Nov 16, · Cars available include Bertone designs—such as a Fiat/Bertone X1/9, a Fiat Dino Coupe, and a Alfa Romeo GT Junior Non . Car auctions have become an integral part of the market of purchase and sale of cars in the world. In Russia this phenomenon has not yet settled down, but it may soon become one of the most popular forms of trading. What trends are distinguishing for the turnover of cars in Russia and what is international experience of auctions in this sector the experts of OJSC AHRF Consulting explored. Jun 19, · (The company’s holdings include Manheim, which runs auctions and tracks the used-car market.) But demand and prices began rebounding in May, as .
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In this connection, the Soviets are looking increasingly to the Western countries for modern equipment and technology to produce consumer goods. In response to lower rates of growth in consumption, some features of Brezhnev's extensive 'welfare package" announced ath Puity Congressave been delayed in an apparent effort to keep incomes in line with available goods and services For example, the increascain the minimum wage fromoonth, which bad been scheduledtill has not been fully implemented.
Those areas in which unsatisfied consumer demand is theand the supply of qualitybeen among the slowest to improve. Ihc fulfillment of goals for increases in the supply of quality foodsouldubstantial decline in the share of dairy calories obtained from tbe starchyand grain.
Meat consumption, for example, is slated to risend that of dairy products. Even if the goal for meat production is met. Although the housing situation has gradually improved, the fulfillment of the new five-year plan goal would still leave per capita housing spacehort of the minimum standards set for healih and decency by Soviet officials and far short ol the conditions enjoyed by other Kurupeans' Soviet housing plans, moreover, usually have been under fulfilled.
Trade with the developed West increased byncreaseargely because of record imports of grain, valued at0 million2 andillionhe United Slates emerged us the USSR's second laigest trading partner oulside of Eastern Europe. Soviet trade with Eastern Europe grewn2oth years brought large Soviet deficits after many years of nearly balanced trade. Soviet exports went2 billion1illion3 and imports rose3 billionillion.
Eastern Europe maintained the same share of Soviet trade2 as it had since3hare declined. The deficits resulted primarily from largein Soviel purchases of machinery and equipment and consumer goods from Eastern Europeontinued reduction in Soviel sales of grain to these countries.
Soviet-Chinese trade grew relatively slowly, hy32 million; it was exactly balanced in exports and imports. Debt service payments of0 millionf its hard currency exports. Soviet machinery orders from the West6 billionise over.
Since most equipment orders are connectedplans for capital expansion, deliveries will stretch out over several years. Increases in the world prices of several commodity exports, particularly oil, provided Ihe Sovietsubstantial windfall gain in hard currency earnings.
For example, the average price of Soviet oil delivered to the United States in. Farm output4 Is slated to increase" This is clearly an ambitious goal because the bumper harvests recorded last year will be difficult to match, let alone to surpass. In contrast to the Khrushchev era, the piesent leadership's concern forseems not to have waned after an exceptionally good harvest. Indeed, Brezhnev recently announced plans to spendillion rublesn the first phaseyear project to improveillion hectares of agricultural land in the northern European area non-hlack-soil zone of the Russian republic, includingillion hectares of crop land andillion hectares of grazing land.
The crop land, equal tof present sown acreage, is about the size of the "new lands" area of Kazakhstan and Western Siberia that was developed during. The new program is aimed at damping the large fluctuations in farmhave plagued Soviel agriculture. Theincrease scheduled for industry4 is within reach, although continued shortfalls in energy production areroduction of color television sea.
Thencrease in output of cars planned4 probably will be achieved because tbe Tolyatti automobile plant will be operating, for the first time, at or near capacity levebullonths Nearly one out of every two cars produced in the USSR4 will come from this facility. Production of the Soviethich represents nearly one-third of all passenger cars in production, is also likely to make large gains in tbe newly renovated and expanded Moscow and Izhevsk plana.
