Between January and March of this year, Paraguay imported 23,334 automobiles, of which 16,161 (69%) were used, according to data from the National Customs Directorate.

Paraguay has become the main South American destination for used cars from countries like Japan and the US, thanks to more permissive regulations that make it easier for the less wealthy population to purchase affordable vehicles.

Known as the "Iquique cars", imported second-hand vehicles have become a phenomenon in the country, where they are put into circulation after having been transported for thousands of kilometers and "transformed" or repaired once on Paraguayan soil.

"No one is stupid, and everyone knows that the prices we offer are good," Francisco López, owner of a business in Asunción that sells used vehicles from Japan, South Korea and the United States starting at 20 million, explains to Efe. guaraníes (about US$4,700 at the current exchange rate).

"The problem is that the market is shrinking, because many have seen the profitability of the business," admits López, who has been in this trade for 17 years.

The figures provided to Efe by a spokesperson for the National Customs Directorate (DNA) leave no doubt about the growth of the sector: from the 3,248 used vehicles and vans that arrived in Paraguay in 2003, it rose to 35,048 in 2008 and surpassed 55,000 last year.

Meanwhile, the import of new vehicles reached 28,887 units in 2012, 1.72% less than the previous year, according to data from the Chamber of Automotive and Machinery Distributors (Cadam).

Between January and March of this year, Paraguay imported 23,334 automobiles, of which 16,161 (69%) were used, according to the DNA source.

Data for the first quarter of 2013 reflect a 14% increase in the import of used vehicles compared to the same period of the previous year, while the purchase of new cars decreased 16%.

The arrival in Paraguay of these demanded cars is the end of a long process that begins when they are discarded in their country of origin, from which they are transported by boat to the free port of Iquique, in the north of Chile.

From there they embark on a new trip, now by road, to Paraguay, where they will be completely inspected and, those that come from Japan, modified, to change the steering wheel to the side.

Transportation makes the final sale more expensive by just over US$2,000, but it is cheaper than buying a car first-hand and sellers offer financing to customers.

"I pay about US$1,300 per car for transportation by boat to Iquique, another 600 to take it by road to Asunción and then, if the steering wheel has to be changed, it's about 500 more," says Jorge Benítez, owner of one of the many " beaches" of Iquique cars in the Paraguayan capital.

The increase in the importation of these vehicles is supported by favorable legislation: Paraguay allows the purchase of units up to ten years old, while Peru or Bolivia limit it to five years and other countries such as Argentina and Brazil prohibit it.

"They argue that vehicles more than five years old pollute more, but it is not true. We review all of them and adapt them to what they need," López tells Efe.

The "boom" of used vehicles in Paraguay is not seen favorably by everyone: the main victims are the members of Cadam, who have seen their sales decline in recent years, while arrivals from Iquique have grown. .

"Everything we do is legal. We are up to date with our payments to everyone," defends Benítez in response to the criticism that the sector sometimes suffers for lack of transparency or regularization of automobiles.

The number of "playas" continues to increase and the Center for Importers of Used Vehicles (CEVI), which has about 1,000 associates, expects to increase sales in 2013 between 10 and 15%, its leaders told the local press.

The good moment that the used car market is experiencing in Paraguay has not gone unnoticed in the world and the CEVI is already doing business at good prices in Spain, due to the crisis, or in the Middle East.

"There is an increase in vehicles from the Middle East, which tend to be luxury, as well as from Europe, whose imports should grow by 10% this year in our market," says Benítez.