Cars 0 km: in a weakened market, offers begin to reappear

Concessionaires and terminals begin to have greater flexibility to offer promotions.

The automotive sector began the year with a strong upturn in sales, from still very low levels, which was reflected in most brands and in almost the entire country. In part, the improvement is due to the growth in the supply of units, which, although still limited, is beginning to give some room for maneuver to develop new business strategies.

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In a virtual tour of official dealerships of the leading brands in the market, Infobae detected different offers and benefits that are somewhat reminiscent of the movement that could be observed years ago, before the arrival of Covid and the global production crisis. To have a reference of what is happening in the general market, it is useful to review what is happening in the five brands that sold the most in the first month of the year.

In various Fiat dealerships, for example, the Cronos is being offered with 12-month financing and a 0% rate. Up to $1.5 million is financed and in some cases the first two “services” are given away at official workshops.

Financing is offered for 12 months without interest and free first services

From different sales points they clarified that the rate is subsidized directly from the factory and that the promotion is only applied to the model with the greatest availability at present.

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Toyota, for its part, has the Hilux and the Etios as its “workhorses.” In this case, there are few dealerships that show innovative offers, but in the case of the Etios there are points of sale that are offering it with CNG equipment installed direct from the factory, with a five-year warranty (car and equipment) or 150 thousand kilometers traveled. In addition, an 84-installment payment plan is offered for the Corolla Cross Hybrid.

Market benchmarks assure that they would sell “much more” if they had a greater supply available, limited by the lack of imported components (NA)

Regarding Volkswagen, today third in sales, efforts are being made to ship two models in particular: the Taos and the T-Cross. Some dealerships are offering a 100% discount on delivery costs. In addition, agreed delivery is offered in the first mentioned model in installment 6 (for savings plans) and in the T-Cross in installment two. In addition, for those who opt for “direct sale”, they can access some financing plans at a 0 percent interest rate.

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In Ford, for their part, there are some official houses that are offering a $150,000 voucher for delivery costs and the reimbursement of the first two installments of savings plans for different models, for those who adhere to automatic payment by credit card. There are also some spatial financing plans for the Territory. Some concessionaires sell it in 24 fixed installments, with immediate approval and without banks, with a total financial cost of 91.75% per year. Others sell the Maverick in 120 months, with a 50% discount on the first six installments.

There are some official houses that are offering a $150,000 voucher for delivery costs and a refund of the first two installments of savings plans

The fifth best-selling brand, Peugeot, also has special offers to encourage sales of some particular models. In different dealerships in Buenos Aires, the 208 is being sold with the key-by-key delivery system (used by 0 km) and financing with a 0% rate. In cases of savings plans, agreed delivery is offered in installment 12, both for the 208 and for other models.

In the same way, many other examples can be found in the other brands that operate in the Argentine market. There are models that have bonuses of up to $600,000 and dealerships that give the possibility of financing payments in 12 months, they are subsidized rates of between 0% and 11.9% per year, depending on the case.

As you can see, special offers and promotions are beginning to appear, but the truth is that they are doing so little by little. In other times, such as in 2013 and 2017, when the million units sold were close to -between cars and commercials-, the “wars” of offers were much more intense and generalized to the models.

From the market they assure that more cash sales are being made than usual (NA)

Consulted sources from different concessionaires agreed that the difference with those years does not lie today in demand -which continues to push despite the drop in purchasing power- but in supply. “In some models the delivery of the market has been normalized, but in many others it has not. If we had more cars, we would sell much more”, they highlighted.

They also highlighted industry leaders that in previous years the terminals set much higher sales targets, which forced the concessionaires and the factories themselves to devise ways to attract buyers and take them away from the competition.

“Today, everything that arrives is sold (in the entry-level models), so there is not so much need to look for ways to seduce buyers, although there are some specific models that do require a certain incentive,” they pointed out from a brand of European capitals.

Rubén Beato, General Secretary of the Association of Automotive Dealers of the Argentine Republic (Acara), recalled that today the size of the market is equivalent to a third of the years of record sales. “The sector is very calm. It is a market of about 420 thousand cars. We don’t know what will happen between now and the end of the year, but we are in that range”, he indicated.

It is a market of about 420 thousand cars. We don’t know what will happen between now and the end of the year, but we are in that range (Beato)

“There are models for which there is a good supply, but in the majority there are still problems. That is why the level of discounts is minimal compared to other times. Offers are only being worked on in those cases in which the terminals deliver many cars and the dealerships need to sell them quickly”, pointed out the Acara leader.

The other big problem, for Beato, is the lack of financing. “Some terminals are providing credit facilities, because there are no affordable interest rates in the private sector,” he stressed.

During the pandemic, the level of sales and production was minimal (Europa Press)

From the dealerships consulted by Infobae, they agreed to highlight that the financed models are the ones that are making the difference in direct sales. “There is very little that is being sold with bank rates without subsidy from the terminals,” they pointed out.

In any case, both Rubén Beato and the representatives of the dealerships consulted by this means agreed that the best sales opportunities are occurring in cash purchases. “Many people are paying cash. Good discounts are offered for cash payments and those buyers who have dollars in hand, find accessible values ​​of models that are quoted in foreign currency”, stressed the Acara reference.

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