Why are the dealers selling some cars at discounted prices ?

there is an urgency to the dealers. After two months of closure because of the confinement, the automobile market is literally off, with a decline of 88% in April. Since 11 may, these business have opened their door, with a large stock of cars to sell.

also read : automobile sector as a whole in expectation of the sector support plan

to address this, a solution is imperative : the practice of discounts not previously available. 30% on some cars, like the Micra at Nissan, the offset of the first monthly payment as at Citroën, or even premium of € 2,500 or more for the purchase of a vehicle in exchange for another one (which is set up by Peugeot). In fact, brands and dealers come almost to sell off some of their products, as to get rid of it.

For cause, they need to get rid of overstock. Two months stop sale and at least 400.000 new cars are now available for sale. This is nearly 10 billion euros. Today, the stock of new vehicles at the manufacturers represents one-third of the annual production in France. "Usually, the inventory of car dealerships, it is between one and four months", explains Christophe Maurel, dealer, and president of the business of the dealers in the CNPA (Centre national des professions de l'automobile).

The importance of the market opportunity

"These stocks have not budged in two months, and it is necessary to sell", he explains, adding in parallel, because of the fall production, there will be, however, a time lag of two months on the stocks to come. And this surplus is expensive, confirms the professional, since it is necessary to take care of the maintenance, insurance or parking. Especially in the paris region, where prices are higher.

read also : 2020, year that lost to the car

Since may 11, a glimmer of hope has emerged among dealers, who feared that date. "It was either one or the other", explains Christophe Maurel. Include : recovery or collapse. Today, it ensures that there are few cancellations of orders, enough to take a positive assessment of these first days, despite the continuing fragility of the market.

"For us, it is necessary that the used market is fluid, because about 60% of sales are made by a vehicle," says the expert. He explains that with an estimated 500,000 vehicles on the market, in addition to vehicles that will soon be taken against the purchase of a new car, it is precisely this sector which would function to help the flow of the surplus.

It is for this reason that used cars are particularly targeted by the discount. "A car that is registered since October, even with zero kilometres on the clock, is still a used car," says Christophe Maurel. It is therefore the object of discount, sometimes significant, because the value of these cars falling day by day. Dealers and brands then have any interest to sell quickly.

On the other hand, a vehicle in the store since 17 march, but not registered, has not taken a ride in two months. It is a priori not concerned - or to a lesser extent - with these discounts. Christophe Maurel further recalls that the automotive market is "very aggressive", which leads naturally to a strong competition in prices. All this has a cost to brands, such as dealers. On one hand, the value of the vehicle is lower with the rebates, on the other, the margins are melting. "If we come back to is that it is necessary well to sell," concluded the dealer.

The editorial team conseilleL'car struck by lightning by a crisis historiqueSujetsconcessionnaireAutomobile19 commentairesPlume The Ventle 22/05/2020 23:52

The car has never been an investment juicy but finally all the new cars sold must be depreciated, so buyers must require a discount of 50%.

Theodul Grafougnassele 22/05/2020 23:39

I saw a vw Golf brand new 0 km - 40 % in an agent : 19 000 € 32 000 €

trublion99le 22/05/2020 23:20

long live electric cars, with their batteries polluting lithium, which is predominantly chinese, their high costs inversely proportional to their autonomy.

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