Dollar to 90 rubles: the car market froze in anticipation of a price jump
- June 28, 2023
- 0
Almost always, prices in the Russian car market depended directly on exchange rates. Formerly of the dollar and the euro, now also of the yuan. June’s jumps in
Almost always, prices in the Russian car market depended directly on exchange rates. Formerly of the dollar and the euro, now also of the yuan. June’s jumps in the ruble value of foreign money will again lead to a rise in car prices.
Another “tax period” has ended in Russia, when exporting companies are forced to sell foreign currency to pay ruble taxes to the budget. The exchange rate of the ruble immediately fell. Today, the ruble-dollar pair has reached 85 rubles for one “American”. And many analysts began to talk about the almost inevitable that will soon reach the level of 90 rubles per dollar. This is despite the fact that the Russian currency has “dipped” by 20% against the “evergreen” and by 26% against the euro since the start of the year.
Over the past 12 months, the dollar has grown by 58% against the ruble and the euro by 59%. Remember how banks and authorities began unceremoniously forcing citizens to get rid of these currencies at the end of the summer of 2022? By imposing restrictions on transactions with them, setting a fee for keeping foreign notes in bank accounts and applying other measures “to protect citizens’ savings against possible actions of hostile states”? In practice, as we can see, everything came down to the “swindle” of the Russians who owned the currency for 58-59% of their previous savings.
But this is a text. Now we see that the European and American currencies are growing strongly. The Russian authorities are very pleased with the current devaluation of the ruble, as it is an established method of formally offsetting the fall in oil and gas revenues on the budget. And according to some estimates, they have decreased by 75%. The depreciation of the ruble allows officials to present this figure in a less heartbreaking way.
Returning with our “sheep”, that is, cars, you need to keep in mind: now car dealers sell imported cars at a rate of about 76 rubles per dollar. The following lots go on the terms of 90 rubles/dollar. Or even higher – importers will try to lead the way, for the sake of insurance, by imposing even higher rates in contracts. Using simple arithmetic, you can be sure that with the advent of new batches of imported cars, selling prices for them can exceed current values by at least 20 percent.
– Liquid models (e.g. Chinese cars) imported through parallel imports have a “margin of price stability”. Because they are now sold at high prices. But there are also fewer “running” cars (especially European brands), with which it now makes sense to work only “on order”. You won’t make much money selling them. Nothing good comes from the growth of the exchange rate. The supply will become smaller, people’s purchasing power will decrease. It’s all pretty sad. The cars imported under the old rate are gradually being sold out, and the batches already going to Russia will be sold at completely different prices,” Sergey Pigolkin, head of the online auction of the CarClick auction, told AvtoVzglyad- portal on what is happening.
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Another “tax period” has ended in Russia, when exporting companies are forced to sell foreign currency to pay ruble taxes to the budget. The exchange rate of the ruble immediately fell. Today, the ruble-dollar pair has reached 85 rubles for one “American”. And many analysts began to talk about the almost inevitable that will soon reach the level of 90 rubles per dollar. This is despite the fact that the Russian currency has “dipped” by 20% against the “evergreen” and by 26% against the euro since the start of the year.
Over the past 12 months, the dollar has grown by 58% against the ruble and the euro by 59%. Remember how banks and authorities began unceremoniously forcing citizens to get rid of these currencies at the end of the summer of 2022? By imposing restrictions on transactions with them, setting a fee for keeping foreign notes in bank accounts and applying other measures “to protect citizens’ savings against possible actions of hostile states”? As we can see, in practice everything came down to the “swindle” of the Russians who owned the currency for 58-59% of their previous savings.
But this is a text. Now we see that the European and American currencies are growing strongly. The Russian authorities are very pleased with the current devaluation of the ruble, as it is an established method of formally offsetting the fall in oil and gas revenues on the budget. And according to some estimates, they have decreased by 75%. The depreciation of the ruble allows officials to present this figure in a less heartbreaking way.
Returning with our “sheep”, that is, cars, you need to keep in mind: now car dealers sell imported cars at a rate of about 76 rubles per dollar. The following lots go on the terms of 90 rubles/dollar. Or even higher – importers will try to lead the way, for the sake of insurance, by imposing even higher rates in contracts. Using simple arithmetic, you can be sure that with the advent of new batches of imported cars, selling prices for them can exceed current values by at least 20 percent.
– Liquid models (e.g. Chinese cars) imported through parallel imports have a “margin of price stability”. Because they are now sold at high prices. But there are also fewer “running” cars (especially European brands), with which it now makes sense to work only “on order”. You won’t make much money selling them. Nothing good comes from the growth of the exchange rate. The supply will become smaller, people’s purchasing power will decrease. It’s all pretty sad. The cars imported under the old rate are gradually being sold out, and the batches already going to Russia will be sold at completely different prices,” Sergey Pigolkin, head of the online auction of the CarClick auction, told AvtoVzglyad- portal on what is happening.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
