It may have been the pandemic, bonanza or boredom, but in recent years Uruguay experienced a boom in the car market. According to data from the Automotive Trade Association, in 2022 55,056 0 kilometer units were sold, but what impresses even more is the used business.
According to Brian Lempert, director of Grupo Fiancar, the estimate that is handled within the category is that last year some 120,000 used cars were sold. This trend led the company to inaugurate a new store in Montevideo Shopping aimed at this specific public.
“Grupo Fiancar has been working in this category for more than thirty years, but we have never seen anything like this, the market is really on. The phenomenon has to do with the shortage of 0 km that occurred last year and the economic recovery. When people do well, they look to change their car for a better one, whether it’s new or not, and that’s how a domino effect starts”, commented the director.
Under the motto Rate your car here, at the company’s new premises in Montevideo shopping, located next to the entrance to Tienda Inglesa, they receive the vehicles, check their mileage and complete the appraisal. The objective is to improve the experience and avoid a cumbersome process for the buyer/seller.
“To sell a used car, the client has to publish it in a marketplace, attend to online and telephone inquiries, receive buyers at their homes, wait for the mechanic of the interested party to inspect it and for it to be approved. Then comes all the documentation and finally the parties have to agree on the payment method”, explains Lempert.
At the new location, the client shows up with his car, undergoes a primary state inspection, and is given an initial quote. If it is satisfied, it is reviewed by the company’s specialized technician, and if it is in good condition and with the documentation in order, the business is closed, respecting the initial appraisal.
“We are having a super positive impact. Clients highly value this simplification of operations, which in many cases can be as important as money. We knew that the market needed facilities of this type, and the good turnout confirms it”, affirms the director.
Which used ones sell the most and what is their market value?
Last year, Grupo Fiancar sold 3,500 0-kilometer cars, against 1,500 used ones. In this category, the most requested segment were the models between 8-13 thousand USD, and in particular the city cars. In second place, they tie the segments of 6-8 thousand and 13-15 thousand, where more work vehicles begin to appear.
Lempert affirms that today there is a high demand for pick ups, double cab trucks and utilities in general, and another segment that stands out is that of pre-owned. They are vehicles with up to 25,000 kilometers, which were in great demand the previous season due to the shortage of 0 kilometers generated by the microchip crisis.
Regarding how much a car depreciates, this depends on the segment, but some constants can be pointed out. For example, in luxury models the price falls faster, and it also influences whether it is a traditional brand or not. The usual thing is that the value of a car drops between 10 and 15% after its first year, although in some cases it only falls by 5%.
“The used market has been growing significantly, and as long as the economy remains active we expect it to continue to be so. It is a segment that Grupo Fiancar has been betting on for several years, and this new Montevideo Shopping location allows us to continue professionalizing management, in order to provide the best solution to our customers”, concludes the director of Grupo Fiancar Brian Lempert.