Argentines Purchase Luxury Cars as Hedge Against Inflation
Anything to escape their worthless currency
Argentines are buying more BMWs, Jaguars and other luxury cars as a store of value as inflation decimates their deposits and pummels the nation's bonds.
Purchases of cars from Germany's Bayerische Motoren Werke AG (BMW) and Jaguar Land Rover Automotive Plc, owned by India's Tata Motors Ltd. (TTMT), jumped the most in April among brands sold in Argentina. The sales were part of a 30 percent surge in car sales from a year earlier that was the biggest increase in 20 months, according to the Argentine Car Producers Association. While used-car prices rose in line with inflation last year, or about 25 percent, peso bonds tied to consumer prices fell 13 percent. The drop was the biggest in emerging markets.