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Reasons For The Increase In Foreign Car Prices In 1399 - Car Talk - Nairaland

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Reasons For The Increase In Foreign Car Prices In 1399 by saraminiii: 7:20pm On Dec 22, 2020
According to the vice-president of the Automobile Exhibitors Association, car prices have not changed much from before the two-week corona restrictions; But with the dollar falling, so are car prices. In this regard, car market participants also believe that with the decline in the price of the dollar, car prices will also experience a significant decline.

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Rising currency prices
The tightening of sanctions and the breach of Borjam's commitment can be considered as one of the main reasons for the excessive increase in currency prices. This issue has a strong impact on the pricing of all goods, especially foreign cars. This has caused the price of foreign cars to increase many times over, and the popular cars of brands such as BMW to cross the 5 billion mark in a few months.

Decreased quality of domestic car
The conditions of sanctions and excuses of various automakers also had an impact on the quality of domestic cars. Two famous Iranian carmakers tried to create conditions for price increases by hiding the prepared cars. Prices that, in the opinion of many buyers, are not commensurate with their quality at all. On the other hand, the continuation of the embargo conditions caused the car manufacturers to use low-quality parts in cars so as not to lose their market. These two issues, namely the unreasonable increase in the price of domestic cars and the decrease in the quality of cars, caused the price of foreign cars to increase rapidly.

Choosing a car market as a way to invest
Another issue that is causing a significant increase in prices in the foreign car market is that this market is becoming a place for investment. Some of the more affluent buyers, who bought the car before the start of the upward trend, considered the beginning of this trend as good news and started injecting their money into the used foreign car market. In addition, other buyers who felt that their heads were empty began to raise money to invest in this market and multiplied their capital by buying and selling cars.

Lack of close monitoring
In the current market of the country, there is no accurate and correct supervision over the method of determining the price of domestic cars, let alone foreign cars. At present, speculators and large investors in these markets are in control of everything and try to maximize their profits by preventing falling prices. Another issue is that the government or related institutions have not made any effort to stop this trend and do not establish a law and rule to determine the price of cars in this market.

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