The southern Iraqi city of Basra is experiencing a boom in imported used American cars, with online auctions facilitating the purchase of up to 1,500 vehicles per month, local dealers and importers said.

The relaxed import rules have helped Iraqi importers bring in a range of vehicles moving away from low-cost, low-quality cars imported from neighbouring Iran, which has held the lower end of the market for more than a decade with its Saba model, often used by taxi drivers across Iraq. That model was initially based on the Kia Pride from Japan in the 1980s.

The surge in popularity is driven by price differences of up to $8,000 compared to new cars of the same models available in Iraq, making "American imports" an attractive option for many buyers.

Haider al-Askari, a car importer in Basra, said: "American import vehicles have become more popular and well-known in the markets because their prices are reasonable and their durability is high."

The number of online auction offices in Basra has grown from just five in 2020 to hundreds this year, according to Hassanein al-Mousawi, owner of an auction house for American cars.

"All these offices deal with the American auction company Copart," al-Mousawi said. "Three thousand cars from all American states are displayed, and when a vehicle is reserved, the auction takes a 3% commission."

The online platforms allow customers to view detailed reports on car damages and accident histories provided by US authorities, helping Iraqi buyers make informed decisions.

Most imported cars are priced between $15,000 and $20,000, offering savings of $5,000 to $8,000 compared to new models of the same type sold in Iraq, according to al-Askari, 964 reported him as saying.

Popular brands include Chrysler, Dodge Charger, Dodge Challenger, Jeep, Hyundai Elantra and Hyundai Sonata.

Based on import documents, a lot of the cars that come through ports in New Jersey and Connecticut are not designed for the hot Iraqi summers, unlike other vehicles in the region that meet GCC standards and have larger radiators.

The growth in used car imports has affected the new car market, said Jassim al-Mansouri, a car showroom owner. "There is great demand for American import (used) vehicles, which has affected the new vehicle market," he noted.

Al-Mansouri gave an example of the price difference: "A new 2022 model Dodge Charger costs $38,000, while if it's an 'American import,' it doesn't exceed $30,000."

Many of the smashed-up wrecks making their way to the Persian Gulf port are only financially viable due to the low cost of labour in Iraq, unlike other regional countries like Kuwait and Saudi Arabia, which have strict import rules on automobiles.

The import process involves transporting vehicles from the United States to Basra through Umm Qasr port, with shipping costs ranging from $1,700 to $2,000 per car – relatively affordable.

Local workshops have adapted to service these imported vehicles, with about 100 specialised repair shops in Basra focusing on damaged imported cars, al-Askari said.

Iraq’s economy continues to grow, with new interest from several countries, including Switzerland, which announced it had reopened its embassy in the country after 33 years.