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Automakers of 0 Km bet for the second hand cars in order to improve sales

The new unit sales fell 27% this year and the general automotive brands observe the business of second-hand cars with little use, copying the model of the premium brands.

Throughout the year, 0 km car dealerships sought alternatives to boost sales. The tax rise, rising prices and inflation caused that the influx of people at the showrooms were decreasing every month, something that could not overcome the official ProCreAuto plan ( Government plan to boost the sale of new cars).

From this fact, the factories began to look for alternatives, variations of the same business to catch up. Thus came with the second-hand cars, with which it was possible to implement successful experiences with low investment cost. The first to come forward was the French Peugeot which has just launched a platform of "used selected" getting into full selling of second-hand units. Thus, the local subsidiary of the French company seeks to "promote" the used unit sale that meet certain requirements in order to make them "selected”, through its dealer network.

The brand aims to move the stock of second hand models with its dealers provided that they have less than five years and a maximum use of 120,000 kilometers antiquity. "The units are always ready to be transferred," explained Peugeot through a press and also "offer various financing options."

The bet by a brand of 0 km into used cars not only has to do with this market which didn´t have a pronounced drop in sales as the 0 km. The used cars accumulate a decrease of 11.5% in 10 months against 27.7% in the same period for new ones. It has to do with generating movements in two ways.

The first way is related to the age and mileage requirements. The model that meets these standards can be delivered as part of payment of a 0 km. The second is that the second hand car is a market that generates updated prices and a rearrangement of the circumstances much faster.

The fact of selling used cars by an automobile is not new, although it is for a brand considered among the "generalist" called. For some time the premium automotive bet on this market as another business unit. Here's how Audi, Alfa Romeo, Mercedes Benz and Porsche since a long time ago advertised in their websites such products. "Since they are high-end cars, and is not a market as big as the general one, here the business has to do with the decrease of the cost of entry to those who are not there and, for those who are already customers, is another service to shift the car model "said a source in the premium segment.

In this sense, the German Audi was one of the first to offer this service called "unique and have it since 2003." ¨We have five dealerships within the program and the rest is in the process of entering "explained from the brand. Like other premium automotive, systems lay in extensive testing of the used unit to be sold.

But were other brands who bet on that segment too when the government imposed the rule of "an imported dollar, a dollar exported", like BMW case, which grow in selected second hand cars to maintain its dealer network.

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Source: El Cronista Comercial Newspaper

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News from Argentina

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27h November 2014

Thai Trade Center, Buenos Aires

By M. Fernanda López Ortiz

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