One of the undesirable consequences of the growth of the dollar in Argentina was the increase in the cost of zero-kilometer cars and its inevitable transition to price savings plans, which put control of several buyers who were immersed in this system.
Thus, the sale of cars on savings plans will be closed in 2018 with a fall of 7% compared with the historical average level of patenting, as already mentioned, due to a sharp rise in car prices due to the devaluation of the weight against the dollar.
From the Association of Car Dealers of the Argentine Republic (Akara), they came out to notice that in recent months the reduction in sales has been verified using savings plans by increasing the cost of cars.
In the case of those who have already proposed the inconvenience, this is due to the sharp increase in quota prices, because the securities are subject to updating the model before the final settlement of the garment.
In other cases, such as those who are already able to access a vehicle of 0 km, it passes through the price difference that exists in relation to the official list value that is used for the plan, and large discounts on what can be obtained by purchasing cash .
In Akara, as a result of this panorama, they believe that there is a delicate inaction on the part of car companies and that it “requires to act quickly with options such as lengthening the conditions of purchase, expanding bonuses for saving plans and raising rates to long-term. "
According to Acara directors, the previous savings plan is an anti-crisis product that “does not fulfill this function due to the impact of devaluation and inflation” and that because of this, in 2018 this sales channel will fall about 7% of patents from 35% of the total to 28% at the end of December.
Looking at 2019, Acara claims that the movement of economic and financial variables, adopted in the middle of this year, caused a sharp drop in sales, and as a result, the sector accumulated a stock of 260,000 units without a sale between concessionaires and terminals.
This latest issue, according to the managers, “reflects sales in the first 5 or 6 months of 2019”. This excess forced the automakers to adjust production cycles until the car market stabilizes, so that the advertising prices for cars will be increased during the first months of 2019. Because of this, the prices of cars will rise again until the second half of next year, until they reach their “equilibrium price in dollars.”
units 0 km. It is estimated that this is an accumulated stock of vehicles for sale. Will the promotions continue?