Costs of Owning a Car in Brazil

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Cynthia Fujikawa Nes Cynthia Fujikawa Nes Co-Founder
The Brazil Business Cars in Brazil have one of the highest tax burdens in the worldly concern and the cost of having a car is evenly arsenic gamey. In this article we will have a spirit at some of the costs related to keeping a cable car in Brazil.

Prices of New Cars

even though Brazil presently ranks in 8th position among the largest car manufacturers in the world according to OICA, short for Organisation Internationale des Constructeurs d’Automobiles, Brazilians however pay a high price for the cars in comparison to countries like the USA, Argentina, France and Japan. Specialists estimate that the markup for brazilian carmakers is at least doubly what is practiced abroad and this could be the result of poor rival. For each car sold in Brazil, the car manufacturer profits 10 %, while in the USA the percentage is 3 %, according to Sindipeças, the National Sindicate for Industry of Automotive vehicle parts. The minor hatchback cars are calm the most popular in Brazil due to their relatively humble prices. For reference on prices of modern cars and the most popular models in Brazil, check the article “ The 30 best-selling Car Models In Brazil ”.

Taxes

According to IHS Automotive Consulting, 32 % of the costs of a newly car are directly related to taxes. however, the tax that most concerns car owners is the IPVA which is due per annum. IPVA is charged on the possession of any car vehicle. The respect is calculated according to the vehicle profile and its state of beginning. For the state of matter of São Paulo, the rates in 2014 were :

Type of vehicle Rates
Trucks 1.5%
Buses, minibuses, cab trucks, motorcycles, mopeds, scooters, tricycles, quadricycles, earth moving machinery, forklifts, cranes, locomotives, tractors and similar 2%
Vehicles using ethanol, natural gas or electricity 3%
Any other motor vehicle that is not included in the categories specified above 4%

The rates applied according to the postpone published by the State Treasury Office, known as Secretaria da Fazenda, are based on the average market price for cars of exchangeable models and characteristics. A deduction is offered if the IPVA is paid in only one episode in January, but it is besides possible to pay it in three monthly installments. Old or vintage cars, which are those older than 20 years are exempt from the payment of the IPVA.

Insurance and Licensing

In addition to the IPVA, there are other mandate expenses immediately related to owning a car. These are the DPVAT, CNG and Licensing.

DPVAT

Short for Seguro de Danos Pessoais Causados por Veículos Automotores de Via Terrestre this is an insurance for personal price caused by automobiles, which guarantees that the victims of accidents caused by an car receive an indemnification. The indemnification goes from BRL 2.700,00 to cover medical expenses to BRL 13 500.00 in case of death or permanent disability. The DPVAT is paid along with IPVA and has a fixed value of BRL 105.65 for cars, BRL 292.01 for motorcycles if paid in one episode, BRL 396.49 for buses and BRL 110.38 for trucks. The value is the same for locally produced and imported cars.

GNV Stamp

Used by more than one million vehicles in Brazil, compressed natural boast or CNG equipped cars must go through an annual inspection carried out by shops accredited by Inmetro. The modal monetary value of the inspection is of BRL 260.00.

Licensing

Every class cars are required to renew their CRLV, short for Certificado de Registro e Licenciamento do Veículo, which is the vehicle license and registration certificate. This document is mandatary and the tip is BRL 72.25. besides, all the fines you might have received over the annual period must be paid in holy order to get your fomite licensed.

Regular Insurance

Car indemnity varies a lot according to the owner ’ randomness old age, how the cable car is going to be used, how many people will drive it and, of class, according to the cable car itself. policy in Brazil is quite expensive and therefore many people do not have it. The insurance frequently varies between 3 to 10 % of the total car price per class.

