New vehicle prices in Argentina could be poised for a shift following a recent decision by the Management of Revenue and Customs Control (ARCA) to adjust internal tax thresholds, effective December 1, 2025. The agency’s move, raising the taxable value threshold for new cars, has sparked anticipation of potential price reductions, notably for higher-end models. While the extent of any savings remains dependent on automaker decisions and ongoing economic factors,the change offers a potential break for consumers in a challenging market.
23:25 | 09/12/2025
Automobile prices could see a significant drop following a recent adjustment to internal tax scales by the Administration of Revenue and Customs Control (ARCA). The agency raised the threshold at which new vehicles are subject to taxation, sparking expectations of lower prices for higher-end models. This move comes as the automotive sector navigates a complex economic landscape.
The official ARCA update took effect December 1, 2025.
Tax Exemption and Potential Savings
The key change centers on the taxable value of vehicles:
- Previous Threshold (Until Nov 30): $63,166,936.50 (excluding VAT).
- New Threshold (From Dec 1): The floor has been raised to $74,314,009.43.
As a result, vehicles with a sale price of up to $102,600,000 pesos are now exempt from this tax.
Tax expert Sebastián Domínguez explained that if automakers pass the benefit on to consumers, the reduction in the final price could be as much as $16,311,923 pesos, representing an approximate decrease of 13.71% of the total price.
Automaker Strategy and Potential Risks
Despite the potential for price reductions, analysts caution that the extent of any decrease will depend on the commercial strategy of each brand and the exchange rate. The automotive industry is particularly sensitive to currency fluctuations.
Domínguez noted that the devaluation of the peso could limit the impact of this reduction, as automakers may choose to:
- Offset losses with more moderate price increases.
- Refrain from lowering prices, as some brands often “cap” the values of certain models to avoid paying the internal tax. (NA)
