In 2023 prices will continue to be high. Organizations such as the Monetary Fund warn that the cost of living, like this year, will continue to be the main headache in the world.


As of November, 240,458 new vehicles were sold in Colombia. PHOTO JUAN ANTONIO SANCHEZ

Although everyone has felt the shortage in their pocket, by 2023 some items would rise more strongly and an example is cars. Buying and maintaining them is going to be expensive and it is explained for several reasons.

To start, it must be remembered that in the country there are several insurances for vehicles, but the most relevant are the Compulsory Traffic Accident Insurance (Soat) and the All Risk Insurance.

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Although the so-called Soat discount of 50% has already been signed by decree, it only covers motorcycles with a cylinder capacity of up to 200 cubic centimeters, taxis, urban minibuses, business vehicles, urban public service, buses, vans and public transport vehicles. inter-municipal public service.

Therefore, private vehicles will have an increase in insurance, but unlike previous years it will not be subject to the minimum wage – which will rise 16% in 2023 – but to inflation, in response to a government measure to face the shortage .

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Thus, the adjustment will be around 12%, taking into account that annual inflation reached 12.53% in November –in the absence of consolidated data for 2022–, although it is still a significant increase.

In the case of All Risk Insurance, those who pay it have revealed that the increase is between 30% and 40%, on average.

On Twitter some users showed their discontent. “Ask the @SFCsupervisor (Superfinanciera) who controls and regulates the unjustified increase in car insurance against all risks? Today my insurance went from $1,200,000 to costing $2,760,000 a year , ”user Saul Gualdron (@sagun13) tweeted.

Another "onslaught" that drivers will have to resist, and in fact they have already been doing so this year, is that of gasoline prices. As the Government announced, during the next few months they will continue to rise to compensate for the Fund's deficit that helps to stabilize them.

Currently, a gallon of fuel is at $9,778 in the average of the 13 main cities in the country, $199 more than what was paid in November, according to the Ministry of Mines and Energy.

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In Medellín the value already exceeds $10,000; for this month the gallon reached $10,063, $199 more compared to November. And in Bucaramanga, for example, the monthly adjustment was $205.

Now, according to the Government, next year the increase in these rates will have to be accelerated, for which reason more than $200 will be adjusted monthly ; even not only ordinary gasoline would be involved but (gradually) also diesel.

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As if that were not enough, drivers are concerned about what will happen to spare parts, which have become more expensive. “A normal car tire was worth $100,000 and now it is costing $150,000 ; and so it is with everything. I would say that the spare parts have gone up from 35% to 40%”, says Ignacio Franco, owner of a Sandero Stepway.

All this, without taking into account unforeseen expenses, the mechanical technical review and even the one taken to the car wash, allows us to see a difficult year for the pocket of vehicle owners.

And the new ones?

For those who decide to buy a car in 2023, the situation would be even more complex. According to a study by the firm Scrap Car Comparison, Colombia is the third most expensive market to purchase a vehicle, only surpassed by Turkey and Argentina.

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The analysis was based on the average annual income of people in each country and how much accessibility to a vehicle they would have. In Colombia, 508.93% of the remuneration per year would be needed to be able to do so; in Turkey 652.29% and in Argentina 515.77%.

In this context and with phenomena such as the expensive dollar, the Superbid firm ensures that in 2023 consumers will resort to used cars. In fact, the National Association for Sustainable Mobility (Andemos) maintains that for every new vehicle that enters circulation in Colombia, there are four used ones that are transferred.

It goes without saying that it will also be relevant to pay attention to interest rates, which are currently above 12% in the country, at least that is the rate established by the Bank of the Republic, but they could continue to rise.

In fact, personalities such as Elon Musk, CEO of Tesla, and Cathie Wood, CEO of ARK Invest, expressed their concern about possible defaults on vehicle loans, since in the case of the United States several acquired credits to buy their car at considerable prices. during the supply crisis, and to the extent that the situation normalized, these have been decreasing.

With the price of the vehicle falling and interest rates rising – in the United States the Federal Reserve raised them to a range of 4.25% to 4.5% – several buyers had to extend payment terms or are not even honoring the debt, for which Musk even warned that a financial crisis could be generated.


Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Waheedch.com. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
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