The sale of used cars slows down and those with lower consumption are prioritized - My Blog
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The sale of used cars slows down and those with lower consumption are prioritized

Thursday June 16, 2022 | 6:04 a.m.

The Automotive Chamber of Commerce (CCA) recently warned that the volume of vehicle sales has been declining and less activity is projected for the coming months. At the local level, it was also agreed that although operations are still being carried out, the purchase interest is showing to be low.

According to CCA records, 2,096 cars were transferred last May, an improvement of 26.95% compared to May 2021 when 1,651 vehicles had been transferred. If the records are compared to April 2022, the improvement is 6.78% since 1,963 cars had been sold. Meanwhile, in the first five months of this year, a total of 10,053 sales were accumulated, an increase of 3.63% compared to the same period in 2021 when 9,089 were added.

Faced with the current sales activity, the missionary merchants pointed out that there are fewer operations and they are looking for economical models as well as fuel savers. A clear sign of the impact of the cost of fuel on mobility.

“The entire economy is at a standstill, people do not have the money or it is not enough to be able to renew their cars. Our sector is surely not very essential and is neglected in these times. The issue today is that there is enough to eat and for a little health, for the rest there is no money. We are really experiencing a very restricted period of cash circulation, so our business is also suffering from the stoppage that is being felt in most sectors,” said Ramón Alcaraz, a merchant and owner of car dealerships in the provincial capital.

He pointed out in reference to the valuation of the best-selling models that “the sale is very limited and models worth from 1 million to two million pesos are sought. High-end car sales are down. We are experiencing critical moments because there is no production of 0km cars either. Cars close to the new one are also scarce”, he evaluated.

He also analyzed that more notoriously there are interested parties who seek to acquire a car that means economic maintenance. Thus, he pointed out as virtues that the model has a good replacement of spare parts and that it has low fuel consumption. “People aim to buy a used car that is easy to repair, there are national brands that still have a certain advantage in relation to other brands that are produced outside the country. Today the fuel issue is a complicated issue, for diesel cars it has become much more expensive and complicated. For gasoline cars too, people pay a lot of attention to the level of consumption. Today there are many people who are looking for more compact cars with a fairly low gasoline consumption”.

For his part, Fabián Malarczuk, merchant and president of the Misiones subsidiary Automotive Chamber of Commerce, considered that Misiones follows the national trend towards a reduction in activity. “In Misiones, the same thing is happening as in the country, a drop in sales. Likewise, people who do an analysis realize that buying a car is an excellent investment because month after month it increases by 4 and 5%. When people buy a car and six months go by, they see that the price of their car has increased. It is a phenomenon that is happening a lot, with people who have some pesos, what they do is get rid of the pesos and try to acquire something. It is happening with cars but also with construction materials and other types of goods. The good thing about investing in a vehicle is that you buy it and enjoy it, whoever makes an investment in dollars has to wait for the money to rise. It is more or less the panorama that is happening, ”he explained to El Territorio.

As for the models being sought, he pointed out: “There are two types of vehicles sought: pre-owned vehicles from 2020 or 2021, are sought after by people who expected a zero kilometer and now prefer to pay a similar price but already have the vehicle. Then there are the people who are looking for vehicles worth nearly a million pesos. They are highly sought after but are actually very hard to come by, at least the ones in good condition. They are vehicles that you have to take a good look at how the mechanics are, the air conditioning. You have to evaluate them well because otherwise it will require a lot of repairs and the price can skyrocket, ”he explained.

“A dying industry”

In May, 138,552 used vehicles were sold in Argentina, an increase of 42.5% compared to the same month in 2021 (97,226 units). But it was warned that the growth is reduced if the numbers are compared with April 2022 (130,364 vehicles), showing a rise that reaches 6.28%. Meanwhile, in the first five months of the year, 648,575 units were sold, an increase of 1.31% compared to the same period in 2021 (640,208 vehicles). “We cannot take the rise in used car sales in May as growth because we have been decreasing volumes year after year. It is just an index that we hope will continue to grow continuously and considerably,” said Alberto Príncipe, president of the Automotive Chamber of Commerce.

“Today we find ourselves with a dying sector, which is using all its experience and imagination to reinvent itself to new forms of sale and not go to the extreme of downsizing its structures again, endangering jobs,” said the manager. “We know of the will of the government so that this does not happen, but we do not envision an important change in the short term to the extent that the country’s macroeconomic situation does not improve,” said Príncipe.

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