23 December 2010

ARGENTINA: Buying Cars To Park Savings Is Hot As Inflation Hedge.

G.POST/  Julia Drapkin /

    Argentines are buying cars in record numbers.
    But its probably not to commute to work. "It's very uncomfortable to drive in Buenos Aires — commuting to work is very crowded and there's lots of pollution," said one new car owner. "Most days we plan to leave it parked and travel by subway or bus."
   Instead with currencies in flux and inflation predicted to hit 30 percent in 2011, they are trying to find places to park their savings because banks there only offer 8 percent interest rates.
      While a new car depreciates in value in most places, it does not in Argentina.