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The challenges of buying a car: understand what is making vehicles more expensive

Having your own dream car is a goal that is becoming increasingly difficult in Brazil. In the country, car prices are constantly rising, with no forecast for a decrease.

This goes for both new and used cars. This phenomenon is due to several factors, from the high taxation of dealerships to the very dream of common Brazilian consumption by the car.

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Reasons why cars are expensive

Understand why it is so expensive to own a vehicle in Brazil:

Import taxes

One of the reasons is that many of the most famous car brands are foreign, which increases the original factory price.

This can raise between 33% and 47% the cost of purchasing a car in Brazil, including IPI, ICMS, PIS and Cofins taxes, charged at each stage of production until the distribution of cars.

low competition

Brazilian automakers themselves do not face great competition in the transport market and, therefore, take the opportunity to make cars as expensive as possible, considering factors such as the exchange rate, inflation, interest and inputs.

Overvaluation of own car

In addition to Brazil being a country of continental size, road transport is the main mode throughout the territory. Compared to more economical and easy-to-manage public transport, the large amount of personal cars intensifies the need for costly investments in highways and organization of transits.

Furthermore, for historical and social reasons, having your own car is considered very well regarded by Brazilian society, being a symbol of status and social ascension. This overvaluation directly affects the prices of cars, which become more and more expensive over time.

Solution through popular cars

One way to try to lower the prices of cars today would be to try to launch some popular models in the market, with less built-in technologies, in order to distribute with prices minors.

However, this solution has not yet been put into practice, and prices run the risk of not going down much. Fleeing again from the Brazilian reality of not being able to pay much more than R$ 50,000 on a car of your own.

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