Why do old cars in Venezuela cost as much as new ones? Years of halted imports, sky-high tariffs, and economic collapse have left drivers stuck between aging Toyotas and pricey Chinese SUVs in a distorted market.
00:01Why are used car prices in Venezuela so absurdly high?
00:07Which part of the population wants a new car? The whole country.
00:14Why is there such a shortage?
00:18Venezuela is still going through a process of economic recovery.
00:25One that's also impacting the car market.
00:30Venezuela was once a wealthy country.
00:35Thanks to its vast oil reserves, it ranked among the most prosperous nations in Latin America.
00:44But today Venezuela is battling one of the world's worst economic crises.
00:51It began under President Hugo Chavez and has grown steadily worse under his successor Nicolas Maduro.
01:00Signs of the country's economic decline can be seen everywhere.
01:04At gas stations, long lines are the norm.
01:09Oil production has fallen from nearly 2.7 million barrels per day in 2013 to under 1 million in 2025.
01:17Hyperinflation and shortages of goods and services have plunged the country into a complex humanitarian emergency.
01:26With public transport in poor condition, those who can afford it by their own vehicles.
01:32But in the Venezuelan car market, that means doing a lot of homework.
01:41Weighing new models from emerging markets against older vehicles that often cost just as much as a brand new one.
01:49What's better, buying a 12- or 14-year-old Toyota, knowing the quality they have, or taking a chance on a new car from a dealership I'm not familiar with?
02:04The problem with used cars really comes down to the price and what folks think their vehicle is worth.
02:16Influencer and mechanic Reni Rangel rose to fame with his social media series, Cafecito.
02:23There, he humorously exposes Venezuela's inflated car prices, helps consumers make smart choices, and even offers cars for sale himself.
02:55First, you need to understand that starting in 2007, domestic car manufacturing and car imports ground to a halt.
03:02The last batches arrived in 2012, 2013, leading to a complete stagnation in car imports until 2018, 2019, when they started to pick up again.
03:17We're talking about a period of 12 or 13 years where owners had no choice but to maintain their used cars.
03:23With a fleet of 4 million vehicles, no imports and cars breaking down, the number of roadworthy cars kept shrinking.
03:36This caused the cars that were well maintained to retain or increase in value because there were no new cars available.
03:43Luis is looking for a car. A used vehicle that's mechanically reliable, in good condition, and costs no more than 5,500 dollars.
03:57In a market where even old cars are expensive, that's a real challenge.
04:06In Venezuela, used cars aren't priced according to their real value, but based on the seller's needs.
04:14That drives up prices in ways that don't make sense for a used vehicle and creates an inflation of used car prices in this country.
04:25The problem with used cars really comes down to the price and what folks think their vehicle is worth.
04:33They sell based on their own needs and not on the car's actual value. The car might be worth 1,000 bucks, but as we discussed, if a person needs 6,000, then that's what it's worth, because that's what they need to solve their problem.
04:49Isac Delgado, a young Venezuelan entrepreneur, is looking to upgrade his 2008 car. Used or new? That's the question.
05:02He starts by going to dealerships selling Chinese brands like MG, once a British company, which are trying to establish themselves in the Venezuelan market.
05:10They're competing with used cars over a decade old, which, despite their age, are priced the same as brand new Asian models.
05:20I'm looking for a car because mine is already really old. I have a 2008 Toyota Yaris, and it's time for a change.
05:2915 years of an obsolete fleet, unfortunately. We all have cars from 2005, 2007, 2009, and it's 2025 now. It's hard to believe, but sometimes a 2015 model is considered new here. Anywhere else in the world, it would be headed to the scrapyard.
05:49Since 2019, the automotive sector in Venezuela has been experiencing a slow revival. Authorized dealers of international brands are well aware of the strong competition posed by the used car market.
06:05In an economy plagued by hyperinflation, MG was one of the first brands to offer financing to customers.
06:12Still, would-be buyers remain skeptical. Like Isaac, many are wary of the terms on offer.
06:24If we were in a more normal economy, the financing offered by these dealerships would be reasonable. But given the reality of this country, it's not an option for everyone. Not everyone can afford the high down payment needed to buy these vehicles.
