9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
Russian motorists have already become accustomed to sky-high prices for new cars and do not expect them to drop. However, there is a serious chance that the cars
It’s no secret that multi-million dollar price tags at car dealers are mainly caused by the weakness of the Russian currency. If the exchange rate between the ruble and the dollar is between 90 and 100, there is no need to talk about cheap foreign cars (even Chinese ones). However, there are a number of conditions for the domestic currency to grow, at least until March this year. Conspiracy theorists and political scientists expect that this event is a consequence of the authorities’ attempts to prepare the public welfare of Russians for Russia’s March presidential elections.
Economists prefer to focus on more mundane matters. For example, due to the fact that from January 9, 2024, the Ministry of Finance and the Central Bank have resumed financial operations to replenish and utilize the resources from the National Welfare Fund – through the sale of the country’s oil and gas revenues. Earlier it was reported that for this purpose the Ministry of Finance plans to sell foreign currency worth 11.8 billion rubles per day. Moreover, this level will be exceeded by another 0.8 billion per day in January.
Moreover, the authorities expected to receive 362 billion rubles in additional oil and gas revenues by December 2023. In reality they turned out to be many times smaller. The “budget rule” requires the Ministry of Finance to sell foreign currency for the amount of this difference. In order not to bore the reader any longer with all these macro-financial figures, let’s say that in January this year foreign money worth 40-50 billion rubles will be poured into the Russian currency market.
Similar sales volumes are expected in February. According to the expectations of financial analysts, this will lead to a strengthening of the ruble to 87 per dollar. Some people predict that an “American” will reach a level of 85 rubles.
Now let’s not forget that since last year, 170,000 to 200,000 unsold cars have accumulated in the warehouses of Russian dealers. Mostly “Chinese”. Loans are expensive now and it is strange to say the least to expect record inventories to be sold out now. Moreover, new batches of cars from China are currently going to Russia – previously ordered at a rate of “less than 100 rubles per dollar.” In the meantime, the latter has already begun to decline on the stock market: at the moment the price is almost 89 rubles.
In such a situation, car dealers have several reasons to quickly get rid of clogged warehouses. Firstly, simply because unsold vehicles are ‘frozen’ money. Secondly, a cheaper dollar gives the opportunity to buy cars for the future at a much more favorable ruble price.
And the most effective way to stimulate sales of old goods is a noticeable price reduction. Therefore, we can expect that car dealers will massively organize all kinds of sales and discounts in January-February this year. And motorists should take advantage of this moment. After all, no one knows for sure what exactly awaits the Russian economy after March 2024.
It’s no secret that multi-million dollar price tags at car dealers are mainly caused by the weakness of the Russian currency. If the exchange rate between the ruble and the dollar is between 90 and 100, there is no need to talk about cheap foreign cars (even Chinese ones). However, there are a number of conditions for the domestic currency to grow, at least until March this year. Conspiracy theorists and political scientists expect that this event is a consequence of the authorities’ attempts to prepare the public welfare of Russians for Russia’s March presidential elections.
Economists prefer to focus on more mundane matters. For example, due to the fact that from January 9, 2024, the Ministry of Finance and the Central Bank have resumed financial operations to replenish and utilize the resources from the National Welfare Fund – through the sale of the country’s oil and gas revenues. Earlier it was reported that for this purpose the Ministry of Finance plans to sell foreign currency worth 11.8 billion rubles per day. Moreover, this level will be exceeded by another 0.8 billion per day in January.
Moreover, the authorities expected to receive 362 billion rubles in additional oil and gas revenues by December 2023. In reality they turned out to be many times smaller. The “budget rule” requires the Ministry of Finance to sell foreign currency for the amount of this difference. In order not to bore the reader any longer with all these macro-financial figures, let’s say that in January this year foreign money worth 40-50 billion rubles will be poured into the Russian currency market.
Similar sales volumes are expected in February. According to the expectations of financial analysts, this will lead to a strengthening of the ruble to 87 per dollar. Some people predict that an “American” will reach a level of 85 rubles.
Now let’s not forget that since last year, 170,000 to 200,000 unsold cars have accumulated in the warehouses of Russian dealers. Mostly “Chinese”. Loans are expensive now and it is strange to say the least to expect record inventories to be sold out now. Moreover, new batches of cars from China are currently going to Russia – previously ordered at a rate of “less than 100 rubles per dollar.” In the meantime, the latter has already begun to decline on the stock market: at the moment the price is almost 89 rubles.
In such a situation, car dealers have several reasons to quickly get rid of clogged warehouses. Firstly, simply because unsold vehicles are ‘frozen’ money. Secondly, a cheaper dollar gives the opportunity to buy cars for the future at a much more favorable ruble price.
And the most effective way to stimulate sales of old goods is a noticeable price reduction. Therefore, we can expect that car dealers will massively organize all kinds of sales and discounts in January-February this year. And motorists should take advantage of this moment. After all, no one knows exactly what awaits the Russian economy after March 2024.
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.
