This is kind of old news, but we thought it would be interesting to re-post just to show how ridiculous car prices are in Brazil. With inflation soaring and the Brazilian Real (BRL) recent depreciation, the price gap tends to widen. Original article here.
|The VW Brasilia was sold throughout the Middle-East in the late 70s and early 80s and probably in other countries as well. In Saudi Arabia it was widely sold until the Japanese entered the market. I have heard that it was “the car” in Iraq during the 70s. A collector’s car now!.
China’s JAC Motors to Build Vehicle Plant in Brazil
From:Dow JonesJuly 03, 2009
China’s JAC Motors (Jianghuai Automobile Co., Ltd) ) is to build a vehicle plant at the Acu port complex in Rio de Janeiro State, the Rio state government said in a statement.
The announcement came shortly after confirmation Wednesday China’s Wuhan Iron & Steel Co. Ltd, or Wisco would build a steel mill at the greenfield site in the north of Rio de Janeiro State.
JAC Motors is China’s leading bus chassis manufacturer. It produces 450,000 vehicles a year including light trucks and multipurpose vehicles.
click for full article
The PT Cruiser in Brazil will cost about R$62,000 (US$ 38,000). It is imported, which increases its cost.
The same model in the USA will cost about US$ 17,000.
If you earn the monthly minimum wage in Brazil, R$ 415 (US$256), it will take you about 149 months to pay off the car, or 12.44 years.
This is the more appropriate method of determining the cost of living in Brazil…..purchasing power. How many hours, weeks, months will you have to work to buy X item compared to what it would presently cost you in your home country.
Despite their high cost, you do see a few of these PTs around.
A basic Fiat Palio 1.0, 4 doors, no options is listed at R32,370 (US$19,998). The Palio is the number one selling car in Brazil.
automobiles, Brazil, buying, buying a car in brazil, car, chevy taxis in rio, citroen, cost of cars in brazil, cost of living Brazil, fiat, ford, honda, kia motors, nissan, taxis rio, toyota, vw beetle
Let’s assume you have resolved your visa problem, learned Portuguese, and found a fantastic, high-paying job or opened a business which is doing well.
Now it is time to go out and buy that new car so you can drive to your favorite watering hole (boteco) on Friday evening or to the beach on the weekends…… in class.
The Brazilian auto industry has never had it so good. There is a 2-3 month waiting list on some models. The cars here are 1st world. The highways for the most part, 3rd world, the drivers….well..if you had four eyes like some weird insects in the Amazon it would be much safer driving here. But that is another blog story.
When you visit the sites below, look for the term "monte o seu / monte seu carro", which means build your own. Play around with this and it will give you a price.
LINKS: UPDATED: 2 Oct 09
Back In The Old Days:
When I arrived in Rio in December 64, the taxis were all 1941 (I think) Chevys. It was great riding in them…spacious, solid, and they moved out when needed. You felt like you were in a Chicago Gangster’s limo heading out for a night on the town back in the Prohibition Era.
Brazil’s auto industry (VW) was established in 1959 and the "Beetles" began rolling out, but they were not a lot of them on the streets in late 64. However, they dominated the market for many years. I had a friend (manager at the Banco do Brasil in Espírito Santo) who got a new 1965 Beetle, even though he didn’t know how to drive. But to buy it, he had to enter a "pool". Everyone in the pool put in X amount each month for X months (usually 24 as I recall) and each month there was a draw. In the worse case scenario you paid for 24 months and on the 24th month got your Beetle. The other option was you did a "lanço"; a bid offering the money above the monthly payment. If you bid was higher than the other "lancadores" bidders, you got your Beetle on the spot.
It was a subject of much discussion when my friend got his Beetle; what would he do with it since he didn’t know how to drive. Actually this system was also a form of investment. Cars were so difficult to get that people with money would enter the "pool" then sell their car as the market value on the street was more than what they paid through the "pool" system.