Cars: some models have already dropped in price due to the removal of the “luxury” tax

Two automotive companies – Toyota and nissan – sent to their network dealerships the new values ​​for the vehicle range. In the case of pickups, prices had already been updated since this segment does not pay the tax.

The official decision was missing to establish how much consumers would pay for cars (sedans, hatches and SUVs) with the new tax scheme, known as “luxury” tax.

The others automotive will make known their new prices starting this Monday or, taking into account that the end of the month is already days away, wait until February for a complete update.

Automotive companies send new price list

The measure was expected by factories, importers and dealerships because since the beginning of the month there were no official price lists due to the modifications that, as anticipated Ambit, were going to be introduced.

For this reason, plus the increase in 0km values ​​in December of between 40% and 60%, as a consequence of higher inflation and the devaluation of the peso, the market was semi-paralyzed.

Given this scenario, patents are falling 35% compared to last year and the sales that are made are made with the stock in dealerships since the factories were not billing the network.

“Luxury” tax: at what price do they start paying

According to the standard published yesterday, The tax base for the first scale, which today is $10,364,800, changes to $19,826,151 and will pay a rate of 20%, while the second scale rises from $19,135,000 to $36,602,126, with a rate of 35%.

This way, The cars will begin to be taxed now, in the first case, from approximately $28,200,000 in public price (today they pay from $14,700,000), while for the second case they will pay from $63,000,000 (today they pay from $32,000,000), as Ámbito had anticipated.

The public value of that limit varies depending on the margins applied by each automaker.

In practice, there is a rearrangement of the distorted prices that existed in the market.

The models that were “capped” not to pay taxes – just below $14,700,000 – are disclosing their value. Until now, either they were not sold or extra prices had to be paid.

In these cases, they record increases in official lists that replace markups.

Those who did pay and were in the range of $14,700,000 and $32,000,000 (many models were “capped” under the highest limit) are the ones who will feel the tax benefit.

This is the case of some examples of the two Japanese brands that lowered their value compared to December prices.

For example, the versions advance and exclusive of the nissan Versa They were “capped” at $31,000,000, while in the list that reached dealerships on Friday they now cost $20 and $26 million, which shows the impact of the tax reduction. The entry-level versions are between $16 and $18 million

In the case of Toyota, the range of Corolla Cross had a slight drop. The XLI version went from $23.1 million in December to $22.7, according to Friday’s listing. The XEI HEV version dropped from $27.8 million to $26.7 and the SEG HEV and GR Sport went from $30.4 million to 28.2 million. In this way, they were now “capped” below the new tax limit.

This is one of the most in-demand models on the market and has delivery delays that will normalize throughout the year.

These are some examples of what is happening in the market, but in the coming days cases of other automotive companies will be known.

Although the reduction is slight, this has to do with the high inflation that has been registered in recent months, If you were in an economy with low monthly inflation, that benefit would be felt, but by having 25% inflation per month, what is happening is that the tax advantage is neutralized by the increase that the 0km will have due to the higher cost of living .

That is, what can be expected is that some models will not increase compared to December prices because the lower tax offsets the increase applied.

The first scale of the tax pays a rate of 20% which implies, due to the method of calculation, a price increase of 25%.

In the models that already paid the second scale – which has a rate of 35%, but which impacts a public increase of 54% – they will now have room to increase since the next ceiling was more than $62,000,000.

The particularity that January will have is that the lists that are being known in the last few hours will have a brief validity since, starting in February, there will be new increases.