Find out why the zero car is so expensive

Check out 5 reasons for the increase in zero car values.

Estimated reading time: 3 minutes

The value of zero cars is scaring consumers, as the cheapest popular cars in Brazil are costing an average of R$ 60 thousand. A zero Fiat Uno Mille, for example, cost R$ 23,204.00 in 2009, a big difference, even considering the increase in the minimum wage. Here are five reasons for the increase.

more expensive taxes

For each new vehicle sold, 31% of its value is allocated to the government, as four taxes are charged on its price, three of which are federal:

  • Tax on Industrialized Products (IPI);
  • Social Integration Program (PIS);
  • Contribution to Social Security Financing (COFINS);
  • And the state tax: Tax on the Circulation of Goods and Services (ICMS).

greater demand

As much as Brazilians’ income has fallen, there has been a relative increase in demand for new cars. This is due to the fact that the pandemic has not affected all social classes equally and that classes A and B still have good purchasing power.

Technology

Before, standard items such as air conditioning, electric windows and power steering were optional, however, now they all include this type of comfort. Popular cars are even being equipped with Global Positioning System (GPS) and automatic transmission, which was previously only part of luxury cars.

most expensive credit

With the increase in the rate of the Special Custody Settlement System (Selic), which stands at 13.25% per year, credit is more expensive. In this way, Brazilians who depend on financing to buy a vehicle have more difficulty. The production chain of the automobile sector in the country has also found it difficult to obtain credit.

production costs

With the economic downturn since 2020, due to the pandemic, commodities have become scarcer, thus becoming more expensive. Therefore, cars are more expensive all over the world.

In Brazil, in addition to the impact on the price of commodities on the price of new cars, there is also an impact on the exchange rate, as the real is devalued against the dollar, which makes it more expensive to buy a brand new car.

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Image: digital-lumen / Shutterstock.com

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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