Police Get Armored <b>Vehicle</b> For Cheap - Business Insider |
- Police Get Armored <b>Vehicle</b> For Cheap - Business Insider
- Cubans Comment on <b>Car Prices</b> - Havana Times.org
- Cubans aghast at <b>car prices</b> as new law kicks in | Nation & World <b>...</b>
- Used car inflation remains low as new <b>car prices</b> climb
| Police Get Armored <b>Vehicle</b> For Cheap - Business Insider Posted: 14 Jan 2014 12:11 PM PST The West Lafayette Police Department has added to its ranks a Mine Resistant Ambush Protected Vehicle for about the same price as a used 1998 Cadillac sedan with almost 100,000 miles.
The purchase includes a new black paint job from the local DeFouw Chevrolet dealership and gun turret removal from the nearest Army National Guard outfit, reports Ron Wilkins of the Journal and Courier Online. Wilkins did the math: When the transition from U.S. military armored carrier to West Lafayette police armored special team carrier is finished, taxpayers will be on the hook for $4,065,Police Chief Jason Dombkowski said. That comes out to about 14 cents for each of the 29,525 people in West Lafayette. "That's a half-million-dollar piece of equipment," he said, noting that the 2008 truck has never been in combat, is in good shape and has 11,000 miles on it. "We've got $4,000 into it and very little recurring costs." Oddly, the truck, valued at $600,000, remains property of the U.S. Military's surplus, and can be recalled at any time, though no one expects that. It's "on permanent load," said Police Chief Jason Dombkowski. In other words, a gift — a generous habit the U.S. military has picked up since winding down the wars. The pennies on the dollar transfer occurs between a military either incapable or unwilling to store and maintain, to police departments who increasingly feel threatened by roaming shooters and even the potential for roadside bombs. These acquisitions have not gone unnoticed. "What we're doing here, and let's not kid about it, is we're building a domestic army and shrinking the military because the government is afraid of its own citizens," said former Marine colonel, Peter Martino, at a Concord, NH, town council meeting last year. "The last time 10 terrorists were in the same place at the same time was September 11th, and all these [armored] vehicles wouldn't have prevented it, nor would they have helped anything." |
| Cubans Comment on <b>Car Prices</b> - Havana Times.org Posted: 10 Jan 2014 04:24 AM PST The announced automobile prices have done away with the aspirations of Cubans who dreamed of owning a car. HAVANA TIMES — "Car prices have brought about what Yoani Sanchez, Guillermo Fariñas, the Ladies in White, Kennedy, Johnson, Nixon, Regan and the Bushes were unable to accomplish," Cuban journalist Javier Ortiz wrote in his blog. He added that "the price of the Peugeot 508 has led to a unanimous consensus" that could prove useful to those who "seek ways to bring the revolution down." No doubt, as Ortiz points out, never before had a reform met with so much condemnation. It is the one case in which having maintained a restriction would have spelled a less significant political cost. With all its shortcomings, the "letter" system at least offered tens of thousands of Cuban professionals who worked in brigades abroad the hope of purchasing a vehicle at affordable prices. "They apply market prices, but only when it's convenient for them. If we're going to follow the market for cars, we should also do it for salaries, and later multiply them by the same factor of 8," a renowned Cuban economist said to me. Art curator Abelardo Mena suggests we work towards a society "where solidarity and social justice prevail, but where consumption is permitted – the kind of consumption we've been denied over decades of a messianic monasticism." He insists that "underdevelopment and scarcity, not abundance, are responsible for vulgar consumerism and the phenomenon of the nouveaux riches." The Cubans Who Lost Their Letters While it is true that the bulk of the population doesn't care whether cars cost ten thousand or a million dollars (because they wouldn't be able to afford them either way), the measure does affect tens of thousands of Cuban medical doctors, intellectuals, diplomats, artists and journalists. Not even the Soviet Union's vast economic aid and French consultancy led to a good public transportation system in Cuba. On Facebook, Lourdes Llera asks herself what will become of "all Cubans who, with integrity and through great personal sacrifices, managed to obtain a letter authorizing them to purchase a car", cars which, in their majority, "didn't cost more than 5,000 CUC (US $ 5,500)." Duviesky Turiño Gomez left a comment in Cubadebate, saying that, now, "those of us who are working in an internationalist mission will need 4 or 5 continuous missions to be able to buy a second-hand car." On various social networks, a State journalist published calculations that estimate that, to purchase a car, a person would need to save 5,790 full salaries in the course of 482 years, concluding that "they went off the deep end with these prices – we're going to be the world's laughing stock." Those who passed this new law could well have made an exception for these Cubans, assigning the automobiles retired by rental agencies to them at the prices they had before January 3, 2014. The Cubans Who Hand Out the Letters A few months ago, art critic Jorge Gomez pointed out that those who