06:39Monthly payments of $500 or $1,000 are increasingly out of reach for Venezuela's middle and upper middle classes, which are shrinking by the day.
06:52Only a few dealers in Venezuela sell new cars. Among them, Ricardo Marquez of the Velosa dealership network in the capital Caracas.
07:10On a test drive in a new Suzuki, the difference is clear. Most vehicles on the road here are between 10 and 30 years old.
07:1780% of the vehicles are quite old. There's an Aveo. They date from 2000 to 2012. This is a car from 1994. Over there you have a Terrios from 2005. On the right we have a 2004 Honda Accord.
07:32In a way, this government has loosened the regulations. Before you could only import new cars. Now you can import cars up to five years old.
07:43But so-called nationalization costs are incurred when importing vehicles into Venezuela. These include customs duties, value-added tax, registration and administrative fees, as well as long-standing protective levies.
07:59They date back to a time when Venezuela still had its own car production that was meant to be shielded.
08:06That's why prices for imported vehicles are as much as 60 to 70% above the international average, even for cars that are decades old.
08:16Nationalization taxes were always there to protect Venezuela's automotive industry. There's no longer an auto industry and somehow the people are still paying the price.
08:28Izaq continues his search for a new car. His next step is to get an appraisal of his current vehicle. That's why he's come to a used car dealership for an inspection to find out how much his car is worth in its current condition.
08:48Well, as it stands now, it needs new shock absorbers. The old ones are kind of bent. I just put in a new compressor, and then there are the brakes, which I need to fix.
09:07A thorough inspection reveals that the 17-year-old Toyota Yaris does have some mechanical issues that drag down the price.
09:14The sale price is 7,000 or 8,000. We'll buy it for 6,000 to have that margin, to invest in the car and always retain a profit.
09:25I was hoping for a bit more, but I think I'll go for it. With what I get from selling this car, plus what I already have, I can reach the 15,000 I need for the down payment on the SUV I've been looking at. So I think it'll work out.
09:38Isaac has his eye on a 2008 Toyota 4Runner. Old, but in good shape.
09:51How much?
09:52How much?
09:53This one costs $23,500, cheap for the market. These can sell for $26,000 or $27,000 because it's the most in-demand SUV brand in Venezuela and spare parts are available.
10:06I like it, man. But as I told you, we've been to the official dealerships and I'm talking about a 2024 SUV costing $23,000, $24,000, $25,000. It's a 2008, man.
10:18It's true. People became very addicted or very trusting. People trusted the brand and that's given the brand an extremely high value here in this country.
10:28Meanwhile, in Caracas, Rennie is filming a new video about a Venusia, the car brand that's a joint venture between China's Dongfeng Motor and Nissan.
10:42Lots of people are curious about it, including Jose Bonilla. For him, it's not the quality of Chinese cars that concerns him, but what happens when you need to repair them.
10:52People are wary of Chinese cars because of the issue with spare parts. You can buy a used Toyota for the same price as a new Chinese car, and at least you know the spare parts are available.
11:08And, above all, people who can fix them. With these new technologies, it's hard to find a mechanic who can work on them.
11:17As Isaac leaves the last dealership, he knows his green car, the used Toyota SUV, is too costly. But he doesn't want a Chinese model.
11:30From the new car dealerships we visited, a brand new car is a brand new car. But there were a few things I didn't like, like how the car started. I'm just not convinced by the Chinese market.
11:42And Isaac is no exception. Many Venezuelans have reservations about Chinese cars, even when it comes to MG, once a legacy British brand.
11:55But, despite market resistance and skepticism from customers, brands like MG believe it is possible to capture a fairly large market share in the medium and long term.
12:05This is a process that will take a few more years. It's a difficult process. We can't deny that Venezuelan purchasing power is still very low, especially compared to the entire region.
12:25Still, there are some bold steps which could be taken right away, Renny Rangel believes.
12:35Solving this is simple. Open up imports and eliminate tariffs or cut them to the minimum since there is no longer an industry to protect.
12:47In short, updating the vehicle fleet could help kickstart economic growth.
12:52The controversial Maduro government, however, is taking a different approach, focusing on short-term stabilization through oil sales and foreign investments.
13:07So far, targeted reforms to the car market, like tariff cuts or support programs, haven't yet appeared.
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