Business
Why Second-Hand Cars Are Luxury In Venezuela? A 1995 Car Prices At USD….
Venezuela: In most countries, used cars are cheaper than new vehicles. But in Venezuela, owning even an old, second-hand car is a luxury. Years of economic crisis, currency collapse, and strict policies have turned the used car market into an expensive and difficult space for ordinary citizens.
Venezuela has faced a prolonged economic crisis marked by hyperinflation and a sharp fall in the value of its currency, the bolívar. As prices rise rapidly, salaries have failed to keep pace. For many people, buying a car—new or used—is financially out of reach. Even basic used vehicles are often priced in US dollars, while most workers earn very little in local currency. As a result, a 1995 car prices between $2,200 and $4,400.
Restrictions on New Car Imports
New car sales in Venezuela have collapsed due to import restrictions, foreign exchange controls, and sanctions. Automakers either shut down operations or drastically reduced production. With very few new cars entering the market, demand has shifted heavily to used vehicles, pushing their prices higher.
Shortage of Spare Parts
Another major reason used cars are costly is the lack of spare parts. Many parts are imported, but shortages of foreign currency and sanctions have disrupted supply chains. As a result, maintaining a car is expensive and difficult. Vehicles that are still in good working condition become more valuable, even if they are decades old.
(Also Read: How To Convert A Manual Car To Automatic? Check Total Cost And Details)
Car Market
While Venezuela officially uses the bolívar, much of the used car market operates in US dollars. Sellers prefer dollars to protect themselves from inflation. This puts cars far beyond the reach of people who do not have access to foreign currency, making used cars a status symbol rather than a basic necessity.
Poor Public Transport
Public transport in many Venezuelan cities is unreliable due to fuel shortages, lack of maintenance, and reduced services. This increases the demand for private vehicles, which drives up used car prices.
Old Cars, High Prices
It is common to see cars from the 1980s or 1990s selling for prices that would seem unreasonable elsewhere. In Venezuela’s current situation, age matters less than functionality.
In short, a mix of economic collapse, limited supply, high maintenance costs, and dollar-based pricing has turned used cars into a luxury few Venezuelans can afford.
The UK must not “cut ourselves off” from trade opportunities in China despite security and business risks, the head of the Confederation for British Industry has warned.
CBI chief Rain Newton-Smith highlighted that British businesses see increased trade with Chinese firms as an opportunity to drive growth.
Her remarks came as business leaders were questioned by MPs on Parliament’s Business and Trade Select Committee regarding the UK’s economic relationship with China.
Last December, Prime Minister Sir Keir Starmer admitted China poses security threats to the UK but urged for greater business ties.
Ms Newton-Smith, chief executive of one of the UK’s largest business groups, was positive about the Government’s engagement with China.
“You can’t have a growth strategy without a strategy for China,” she said.
“China has the biggest contribution to global growth, is the third largest trading partner, and the world’s largest consumer market.
“The UK is second largest exporter of trade and services.
“We are mindful as all businesses are of security risks but it is really important that we have a strategy towards China.
“This Government has increased the economic engagement with China and including business within this does help us as a country.”
She added: “If we think about the future economy, there is a huge market in China and I think we mustn’t cut ourselves off from some of the opportunities there, even if in some areas there are difficult conversations and negotiations that need to be had.”
Peter Burnett, chief executive of the China-Britain Business Council, told the committee: “There are risks associated with technology advancement, AI, industrial development that they need to assess.
“Increasingly you will find them saying that they need to engage more in China to understand those risks and to develop some of the technologies along some of those risks themselves.”
Business
Trump says he’d be disappointed if Fed pick doesn’t cut rates; Warsh vows to be ‘independent actor’ – The Times of India
US President Donald Trump on Tuesday said he would be disappointed if his nominee for Federal Reserve chair, Kevin Warsh, does not cut interest rates right away after taking office if confirmed by the Senate. Trump, during an interview with CNBC’s “Squawk Box,” also said “we have to find out” about the construction costs of the new Federal Reserve building.Warsh, a former Federal Reserve official and financier, is currently facing Senate confirmation hearings where he has stressed his independence from political pressure.“The president never once asked me to commit to any particular interest rate decision, and nor would I agree to it if he had,” Kevin Warsh said under questioning by the Senate Banking Committee, as quoted by LA Times. “I will be an independent actor if confirmed as chair of the Federal Reserve.”Warsh told lawmakers that fighting inflation would be one of his main priorities if confirmed.“Congress tasked the Fed with the mission to ensure price stability, without excuse or equivocation, argument or anguish,” Warsh said. “Inflation is a choice, and the Fed must take responsibility for it.”The comments come as investors closely watch his confirmation hearing, with inflation remaining at 3.3% annually and global tensions, including the war in Iran pushing up gas prices, adding pressure on the economy. Higher inflation typically leads the Federal Reserve to keep interest rates steady or raise them rather than cut them, as rate changes affect mortgages, auto loans, and business borrowing.Democrats on the Senate Banking Committee accused Warsh of shifting his stance on interest rates over time, supporting higher rates under Democratic presidents and lower rates during Trump’s presidency.Warsh, if confirmed, would take over at a time when inflation pressures make it difficult for the Federal Reserve to cut rates, even as Trump continues to push for lower borrowing costs. Trump has repeatedly urged rate cuts and has long clashed with current Fed chair Jerome Powell over monetary policy. Powell has also been the subject of a Department of Justice criminal probe after refusing Trump’s requests for faster rate cuts. Trump told CNBC that he does not plan to pressure the Justice Department to end that probe.
The consultancy Teneo says airspace restrictions caused by the conflict have forced airlines to reroute many flights.
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