Buying a Car in Cuba - A Veritable Odyssey

Buying a Car in Cuba: A Veritable Odyssey
September 4, 2013
FERNANDO RAVSBERG*

HAVANA TIMES — Since April, the Cuban government has ceased selling
automobiles to Cuban citizens authorized to purchase these, thus
eliminating the only mechanism through which Cubans could acquire a
modern used vehicle put out of circulation by the country's car rental
agencies.

Buying a car in Cuba entails complex, cumbersome and expensive
bureaucratic process. It is a veritable odyssey which begins with "The
Permit", a document issued by the government which authorizes the dealer
to sell the buyer a vehicle with 100 thousand (or more) kilometers of
mileage.

To obtain "The Permit", a Cuban must offer proof that he's had enough of
an income, in hard currency, to be able to afford the car and must
secure another letter from the bank which certifies this. However,
farmers, the self-employed and most medical doctors are not entitled to
purchase a car, even if they can offer proof of financial solvency.

To cover up all potential loopholes, authorities have devised a whole
series of different license plates and created watertight markets where,
for instance, a diplomat is not permitted to sell their car to a
journalist, the latter is forbidden from selling theirs to a foreign
firm and neither of them is authorized to sell to a Cuban.

Why Can't Cubans Buy Cars?

Thousands of Cubans – musicians, merchant navy officers, diplomats,
artists and others – who have "The Permit" are very worried over the
government's decision to stop selling cars. Their worries stem from the
fact the document has a 2-year bureaucratic half-life.

Singer-songwriter Erik Sanchez is among those worried. He tells me he
will have to start the whole process over because his Permit is "number
1088 and it's already a year and a bit old, expiring on February 1,
2014. They haven't been selling anything since April 27 and they're not
saying why."

It is hard for Sanchez to believe it, but he is among the privileged: he
already has the document. Daniel Silva tells us the story about how a
"prominent scientist" submitted the application a year ago and has not
yet received his "Permit", despite the fact that "the Ministry of
Transportation had to issue it within 60 working days."

No one seems to have an answer for art curator Jorge Gomez, who asks:
"Why can't Cubans go to a dealership and buy a car, be it new or
second-hand? Why do we need permits, letters, absurd and unnecessary
documents issued by bureaucrats who do own cars?"

Some Do, Some Don't

For decades, Cubans had access to cars only if they earned the privilege
through extraordinary merit or if the vehicle came with the job. The
sale of automobiles was forbidden and such transactions were carried out
as a verbal agreement, without officially changing any paperwork.

Raul Castro's government authorized the sale and purchase of cars by
Cubans, a measure which served to legalize the transactions which were
common during the years when this was prohibited. The government,
however, maintained all other restrictions and even introduced new ones.
This is such a sensitive issue that, two years ago, the Minister of
Transportation was dismissed from his post in connection with it.

Why a salsa musician should be entitled to "The Permit" and a farmer be
denied one, even when they can demonstrate they have a greater, legal
income, remains a mystery, as does the fact that foreigners residing on
the island can only purchase 2 vehicles during the time of their stay,
be that 1 month or 50 years.

The government also forbids direct transactions among foreigners,
journalists, Cuban or foreign firms, such that the same vehicle can be
sold at prices that can range from US $4,000 to $30,000, depending on
the market in which it is sold.

It's No Joke

The whole matter has been made light of by humorist Luis Silva, who
wrote an invitation to his Permit's birthday party. He didn't have to
put much effort into it: he merely described a surreal situation which
need not be exaggerated much to make Cubans laugh.

The delay has to do with the fact that there are thousands of "Permits"
and only 200 cars were being made available every week. In addition,
some people got ahead of the line with US $500 dollar tips, made to
dealership employees. Now, the problem has really been solved: no
vehicles are being sold to anyone.

Those who were fortunate enough to have been able to purchase a late
model used car before this and still have some money left over generally
"overhaul" the vehicle. With around US $4,000, you get a diesel engine
in good condition directly from a State company, and with a US $1,000
tip, you can get a brand-new engine, without having to wait in line for it.

Peugeot, Mercedes Benz and Fiat dealerships based in Cuba patiently
await the day in which all Cubans will be entitled to purchase their
vehicles. For the time being, they are only allowed to sell to State and
foreign companies and some "very special" individuals who have official
authorization.

Cuba's automotive market continues to be a chaotic place, plagued by
black market deals, illicit activities, corruption, injustice,
inequality among citizens and speculation – the results one would expect
from so many unexplained and inexplicable prohibitions.
—–
(*) An authorized HT translation of the original published in Spanish by
BBC Mundo.

Source: "Buying a Car in Cuba: A Veritable Odyssey" -
http://www.havanatimes.org/?p=98566