After low sales, car prices begin to fall

After low sales, car prices begin to fall
After low sales, car prices begin to fall

The price of cars began to fall within the framework of a sharp drop in sales: so far this year, 0km vehicles have fallen by more than 30%, according to data from the Association of Automotive Dealers (ACARA).

04/01/2024

In the month of March, this decline deepened, with a drop in sales compared to the previous year of almost 37%. In dealerships you can already find discounts of up to 25%.

A week ago, several brands came out to offer “zero rate” plans, but for amounts between five and 12 million pesos maximum, for units whose list price is between 20 and 60 million pesos.

Pickups are the most affected

Toyota notified its dealers that in April they will maintain the same prices as in February for the Hilux and in other brands there are discounts at the counters.

If the estimates of private consultants are taken, the accumulated inflation in the two months between February and March would be around 26%: that is, in fact, the implicit price reduction that Toyota Argentina has just communicated to its network of dealerships.

Currently, pickup trucks are the models most prone to sales. The most economical version of the Volkswagen Amarok, the 2.0 TDI double cabin, had been available at the beginning of March at a list price of 52 million pesos.

By the middle of the month, when customers were scarce, a group of dealerships began offering them at $47 million, 10% below.

Another locally manufactured pickup, the Renault Alaskan Comfort 4×2, has been published at a list price of 38.3 million pesos since the beginning of March. But in several dealerships of the rhombus brand you can get it for $34.7 million. Again, 10% below list price.

Staff cuts and few sales

Renault announced the loss of 270 contracts at its Santa Isabel factory due to the drop in sales in the domestic market. Toyota also opened a voluntary recall program, although due to the drop in its exports, while General Motors stopped its production for two weeks due to the exchange rate.

This collapse in sales began practically with the first days of January, but until then the situation was the other way around; There were buyers with dollars in hand and the dealerships did not want to sell to them, because they did not have a replacement price.

But once the Government released prices on January 25 (it practically doubled the internal tax floor and thus enabled increases in list prices), the automotive terminals applied increases that buyers did not validate.

They had already accumulated 40% since the end of November and with the price increases at the end of January and beginning of February, some list prices reached a 100% increase in just over two months.

Now, the opposite is happening: dealerships have been juggling sales for 60 days.

The best-selling model of 2023, the Fiat Cronos, remains the one that tops this year’s ranking. But so far this year, its sales have fallen 38% compared to the January-March 2023 period.

The Cronos is sold mainly because many units continue to be delivered as part of the previous savings plans that people bought when there were no cars. But if someone comes to pay it in cash, we give them between 10% and 12% off,” added another dealer of the brand.

The impact on used cars

The prices of used cars are also falling, but to a lesser extent. Unlike the zero kilometer market, where dealerships have sales goals agreed upon with the automotive terminals, in used agencies the sale price is validated by the owner of the agency.

“No one is going to take a used model at the price that is quoted today by the insurance or the patent, because they are prices that are very close to the real price of zero kilometer,” said Alejandro Lamas, secretary of the Automotive Chamber of Commerce (CCA). .

“There is still a tug-of-war with customers who bring us their units. But clearly the used ones are also going to have to adjust downwards,” he warned.

Source: Ambit

 
For Latest Updates Follow us on Google News
 

-

PREV cheats in video games can cause cybersecurity problems
NEXT Banco Falabella raises S/ 60 million in the stock market, at what cost? | Banks | Certificates of deposits | SMV | YOUR MONEY