Thursday , January 28 2021

Abstain in the 0 km car sales: why is it a good time to buy cash and not take a debt

Yes, we already know: price lasts 0 km up in a wild way last year, as well as insurance maintenance, fuel, customs, parking and decision-making costs, but, if we are moving away for a while, it is not unreasonable to do that it's a good time to buy cash.

A sales of 0 km had been contracted in Argentina during January by 50.4 per cent compared to the same month last year, when there was an historical peak of a patent (120 558). Yes the steepest decline of year to year for the sector in percentage terms in more than ten years.

I 'm best off, The stock accrued in the dealerships is about 300,000 units, as confirmed by the country manager of the PSA Group in Argentina, Gabriel Cordo Miranda, in mid-January, in press releases.

With that amount of cars to sell, at the sales points it grows the need to sell the redundancy value. And that's why "price gestures continue to continue", as Cordo Miranda is estimated. With "gestures" it refers to the discounts, accordingly, some dealers reach up to 40 per cent for cash purchase.

"That's the great bonuses that I think, it will not happen the year. It will take place in the first few months, but again, the economy would not expect to see such aggressive reductions as we can see today, "said Abeceb's senior consultancy sector, Franco Roland, analyst at TN Autos.

According to Roland, it is clear the most convenient way to access the 0 km in this economic context: "For those who think about buying a vehicle during first half of the year, The best option is to buy cash"he said.

Of course, after the heavy weight loss in 2018, fewer people can reach the seller with a full sketch of old fashion bills. Especially if we are considering the price of the most "cheap" cars sold on the market: $ 430,000 to Chery QQ, $ 438,200 to Nissan March and $ 478,000 at Volkswagen Gol, all in its smaller equipment version.

"If you do not have the money, the best option is a financial placement term to grow that money. With a positive real interest rate, that means a favorable impact on the value of capital and conservation in a more liquid environment. This would then allow you to make those funds to access the purchase in a more timely context, "said Roland.

Experts consider that this is not the best time to take a debt when it gets 0 km away. The average financial terminal referral rate for loans is about 30 or 40 percent. And in the banking segment, rates are closer to 60 or 70 percent, which really increase the purchase.

Coincident, during last months of last year, according to the Association of Argentine Republic of dealers (Acara), sales of new cars have been discounted for funding up to 45 percent. Savings plans, the most common way in the country to reach zero, has fallen to 57.5 per cent in November.

In terms of the savings plan, which significantly affected the price increase last year, Roland said: "It's a valid tool for people who do not have the money The investment culture in the capital market, or that is not banked and requires a deciplinary tool of a proportion of their income for paying the fee ".

"I think it's convenient not to take a savings plan Until we have much more consolidated macroeconomic stabilization for this year, which will be electoral and may not be volatile, "said Roland.

Abeceb's analyst came to the conclusion: "If the quota / income ratio is not very secure, the best option, especially since this year, may not be very frightening to buy vehicles and & # 39; r the fact that the savings plan has a little liquidity, it may continue to play against capitalization and good durability"

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