Whopping 50 New Cars Sold In Cuba In First Six Months Of 2014

Cuba recently relaxed its car purchase laws so that more new cars could invade its notoriously old car laden streets. And over the first six months of the year, a bunch of new cars were sold. Literally. 50 were sold. Wow.

The problem that Cuba faces is a whopping 400 percent increase in pricing from standard, so a car like a Kia Rio, that is about $13,000 in the USA is about $42,000 in Cuba.

Ok, expensive, but still doable, right? Not really. Cubans make about $20 a month. They'd need to work multiple lifetimes to just afford a Kia. Literally. Think about this, a Peugeot 508, a family sedan, is $262,000 in Cuba. A McLaren 650S is $265,000 in America. Please consider that for a minute.

So the fact that 50 cars were sold is kind of staggering, though it appears that most were used cars since the average transaction cost was less than $25,000. So Cuba might have opened up its car market to new cars, but it's done so in a way that doesn't encourage the sale of them at all. Looks like the free market hasn't invaded after all.