If plans for industry and agriculture are met, per capita real income4 will grow bynd per capita consumption byoth somewhat more than the average rates for thoears of theear plan. The capital investment program inill attempt to repeat or belter last year's performance In concentrating investment resources on projects nearing completion. Inf all centralized Investment will be directed to this end.
Funds will be allocated primarily to agriculture and key industrial branches. Cross additions of new fixed capital arc scheduled tover3 level with major new capacity planned for industries producing fuels and power, ferrous metals, and mineral fertilizers. On balance, the economy should continue on its present tacknd probablyith growth avengingor the two years In the longer term, the USSR wiU be hard pressed toate of growth as high aser year.
Most of the problems which contributed to the slowdownill remain. The USSR will almost certainly want to trade more with he United States, especially for high-technology products, bul can find most of what it wants in Western Europe and Japan. The USSR and Japan initialed an agreement earlier this year that could pave the way loi one nf the biggest economic deals between Ihe two countries since the ond of the Second World War see" The Japanese willredit0 million to helpoal mining project in Yakutsk in eastern Siberia.
An agreement has been signed for joint developmentI billion iron ore and steel plant in Kursk. France has actively supported Soviet developmentrench firms have0 million contract for the developmentiberian cellulose plant0 million contract for the design and equipping oftrocherrucal plants In addition, there has been some discussion of French participation inI bdlion aluminum complex.
The detailsumber of major projects in which the USSR is exchanging raw materials for Western technology and equipment arc presented below. Several projects have been already signed, such as the natural gas deals with Western Europe. Other and much larger ventures are being negotiated now. Direct purchases equipment for the Kama Truck Plant, for example arc not included in the listing.
The USSR. Sangyo Company are in the final stages ofecond development agreement for far east Siberian timber reserves. Negotiatioiis on the follow-up project have been in progress for moreear, but final agreement has been stalled by differences over pricing. As currently envisioned, the USSR will purchase, under long-term credits0 million In timber cutting and hauling equipment and timber carrying ships. In return, the USSR willillion cubic feet of sawn logs and pulpwood to Japan, with prices likely to be tied to world market levels.
Deliveries under the project would constitute anf all Japanese timber imports from the USSR during the period of the contract. Soviel and West German firms onarch reached preliminary agreement for the development of an iron and steel complex near Kursk. The first stage of the project will take place48 and willclletizing plantapacity ofillion tons per year, an electrical steel plantillion tons per year of bar stock, and rolling mills producingillion tons of rolled steel.
Discussions for the second constructionill begin. Negotiations, in progress for moreear, had been blocked over the question of financing. The Soviets hadirm commitment for over SI billion in long-term credils athen informed earlier this year that West Germany would not provide subsidised credits, Ihe Soviets stated that they would pay cash for the nearly Si billion in Western imports required for Iho first stage of the project.
By paying cash, the USSR will save several hundred million dollars in interest charges and will. The Soviets did stale, however, that the second stage ofwill be financedarter basis, with Soviet repayments probably based on output from the first stage of Ihe project.
Tho deal is valued at at0 million and will be financed under an earlier agreement that made available to the0 million line of credit. The USSR will repay the credit with products manufactured in the plants suppliedons per year forrea, and titanium dioxide.
In3 the USSR and Occidental Petroleum Corporationyear agreement under which Occidental would supply phosphoric add in exchange for Soviet ammonia, urea, andexchange that was to start8 and expected to5 billion toillion each way. Occidental was also to arrange for supply of equipment and technology forertilizerto produce ammoniaorfor supporting Infrastructure pipelines from Odessa to Tol'yatti and storage, loading, and porthe fertilizer equipment and technology together with the pipeline and related facilities were originally valued0 millionSoOO million and were to be repaid with fertilizer An Export-Import Bank loan0 million has recently been approved,rivate US banking consortium has been formed toatching amount.
