Car sales are slowed by higher prices and higher rates

The sale of cars suffered in June the first autumn after a long period of growth and despite the close of the best semester in history.

Already among dealers the collapse, product of the uncertainty that was generated in the market with the rising dollar, which rose by 35% on average in two months , which ultimately impacted the values ​​of the vehicles.

As a result, June closed with 17% less than the same month of the previous year, and also recorded the same decline compared to May of this year.

The problem is aggravated since, up to now, the bonuses, reductions and financing

First, it is the terminals that have admitted that They could not continue with "crazy" discounts in list prices (although that's hard to remove); and now those who suffer the consequences are the sales with financing which, in recent years, had become the "warhorse" of the sector, with great offers at a rate of 0%

. the Association of Automobile Dealers of the Argentine Republic – ACARA -, in June the first fall was felt with a minimum of of 12.3%, equivalent to 32,972 cars financed; while in the accumulated year reached 263,393 garments

It was the first month of the year when recorded a fall, since in May it was little increased but still had a positive result with 4.6% compared to the same month of the previous year, reaching 41,067 garments.

With these results, in 2018 sold 51.2% of the cars in cash, 47.8% with clothing and a 1.1% with leasing. Fiat and Jeep are the brands that have made the most progress, followed by Chery and Iveco. The rest is negative in the year.

Savings plans are not doing well either and subscriptions fell 26.7% in June compared to the same month the year before, when they rose 39.2% . cent

This minimum is already felt since April, when the number of people who enrolled in a savings plan dropped by 2.9%; in May, the decline reached 14% in May and added 10 more points

The problem is that savings plans although they have no interest on the quota they go to update the values ​​ at the rate of updating car prices, and over the last few months the adjustments have exceeded 20 percent.

In this way, who pays plan, will have seen how the monthly payment has increased significantly in recent months, and at this rate will continue to increase until the market finds the balance.