The sale of 0 km to Mendoza fell for the first time in two years

The impact of the dollar on the price of 0Km caused the sale of cars in Mendoza to fall by 13.3% in June compared to the same month last year and the year before. country level -18%. With these numbers, is the first drop in two years.

This behavior is related to the increase in prices. Up to now this year, in 7 months, the units have increased their value by almost 35%.

From January to May, they increased on average by 2% and then in June they jumped to 15% and in July They changed the values ​​of vehicles by 10%.

These percentages increased above inflation which in Mendoza is close to 16.3% although by below the devaluation, close to 50%.

The number of patented vehicles in Mendoza in June was 2,523 which represents a decrease of 13.3% compared to the same month of 2017, when There were 2,912, reported the Association of Automobile Dealers of the Argentine Republic (Acara).

And by badyzing June against May, the decline is even higher -26.3% . In May, 3,421 vehicles were patented, while last month they were 2,523 .

The total of the six months elapsed of the year gives a figure of 19,528 units, which confirms a rise of 13% in the comparison with the 17,224 vehicles accumulated last year, according to Acara.

June comes to break the good development and sales that vehicles had zero kilometers, both in Mendoza and in the country.

Reasons for the decline

Gerardo Lorenzo Holder of Lorenzo Automotores, mentioned that June was a pivotal period given 5 months of significant sales.

"The 0-kilometer price increase, dollar volatility, uncertainty and high funding rates have led people to track both planned purchase and consultations. "

] He pointed out : "The decline in sales should also reflect the panorama we were in. We had very high sales volumes, and we expected the year to be would end with more than 900,000 units.That is why this decrease should also be compared to a number that was very good. "

In the case of the Fiat brand," the dealer has increased to 25% this year, however, it still does not make the adjustment in July, it will be necessary to see how much is left of it ".

The best-selling car of this brand is the Fiat Argo Drive which has been on the market for about 6 months. In January 2018, this car was at $ 300,000 and in June 2018 (current list) $ 370,000. In this case, it leaves an increase of 23%. Then, the second best-selling car is the Fiat Cronos. For this unit, the price change was 19%, from $ 321,000 in January to $ 383,000 in June.

Carlos Segura, general manager of Honda and Peugeot in the south of France, agreed in the panorama with his colleague, although for the director the people are much more cautious in July than in France. ;in June.

Expectations are not very promising. People speculate or are afraid to enter, traffic in the rooms is very small. At our dealer, sales have dropped significantly. Based on the badysis we are doing, we believe that it is closely related, beyond uncertainty, to a price issue, "Segura said.

In this case, the mark has an increase of more than 30%. "Between January and May the increases were 2% monthly, then in June they increased by 15% and now they have updated the list in July 9%", explained the manager who specified for example one of the best-selling cars. Peugeot is the 208 Active which rose from $ 321,400 in January to $ 408,500 in July, which represents a 27% increase and 2008 Active11 from $ 385,500 to $ 511,600, more than 33%.

In addition to the price, which does not contribute to the reactivation of the market and the decline in sales, it is the credit conditions. "Rates are high, higher than 36%, so with these percentages, people do not encourage us to enter and buy a car with financing, in our case we take promotions and very attractive prices, however, this does not happen, we note that the consumer is cautious and prefers to save money to make an investment, "said the director. Peugeot in the south of France.

P For his part Sergio Montanaro, General Manager and Financial Yacopini South, mentioned that the macroeconomic uncertainty has led to a decline in sales of zero kilometers.

"This is durable goods and this is not a short-term decision, in fact, it is thought of and long-term.This is why people decide to postpone the sale until they see what is happening with the national and provincial economy.However, what we observe is that the more falls are sales with financing, because of the high rates – over 40% – Despite this behavior, cash sales do not have the same evolution.People who have dollars decide to make the sale because They understand that cars are still below – between 10% and 15% – the increase in the currency.

On the outlook has indicated that it will depend on how the dollar and rates continue

In this venture – counted Montanaro – vehicle prices rose by almost 35% and in July all brands have already changed the General Motors 10%, Nissan 7%, Volkswagen 6%, all in average values.