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Monday, August 24, 2020

Car financing falls more than 25% due to Covid-19

The financing of cars and the sale of new cars has fallen due to the health contingency.

·         Agency financiers are the ones with the biggest share in the market.

·         The situation is negative, however, organizations are making efforts to provide care remotely.


Car financing falls more than 25% due to Covid-19

As indicated by the Mexican Association of Automotive Distributors (AMDA), in the first five months of the year 237,219 new vehicles were sold through some type of credit, this represented 63.5%. However, 83 thousand 598 small units were sold contrasted with last year, that is, it was a contraction of 26.1%


Brand finance companies and Auto Insurance providers, which are credits provided directly by the agency, had a participation of 67.8% with 160,854 vehicles.


Banks spoke to 28.8%, financing sum of 68,231 units. While Self - financing companies were left with 3.4%, about 8 thousand 134 new cars.


H2: Imports also had losses


The Association's data demonstrates that from January to May of this current year, 54,990 units were imported, a diminishing of 15.8% compared to the same period in 2019. In percentage it is comparable to 15.8% less.


On the other hand, this figure represents 14.7% of the total of new cars sold.


Sale of light cars in June

During the 6th month of the year, 62 thousand 837 new light units were advertised, but like imports, the rate was lower compared to last year, since the decrease was 41.4% rather than the 106 thousand 762 units that they were sold in June 2019.


Making a collected from January to June of this current year, 436 thousand 445 zero kilometer vehicles have been placed, 31.85% less than the same period of 2019, since as indicated by the Association, in numbers this represents a drop of 204 thousand 65 vehicles.



The outlook for the automotive sector is uncertain due to the coronavirus


As indicated by the words of Guillermo Rosales Zarate, deputy director of AMDA, the certainty of both businessmen and clients is at the lowest levels. In the same way the loss of employments.


The situation could continue to be negative because the guidelines of the health authorities that have differentiated the contingency traffic light by entities, and even by regions in the similar states.


With the goal that only some sales floors of certain elements have been operating as the case of Jalisco, Nuevo Leon and recently the capital of the nation. While the tasks of states such as Puebla and Morelos are still closed, coupled with the fact that the traffic signal may change back to red depending on the outbreaks of the virus.


Thus,, the automotive market has changed the way of providing its service with remote attention.


For example, Kia has a microsite to choose models and configure them from the comfort of home. The same with brands such as Peugeot, Nissan, Hyundai, among others.


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