Wikifleet Paraguay online: from Used to New cars
With a population of just over 7 million people, most of which who are in the metropolitan area of capital city Asunción (2.2 million), Paraguay is one of the smallest countries in South America.
Although inflation (2.7%), interest (4.75%) and unemployment (5.9%) are showing fairly good numbers, the country’s US$38.9 billion GDP (US$5,533 per capita) per year does make it a bit difficult for many citizens to buy new vehicles.
Of the 95,856 cars imported in 2018, 65.6% of them were used and a vast majority of them were more than 10 years old. These cars are repaired and remarketed in the country with the support of local auto parts providers known as "maquiladoras". As such , the used car market is huge in the country.
From Used to New cars
The Paraguay government is being pressured, however, by neighboring countries such as Brazil and Argentina to prohibit its used car import activities as they are unable to sell new cars in Paraguay.
For instance, as Brazil is a large buyer of auto parts from the country, the Brazilian government is threatening import tax on these auto parts unless Paraguay stops importing used cars.
One legislation currently being considered by the Paraguay government is a 10% tax on used cars being imported into the country.
Moreover, national development bank BNF has been offering a program known as "Vihículo 0km para la gente" (0km Vehicle for the people) and this has helped increase new car sales.
The new car market actually showed increases of some 30% per month in 2018 and the trend is expected to continue this year. For more info on Paraguay, visit the new Wikifleet Paraguay page.
Volkswagen Gol saw the largest uptick in sales in 2018, up 175% year-over-year (photo source: Volkswagen)