The Cuban government implements a "system for exchanging old cars for recoverable vehicles from the state sector."

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Street in Old Havana (Reference image)Photo © CiberCuba

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The Ministry of Transportation of Cuba (Mitrans) and the state company Servicios Automotores SA (SASA) have implemented a new mechanism for owners of old cars to exchange them for vehicles derived from decommissioned state entities, reported the official media Cubadebate.

The measure, regulated by Decree 119/2024, is presented as an alternative in response to the scarcity of spare parts and the transportation crisis on the island, although it does not address the issues of an aging vehicle fleet or the limited access of Cubans to modern cars.

According to statements collected by Cubadebate, the process will be managed exclusively through the SAG platform, accessible only from Cuba. Assignments will be made automatically without considering the brand or year of manufacture of the vehicle. Each user will have two opportunities to accept or reject the offer, and in the event of a successful exchange, they will need to pay a percentage of the cost of the new vehicle received in national currency.

Once notified by email, beneficiaries will have five days to accept the offer online and an additional five days to confirm the procedure in person. After that, they will have 30 days to deliver their old car and complete the purchase.

More than 3,000 applications have been approved in the first phase of the program, which will conclude on March 16. Starting on the 21st of the same month, any citizen will be able to register. Currently, 7,975 applications are pending, of which 113 remain incomplete due to lack of information.

The assigned vehicles will not be new models, but rather units that have been decommissioned from the tourism sector and other state institutions. Although some have more recent technology than cars that have been inactive for decades, access to modern vehicles in the country remains an unresolved issue. The Ministry of Finance will set the prices, which will include regulated taxes and profit margins.

An obsolete and dangerous vehicle fleet

The automotive fleet in Cuba is one of the oldest in the world, with a significant number of Soviet-made vehicles and American models from the 1940s and 1950s still in circulation thanks to makeshift repairs. The shortage of spare parts forces many drivers to rely on handmade adaptations, which compromises road safety.

This is compounded by the high costs of vehicles on the island, where purchasing a modern car remains unaffordable for most of the population. In the state market, prices have historically been high, and in the informal market, shortages further limit purchasing options.

The condition of the vehicle fleet also contributes to the high rate of traffic accidents in the country. According to official data, many of the incidents recorded in recent years have been linked to mechanical failures, brake system malfunctions, or the inability to find suitable replacement parts for preventive maintenance. The poor state of the roads and inadequate traffic signage further exacerbate the problem.

A partial relief to a long-standing crisis

The new exchange system promoted by the government could provide some relief for certain drivers, but it does not address the structural problem of access to vehicles in Cuba. The reliance on reused cars from state entities and the lack of a more accessible import market continue to leave most Cubans without real opportunities to improve their personal transportation.

As long as there are no options that allow for the acquisition of vehicles under more favorable conditions and without restrictions, the transportation crisis on the island will continue to be an obstacle to citizens' mobility and a risk factor for road safety.

Frequently Asked Questions about the Car Exchange System in Cuba

What is the new system for exchanging old cars in Cuba?

The new exchange system allows owners of old cars to trade them for decommissioned vehicles from state entities. This mechanism is regulated by Decree 119/2024 and is managed through the SAG platform, accessible only from Cuba. The assigned vehicles are not new, but rather units recovered from the state sector.

How are requests managed in the car exchange system?

Applications are processed automatically through the SAG platform, regardless of the brand or year of manufacture of the vehicle. Recipients have five days to accept the online offer and an additional five days to confirm the process in person. In the event of acceptance, they must pay a percentage of the cost of the vehicle received in national currency.

What is the current state of the automotive industry in Cuba?

The automotive fleet in Cuba is one of the oldest in the world, with many vehicles from the 1940s and 1950s still in circulation. The lack of spare parts and the high costs of modern vehicles lead to many cars being repaired in makeshift ways, compromising road safety. Scarcity and high prices in the state and informal markets limit access to modern vehicles.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.