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Cubans have reacted with shock after foreign-made cars went on sale for the first time since the 1959 revolution at what some termed "crazy" prices, BBC reports.
The state has a monopoly on new cars and is marking up prices 400% or more.
A Peugeot 508 costing £32,000 ($53,000) in the UK is listed at $262,000. State salaries average about $20 a month.
Freeing up car sales is the latest in a series of reforms in Communist-run Cuba. The requirement for a permit to buy new vehicles has been abolished.
However, only a minority will benefit.
Until new regulations in 2011, people could only sell cars built before the 1959 revolution.
For new cars, people needed a much-sought government permit - a privilege mainly bestowed on senior officials, top athletes and artists.
The permits were often traded on the black market for large sums of cash.
The latest move is part of a series of reforms driven by President Raul Castro aimed at updating the Cuban economic model.
Raul Castro has championed limited free-market reforms since taking the reins of power from his brother Fidel in 2008.