Devaluation of the car

once the car has left the franchise, it suffers devaluation that ranges from 10 % to 30 % in the first year alone. Applying this logic, those who buy a stigmatize fresh economic car, do not have to worry excessively much about the devaluation that credibly will not surpass 15 % in the first year. Those who are matter to in more “ epicurean ” cars should opt for a pre-owned version with merely one year of use as they tend to devalue by 20 %. According to research made by Agência AutoInforme in 2014, Chevrolet Onix is the least depreciate car, with a rate of 8,5 % per year, while the Hyundai Azera has suffered the greatest devaluation, reaching 23.8 %.

Fuel

tax income on gasoline in Brazil corresponds to 53 % of the liter monetary value. here is a list of the minimal and utmost prices for a liter of gasoline in major brazilian cities, obtained through the page Preço cause Combustíveis in August 2015 :

  • São Paulo, SP: from BRL 2.80 to BRL 3.40
  • Campinas, SP: from BRL 2.80 to BRL 3.45
  • Ribeirão Preto, SP: from BRL 2.90 to BRL 3.30
  • Rio de Janeiro, RJ: from BRL 3.24 to BRL 3.80
  • Niterói, RJ: from BRL 3.20 to BRL 3.80
  • Porto Alegre, RS: from BRL 3.00 to BRL 3.82
  • Curitiba, PR: from BRL 2.90 to BRL 3.40
  • Belo Horizonte, MG: from BRL 3.07 to BRL 3.60
  • Recife, PE: from BRL 2.90 to BRL 3.60
  • Brasília, DF: from BRL 3.53 to BRL 3.54
  • Salvador, BA: from BRL 3.18 to BRL 3.99
  • Natal, RN: from BRL 3.15 to BRL 3.38
  • Manaus, AM: from BRL3.38 to BRL 3.59
  • Belém, PA: from BRL 3.25 to BRL3.49
  • Vitória, ES: from BRL 3.19 to BRL 3.61

For ethanol the prices are :

  • São Paulo, SP: from BRL 1.70 to BRL 2.20
  • Campinas, SP: from BRL 1,60 to BRL 2.30
  • Ribeirão Preto, SP: from BRL 1.48 to BRL 2.17
  • Rio de Janeiro, RJ: from BRL 2.30 to BRL 3.00
  • Niterói, RJ: from BRL 2.25 to BRL 3.00
  • Porto Alegre, RS: from BRL 2.29 to BRL 2.92
  • Curitiba, PR: from BRL 1.88 to BRL 2.40
  • Belo Horizonte, MG: from BRL 1.86 to BRL 2.50
  • Recife, PE: from BRL 2.00 to BRL 2.70
  • Brasília, DF: from BRL 2.72 to BRL 2.74
  • Salvador, BA: from BRL 1.50 to BRL 2.70
  • Natal, RN: from BRL 2.46 to BRL 2.87
  • Manaus, AM: from BRL 2.39 to BRL 2.93
  • Belém, PA: from BRL 2.30 to BRL 3.00
  • Vitória, ES: from BRL 2.39 to BRL 2.89

Parking fees

Parking your car on the streets is not an option in major brazilian cities. Parking spots are scarce and the ones available may be in a dangerous area. The safest choice is to leave your car in a private parking bunch, however, it can be expensive. just to give an mind, parking your car in the Avenida Paulista area, in São Paulo, can cost you BRL 15 per hour. If you manage to find a garage in the area that will offer you a fasten park blemish you may have to spend between BRL 350 and 450 per month. Parking on the street can be charged angstrom well. There is a system called Zona Azul ( blue zone ), which corresponds to the line of an area where park will be charged, even though your car is left on the street. The price is BRL 5 per hour and there is a terminus ad quem of 2 hours per car in the determined position. If you fail to fill the Zona Azul cards or to display it on the dashboard, a fine will be charged. There are several traffic officers that keep a close eye in these areas.

Toll-road fees

According to research institute Ipea, the national average for the toll-road fees is of BRL 7.6 per 100 kilometers. The most expensive states are Rio de Janeiro, with prices that can reach BRL 20.49 per 100km and São Paulo, with BRL 14.64 per 100 kilometer .

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