Baghdad Car Market Cools

[Barrett808]

Baghdad Car Market Cools
Higher fuel prices and import restrictions slow car purchases.
By Nasir Kadhim in Baghdad (ICR No. 172, 13-Apr-06)

The huge rise in car ownership since the fall of Saddam Hussein is under threat from rising vehicle and fuel prices.

Vehicle ownership grew rapidly after the United States-led Coalition Provisional Authority dropped import taxes in 2003 in an effort to promote a free market economy.

But recent government decisions to allow only cars built after 2003 to be imported and also to reduce fuel price subsidies appear to have halted the growth in sales.

"It was my mistake that I didn't buy a car a while ago when they were cheap and available. Now it's too hard to buy one," said Ahmed Hassan, a 38-year-old civil servant who makes 230 US dollars a month.

With 3,000 dollars in his pocket, Hassan stared at the dozens of expensive new models that are now beyond his reach.

(more)

http://www.iwpr.net/?p=icr&s=f&o=261040&apc_state=henh

[Atman]

1. I heard cars were EXPLODING over there!

Oh...sorry.

:evilgrin:

[TallahasseeGrannie]

3. I'm as sick as you are

all I could see was smoking cars cooling down.

T-Grannie

[JNelson6563]

6. Oh you bad boy!

Funny stuff.

[northzax]

2. how does a guy making $230/month

save up $3000 for a car in two years?

[Atman]

4. He moonlights as a suicide bomber

Hey, I got a million of 'em!

[saigon68]

5. The underground cash economy

The same way Tyrone the "Crack Dealer" buys a new Beamer.

[northzax]

8. indeed, but he's a 'civil servant'

imagine if your local civil servant was carrying around his annual salary in cash to buy a car, wouldn't you be a bit suspicious?

[saigon68]

9. Used to happen all the time in big city police departments

The cash given to the cop, to pay for the speeding ticket, would "Swiftly Disappear"

[maxsolomon]

10. how much cash disappeared during the 'coalition govt'?

there you go

[JohnnyRingo]

7. Who in their right mind would open a Baghdad dealership?

And for insurance, imagine the Gieco Gecco in a flak jacket. "good news from Iraq: I just saved a bunch of money on my car insurance".

Apparently every new car gets a free can of orange paint for the hood or fenders.
Somehow that kept you from being bombed until everyone else painted their cars too.

[Teaser]

11. Car bombs spike demand!

nt

[onager]

12. Bwah! Try the Egyptian car market.

Since that's where I'm living right now. (Alexandria, with occasional trips to Cairo. But not occasional enough to suit me. I hate Cairo.)

OK, the Subject is a tad misleading, since there is virtually no Egyptian car market. The guv'mint slaps a HUGE import tariff on cars. My Egyptian friends tell me as much as 300% of the car's price, in the case of American SUVs and such. BMWs and Mercedes are taxed somewhat less...not that it matters much, since the average wage here is comparable to Iraq and maybe even less.

One exception: Jeep products. They have an assembly plant in Cairo. Located, ironically, in an old Russian missile factory.

Used cars sell for a premium. Even a POS with 4 trips around the odometer will go for a good price, and the appearance doesn't matter at all.

Speaking of Russia...most of the urban taxicabs in Egypt are Russian Ladas, dating from the Breshnev Era. The windows are invariably stuck in either the full-up or full-down position. The floorboards are often rusted straight thru, which is actually a benefit. You can drop your feet and help the driver brake, Fred Flintstone style. Assuming he ever does brake, which is unlikely. You think New York cab drivers are aggressive? Pfft! They're wimps compared to the Egyptians, who play chicken and risk a head-on collision about every 30 nanoseconds.

But as compensation, the taxis have incredible interior decor. A big honking analog...VERY analog...taxi meter takes up most of the passenger knee space. It is festooned with Cyrillic letters and hasn't worked since the 1973 Yom Kippur War.

[brentspeak]

13. And this beauty used to be owned by a little old lady in Baghdad

It only got hit by an IED once - she took great care of it.

[stillcool]

14. Katrina cars?...