make it difficult for Cubans to buy cars are "bureaucrats" that already own a vehicle. He's wrong. Many a time, they actually have two cars – their work car and personal vehicles. A doctor, angered over these developments, tells me that those who deny him the possibility of buying a car use State vehicles to go to the beach, take their kids to school or go shopping – practices that, in countries like El Salvador, citizens can denounce and the law punishes. The main argument in defense of the measure is that the government will promote public transportation. A Cuban intellectual replies that the argument would be valid "if those who approved those prices were willing to give up their cars and to start catching the bus like the rest of us." To avoid speculation, the government could publish the number of State vehicles used by politicians and officials, the amount of fuel they consume and how much money is spent in spare because, for, when all is said and done, those bills are paid by the work of Cuban citizens. Cuban Alchemists It comes as no surprise that reader comments left on Cuba's official web-site, Cubadebate, are almost all critical of car prices. What's curious is that the site's administrators published comments such as "long live the black market!" or "not even my great grandchildren will be able to own a car." There's even a comment by an Internet user which reads: "I'm interested in buying the horse that kicked the guy who set the car prices in the head." Another user mocks the new measures, saying that "with those prices, they'll be able to build the Havana Subway in less than a year!" The fact of the matter is that many Cubans doubt the creation of the public transportation fund will fix things, not after the country was unable to put together a minimally efficient bus system with millions in Soviet aid and French consultancy. In any event, they still have an opportunity to demonstrate that things will be different this time around. On Friday, a 2010 Hyundai (which costs roughly US $15,000 in the United States) was sold at the equivalent of US $120,000. With that money, they could, in theory, import a brand new bus. It remains to be seen if they'll let us know when it arrives and where it will operate. Now, the main challenge facing Cuba's Ministry of Transportation is akin to a work of alchemy: purchasing vehicles abroad using Cuban Convertible Pesos, a currency which, despite its name, is not convertible outside of Cuba. |
| Cubans aghast at <b>car prices</b> as new law kicks in | Nation & World <b>...</b> Posted: 04 Jan 2014 06:54 PM PST Originally published January 4, 2014 at 7:53 PM | Page modified January 5, 2014 at 9:48 PM HAVANA — Talk about sticker shock! Cubans are eagerly flocking to Havana car dealerships as a new law takes effect eliminating a special permit requirement that has greatly restricted vehicle ownership in the country. To their dismay on Friday, the first day the law was in force, they found sharply hiked prices, some of them light years beyond all but the most well-heeled islanders. A new Kia Rio hatchback that starts at $13,600 in the United States sells for $42,000 here, while a fresh-off-the-lot Peugeot 508 family car, the most luxurious of which lists for the equivalent of about $53,000 in the U.K., will set you back a cool $262,000. "Between all my family here in Cuba and over in Miami, we couldn't come up with that kind of money," said Gilbert Losada, a 28-year-old musical director. "We're going to wait and see if they lower the prices, which are really crazy. We're really disappointed." Cuba's Communist-run government traditionally has placed huge markups on retail goods and services paid for with hard currency, a policy that amounts to a tax on people who can afford such goods. The practice applies to everything from dried pasta, to household appliances, to Internet access. The astronomical sticker prices on the cars will likely mean fewer sales and the state leaving money on the table, noted Philip Peters, a longtime Cuba analyst and president of the Virginia-based Cuba Research Center. "There's a lot more money to be made at lower price points," Peters said. "It's a short-sighted tax-man's mentality. ... Paradoxically, they mark it up so much that they're not going to make any money. But that's the mentality." Havana legalized the sale of used cars by private individuals in 2011. But longstanding rules remained in place requiring Cubans to obtain a Transportation Ministry permit to purchase a new or used car from state-run dealerships. Permission took months or years to obtain, resulting in a black market in which car buyers would often quickly flip them for a big profit. The new law eliminates the need for a permit, but does not allow Cubans to import automobiles directly. The government retains its monopoly on that, and alone decides a vehicle's market value. Some exceptions will still exist allowing diplomatic missions and foreign entities to import vehicles. The Ferrari-like price schedules for even mundane new cars are a signal that automotive scarcity and high demand will likely continue to reign in Cuba, which is famous for the 1950s American cars that still rumble through the streets long after they became museum pieces elsewhere. Because replacing a car is so difficult, those lucky enough to own a finned Detroit classic or a boxy Russian import go to great lengths to keep them on the road as long as possible, swapping in makeshift parts