Tips on how to sell cars in times of crisis

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During a period of economic crisis, the used car market can take advantage of the moment to boost sales with numbers and some tips on how to sell cars in times of crisis .

Crisis as an opportunity for the used car market: how to sell cars in times of crisis.
According to the National Federation of Automotive Vehicle Dealers Associations (Fenauto), in 2019, used car sales increased compared to 2018 : 14,592,691 were sold against 14,275,382 – an increase of 2.2% . Of these sales, used vehicles with an “age” between 4 and 8 years represented a total of 39%, with 5,695,363 units sold ; newer vehicles (0 to 3 years old) were sold less – only 2,257,789, 15% of the total.

selling cars in times of crisis
This data shows the increase that occurred in relation to previous years: in 2018, for every 1 million zero-kilometer models that were sold, 4.7 million used units were purchased.

According to data from Fenabrave (National Federation of rcs data uae Vehicle Distribution), sales of pre-owned vehicles — cars up to 3 years old — fell by almost half from January to April 2018. In the same period in 2017, 1.7 million units were sold, while in 2018 the number fell to 888.5 thousand, a reduction of 49.6%.

In 2016 and 2017, pre-owned vehicles were the most traded “age group” among used vehicles. Currently, the category is in third place, losing to cars aged 4 to 8 years, followed by those aged 13 years or more.

Two factors explain the decline in sales of used cars in recent years. The first is that the high price of these vehicles has led some customers to return to buying a brand new car. The rise in the price of used cars has also led many consumers to switch to buying older used cars.

The increase in sales of used vehicles in 2019 compared to previous years occurred, according to Fenauto , because many Brazilians were unable to make a down payment on a new car or finance a new model , who have high installments and long payment terms and, to fulfill the dream of owning their own car, they look for semi-new or used cars.

The scenario for the sale of used vehicles
In 2019, according to Fenauto, the used vehicle sales market closed with a positive balance: 4.6% - in January 2019, there were 1,217,360 sales and in December of the same year, 1,292,174 cars were sold. The same balance is also visible in the comparison between January 2020 and January 2019: positive at 4.6%.

According to the Federation, the “age group” of best-sellers in January 2020 were: “young used” (4 to 8 years of use), which accounted for 459,358; “older” (13 years or older): 293,335; followed by “mature used” (9 to 12 years), with 269,443 sales; and, lastly, “pre-owned” (0 to 3 years), with 195,224 sales. In 2018, the data confirms the leadership of “young used” vehicles: those aged 4 to 8 years led with a 37% increase and around 1.8 million units sold. This type of automobile was also the most financed in March 2018, followed by zero-kilometer vehicles and those aged 9 to 12 years.