Car dealers fear that a lower-than-expected influx of agricultural dollars will cause sales to fall even further.

Car dealers fear that a lower-than-expected influx of agricultural dollars will cause sales to fall even further.
Car dealers fear that a lower-than-expected influx of agricultural dollars will cause sales to fall even further.

The 0 km cars sold in the agricultural areas of Argentina still depend more on discounts than on improving the purchasing power of customers

The drop in sales in these first three months reached 30% and has generated all kinds of incentive campaigns to buy zero kilometer cars. There is bonuses from factories to dealers and discounts that official agencies also do to improve sales. Fixed costs, ranging from employee salaries to the electricity bill, require very delicate engineering that combines paying the bills with the profitability of the business itself.

“The reality is that the rebound that is being seen this month has nothing to do with improved demand but rather with the discounts made by brands or dealers. AND These discounts cannot be sustained for too long because they are based on many losses, mainly for dealers and to a lesser extent for factories. Financing tools helped a little, but it is not a genuine rebound due to improved purchasing power. “It’s not like that,” a businessman with several official dealerships told Infobae.

“Last year They were filled with money with the surcharges who were paid and did not participate in those extraordinary profits to the factories. If now they have to lose a few months, they shouldn’t complain,” was the response of an important terminal executive when asked about the discount policy that brands use to boost sales. “It is a topic almost exclusive of dealers. They are the ones who regulate their prices. Just as last year they charged what they wanted because they had more customers than cars, now they will have to charge what they need to sustain the business. “They are suggested prices, they are not mandatory prices,” he concluded.

Pickups are the top-selling vehicle in rural areas, although a general economic improvement will boost new car sales overall. REUTERS/Mike Blake

The great expectation is placed on the strong inflow of foreign currency expected from the countryside with the harvest that has already begun to be lifted. However, consulted by Infobaetwo large businessmen who have official dealerships of several brands in the agricultural area of ​​Santa Fe and Córdoba, warned regarding a business that will not be the one imagined.

“The area is no better than the rest of the country. The reality is that the field is not liquidating everything that was expected. In fact, there is already news that says that there are silobag sales record, and that is because the agricultural sector is liquidating only what it needs to cover expenses or pay its debts and nothing more. This happens because The international price is low and they also see the official dollar lower than it could be. Then they tell you that they prefer to wait a couple of months and earn more,” warned the owner of several dealerships in the province of Santa Fe.

“The small producers do, they are selling and that is going to generate a little more movement, but it is not the great rebound that many expected thanks to the harvest. At least, from what we talk to clients in our area, there is not going to be a big liquidation or a good influx of dollars, and That is worrisome”said the other businessman who especially sells vans in the province of Córdoba.

The “price war” is a reality, but there are also many opportunists. Ensuring the seriousness of the seller is essential to avoid scams

Meanwhile, it is a good time to buy taking advantage of so many discounts, bonuses, additional services at no charge, free insurance for one year, subsidized patent, zero-rate financing and other offers that users can find. But you have to be very careful too. If a car has a list price of 40 million pesos and is offered for less than 30, you have to be very sure of the seriousness of the seller.

“There is everything. You have to be sure before entering into plans that offer security. A lot is done with fallen savings plans or simply with publications that They only look for ‘clickbait’ to interest and then set up unclear deals”, they responded from an automotive terminal. “It is common to see publications of a car with a photo of the full version and the price of the most basic version or things like that. We brands have to be very attentive to this type of operations. Yes, it is a good time to buy, but you have to do it consistently. Nobody is going to give you a car.”

 
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