The 23rd Fenabrave (national auto dealer association) annual congress in São Paulo saw 100 companies and national and international bodies take up almost 107,640 sq ft for side exhibitions. There were around 3,000 attendees and visitors during the event’s three days.
Among the many issues discussed, one drew more attention than any other, what will happen in 2014 after fiscal stimuli cease on 31 December. Also, new safety rules (mandating front airbags and ABS brakes) from 1 January will affect prices of entry level models, the market’s crème de la crème.
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Current and future strong competition should help keeping prices levelled (inflation discounted). Currently, 15 makes produce in Brazil; there will be 23 by 2017.
According to economist Ricardo Amorim, in 15 years prices slid from 55 minimum wage equivalents to less than 40. This explains, to a certain extent, the sales boom in the last eight years.
Internet experts outlined that dealing with such a mass of information is challenging for both buyers and sellers. Up to 12 sources are available for consumers, ranging from tips from an acquaintance to traditional and digital media, not to mention dealerships themselves. Plenty of information dispensed by internet is a true, valuable tool: 70% of shoppers make use of electronic searches from generic to specific options.
On the other hand, used vehicles will play an even more relevant role in the coming years. Dealers and automakers will increase specific actions and offerings, as pointed out by some speakers. In total, used vehicles outsell new three to one each year.
