |
| An attendant at one car store in Havana told the BBC it had sold six vehicles by 14:00 on Friday. He said the most expensive went for $50,000. | |
| Until new regulations in 2011, people could only sell cars built before the 1959 revolution. | Until new regulations in 2011, people could only sell cars built before the 1959 revolution. |
| For new cars, people needed a much-sought government permit - a privilege mainly bestowed on senior officials, top athletes and artists. | For new cars, people needed a much-sought government permit - a privilege mainly bestowed on senior officials, top athletes and artists. |
| The permits were often traded on the black market for large sums of cash. | The permits were often traded on the black market for large sums of cash. |
| The latest move is part of a series of reforms driven by President Raul Castro aimed at updating the Cuban economic model. | The latest move is part of a series of reforms driven by President Raul Castro aimed at updating the Cuban economic model. |
| Raul Castro has championed limited free-market reforms since taking the reins of power from his brother Fidel in 2008. | Raul Castro has championed limited free-market reforms since taking the reins of power from his brother Fidel in 2008. |