The recent approval of the Erimbank loan jhould lead to US contracts for the infrastructure and possibly for technology and equipmentfmmonia plants that came under the Occidental agreement. Petroleum apparently will be responsible for the support facilities. A consortium of threeexas Eastern Traas-mlssion CorporaUoo. All of the gas would come from the large Urengoy deposit in the permafrost areas of North Tyumen Oblast in West Siberia. The US consortium would participate in comlruction of gatheringinch-diameter gus pipeline to an export terminal in the Murmansk area0arge liquefaction plant, and iclaled terminal and port facilities.
Initial deliveries of gas were to start. The original proposal envisaged dollar costs olillion0f7 billion would go for Soviet-based installationsuble costs for construction of these latter facilities were expected to be equivalent lo abouthe proposal specified an fo-b. Negotiations ore continuing. Several major differences over prices andttttitl be ironed out before the project can go forward. Inccidental Petroleum Cocpoeitkm.
Yakutsk gas would be pipediles Io Nakhodka where an LNG plant and export facilities woukl be constructed. Japan and the United Stales would eachillion cubic feetG per day via tankeryear period beginning Inrom the same project, the USSR also expects to obtainillion cubic feet of gas per day for consumption in the Far East.
Tho cost of the gathering system,C plant, and export facilities to be built by US and Japanese firms in the USSR has been estimated at about S3 wlhon0 dollars Locally incurred ruble costs have been estimated to be roughly equivalent. The USSR requested supplementary credits0 million to coverequipment needed for seismic work aid npkxafoiy drilling to find and evaluate gai reserves in Ihe Yakutsk area.
At present the USSR claims only nboulrillion cubic feet of explored reserves. US and Japanese technician? In water depths up1 fnl, there may lie someillion. Discussions hud long been flatten1 by diflVrnicos over production thai ing the provision of risk capital, aadlcr ol iutnit which outlined basic forms of thejest was signedut no additions! Under the terms ol tlie Apnlpan will provide tho0 million to cover exploration cost,eriod. Wholesale prices — what dealers pay for used cars at auction — fell steeply in April, as demand dwindled and auctions were halted because of the pandemic, said Zo Rahim, manager of economics and industry insights at Cox Automotive.
But demand and prices began rebounding in May, as states started to reopen their economies, Mr. Rahim said. Schuster said. But the holdings represent a small fraction of the roughly 40 million used-car transactions that occur each year, Mr. Chapter 11 proceedings allow companies to reorganize and keep operating, rather than liquidating holdings.
George Chamoun, chief executive of ACV Auctions, which conducts online used-car appraisals and auctions, attributed the rebound in vehicle values to more demand for used cars as people avoided public transportation and ride-hailing services out of concern about the virus. Used-car values in some states are nearly back to where they were before the pandemic, he said, and in some — like Florida — are higher.
But even as some people are buying cars to commute to work, others may be continuing to work at home, which may reduce demand for cars.
Auto manufacturers cut production in response to the pandemic, and that may push more buyers to used models, buoying demand — and prices.
The company analyzed thousands of cars available in May on HertzCarSales. But rental cars, especially smaller models, which are typically less expensive to rent, may have more miles on them than other used cars, iSeeCars reported. The average mileage on Hertz cars sold in May was 31 percent higher than on used cars from typical dealerships. What are the pros and cons of buying a car from a rental agency?
The vehicle may have turned out to be untrustworthy and not a good value. Your financial situation may have changed so you can no longer afford its monthly payments and other costs. You wish you could just get out of the obligation. You may not realize how difficult it is to just get out of a car or truck purchase or lease. Returned and repossessed vehicles are usually sold at auto auctions, where the purchasers are mostly used car dealers. So the amount your vehicle is sold for and the amount credited to your account is often pathetically small.
On the other side of the ledger, the amount you owe is often much more than you expected. Your contract almost always allows the lender or lessor to tack onto your account ALL kinds of s additional costs. All of its costs of surrender or repossession, and of the re-sale process are piled on, item after item, each one adding to the amount you owe. It no longer has any collateral backing up the debt. It knows that paying this debt is not likely your highest priority. Sometimes the law gives it a relatively short time to sue or lose out on the chance to make you liable on the remaining debt.