and resorting to creative soldering. At a used car dealership in western Havana on Friday, there were a few relatively affordable options. A 1997 BMW was the cheapest vehicle and the first to sell shortly after the dealership opened at 8 a.m. It went for $14,457 to a young man who declined to talk to reporters, so it wasn't known many miles it had previously logged. But even many of the used cars had eye-popping asking prices, such as a 2009 Hyundai minivan that listed for $110,000. "Let's see if a revolutionary worker who lives honorably on his salary can come and buy a car at these prices," said Guillermo Flores, a 27-year-old computer engineer. "This is a joke on the people." In the past, permit holders typically bought used vehicles, often former rentals with high odometer readings that went for around $5,000-$8,000. New imports generally sold at about a 100 percent markup before. There was no explanation for the sudden, across-the-board spike in prices. Most Cubans still earn government salaries that average around $20 a month, though some make significantly more as musicians, artists, employees of foreign companies and diplomats and doctors sent on foreign missions. Many others get financial support from relatives overseas. But some who had managed to scrape together some savings said they're now priced out of the market. "With these prices ... those who will be able to buy are the privileged, or the bandits," said Alfredo Boue, a 25-year-old cook. "I think the bandits are not the ones (stealing) in the streets, but the people who set these prices." People were aghast and angry as they perused a list of prices posted outside the dealership. Some said it felt like something out of science fiction. One woman asked sarcastically if there were any bicycles, because surely that would be the only thing she could afford. Priority was given to people who had obtained a permit under the old system, but Antonio Diaz, a 66-year-old retiree who came expecting to pay $5,000, left empty-handed and disgusted. "What am I going to do with this letter?" he said, brandishing his now-useless permit. "I can't buy anything. I don't have the money. That was supposed to be the car for my old age, which I was going to buy after a lifetime of work." "I'll have to resign myself to living without a car," Diaz said, shaking his head. ___ Associated Press writer Peter Orsi in Havana contributed. |
| Used car inflation remains low as new <b>car prices</b> climb Posted: 16 Jan 2014 05:41 AM PST © Reuse this The weakening rand, particularly in the latter half of 2013, contributed to new car inflation rising to 5.65% in the fourth quarter of 2013 – its highest level since March 2010, while the rate of used vehicle deflation continued to slow throughout the quarter, TransUnion reported in its latest Vehicle Pricing Index (VPI) on Thursday. According to the credit information management firm, used vehicle inflation recovered slightly to -1.72%, compared with the -3.09% posted for the third quarter of 2013. "However, it still ended the year in negative territory, with prices 2.18% lower than they had been in the fourth quarter of 2012," the company noted. The VPI further showed that new car prices continued to trend upwards throughout the fourth quarter, with new car inflation increasing from 4.14% in the third quarter. Vehicle risk intelligence company TransUnion Auto Information Solutions calculated the quarterly VPI from data it received on monthly sales returns from thousands of dealers throughout the country, as well as from vehicle financing registrations from all major banks and vehicle finance houses. TransUnion Auto business development director Nick Tuttelberg said the latest VPI indicated that "the tide appeared to be turning" for the used car market, but said this did not mean that the used market was "out of the woods yet". "While there was some recovery for used vehicles towards the end of the quarter, this could be attributed to issues such as limited stock supply on certain models, as well as the widening inflation gap between new and used vehicles," he said. "Overall, the economy is still under pressure. The rand experienced one of its worst years against the dollar in 2013, seriously affecting the cost of imports, while gross domestic product expanded only by an annualised 0.7% in the third quarter. This was the lowest growth rate in the last four years, as the strikes in the automotive industry dragged down manufacturing," he commented. Tuttelberg further noted that there was still general credit demand in the market, with "many" vehicle finance houses experiencing similar levels of demand in November 2013 as that experienced in November 2012. "We don't expect credit demand to stay at those levels after January this year. These levels were largely owing to consumers remaining highly indebted, as well as ongoing inflationary pressure, credit amnesty concerns and extended finance periods on vehicles, which were effectively pushing out vehicle replacement cycles," he held. "Given the increasing price of new cars, this trend is unlikely to continue for much longer. The new market is being supported by manufacturers' incentives and trade-in assistance. The question remains how long manufacturers can continue this intervention in the face of ongoing pressure on the rand," Tuttelberg concluded. Edited by: Chanel de Bruyn © Reuse this Comment Guidelines |
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