Car sales stagnate due to uncertainty

With the rise of the dollar over the past two days, Car sales have stopped. According to the advice of the sources Country, The reference is “scarce” and there is no similar behavior, although a currency price above $330 adds a lot of pressure and uncertainty: There are merchants who sell and others who do not; And it’s the same for customers: there are people who buy and others who prefer to wait.

The paralysis and the lack of references occur both in the 0 km segment and in the used car segment.

“The volatility of our currency was a Due to which the operation stopped. Why? Because on the supply side, those who have the product do not know at what price they must sell it, nor will they be able to replace it. encountered this problem, They close the sale. On the other hand, the one who buys usually has savings in dollars and as he sees it $100 skyrocketed in 20 days he prefers saving to try and get a car as cheap as possible in terms of dollars“, explained to the media Alejandro Lamas, secretary of the Automotive Chamber of Commerce (CCA).

“Everything is so weird. There are dealers who sell and others who don’t. But the problem is the pesos: if you sell and you don’t know at what price you will be able to replace the car, then you don’t have the space to channel them… and then nobody will want to sell. It will depend on what the terminals will do,” said a businessman who owns dealerships of different brands.

Of course, this is not a general trend and there are exceptions. “The wheel never stops at zero,” as Lamas explains, and sales haven’t come to a complete stop, even in times of a pandemic. less now. “You always try to do something because You have to pay a salary, rent And even some people have to sell their car for personal reasons. people need to move on“, assured Lamas.

Sales halted due to economic uncertaintyShutterstock

Another consequence of high uncertainty is that There are no value references. As the dealers explained, the market is starting to show pronunciation distortions And different variants for models with similar mileage or a few years difference. Contrary to what happened in 2013, where this time there was an exchange rate difference and the stock the two problems come together and provoke Sales freeze and overpricing on the second-hand market.

The negative effects of import restrictions and the rising dollar also extend to the auto parts sector. Just a week ago, the Argentine Chamber of Electric Accumulator Manufacturers (CAFE) sent a letter to the Central Bank. early battery drain warning; A statement from an auto parts dealer has gone viral where Warned his customers that he would stop production for lack of dollars and the Association of Component Manufacturers (AFAC) He expressed his fear of a possible stoppage of production.

“Companies are already consuming inventory; There is an impact and certain sectors do not produce certain things,” he warned. “When we stop receiving material, we run out of stock and then we have to stop production“, he completed. In this case, import barriers play a determining role that accompanies a rise in the dollar in a “quasi-pandemic” scenario, as defined by the region.

Auto parts manufacturers are shocked and fear that production will soon stopSantiago Filipuzzi – The Nation

Little is known about what could happen and it is difficult to predict what the market will be in the short term. “Windows of greater opportunity will open but Today there is a void and a scarcityWhatever happens to currency and import barriers, the global problem increases by 10%,” the Lama concluded.