The Used Vehicle Show comes at a good time for the used car market

 

The Used Vehicle Show comes at a good time for the used car market

Image result for used vehicle

The 65 participating companies and the more than 4,000 cars on sale, reflecting a sector that this year will sell 1.6 million pre-owned

MADRID, 22 (EUROPA PRESS)

The Occasion Vehicle Show celebrates its seventeenth edition from May 24 to June 2 at the Feria de Madrid “at a particularly sweet time for the sector of seminuevos”, have indicated the organizers of the event.

That’s right, according to the latest data provided by GANVAM, the National Association of Dealers in Motor Vehicles, Repair and Spare Parts (promoter entity of the event, organized by IFEMA), in 2013 will sell 1.64 million units, that is, a 4 , 1 percent more than in the previous year.

In the Used Vehicle Show, a sector with an important socio-economic role is represented, generating 278,000 jobs and a turnover of more than 95,000 million euros, representing 9 percent of the Gross Domestic Product (GDP) .

Another encouraging fact for the organizers of the event, according to the information of the employer (brings together 4,600 dealers and official services and 3,000 purchases) is that this year it is repeated the historical record of 2.3 second-hand vehicles sold for each 1 new commercialized, “a ratio that allows Spain to overtake Germany, although still below other neighboring countries with more tradition in the second-hand vehicle such as the United Kingdom (3.6), France (2.7) or Italy (2,6) “.

One of the negative notes is that the average age of the car park is 9.5 years, because of the tendency of motorists before the crisis to stretch to the maximum the life of their utilities, when the desirable according to GANVAM would be less than seven years .

The other negative aspect, as denounced by the president of the employers, Juan Antonio Sánchez Torres, “is that 10 percent (160,000 units) of pirated sales, without guarantees and unfair competition with dealers and sales that meet all tax requirements and administrative procedures established by the Law “.

Image result for used vehicle

The vehicle used in the last five years has been gaining ground to the new, to the point of becoming the first option for 73 percent of the Spanish who decided to acquire a used in 2012.

The difficulties in accessing financing have turned out to be a determining factor when it comes to encouraging buyers to opt for semi-new ones. Specifically, last year only 18.8 percent got that funding, practically half of it five years ago (36.4 percent).

Precisely the facilities that can be found in the Exhibition of Used Vehicles, in terms of financing, is one of the factors that contribute to the success of the public of this call, have indicated the promoters of the event.

In the absence of credit, the option of a used car, with a reasonable price and even assumable in a single payment, makes it very attractive. In fact, 71 percent of buyers recognize paying their vehicle in cash and using savings (in 93 percent of cases).

Another aspect to highlight is the high degree of satisfaction of the buyers’ demands, when they acquire a second-hand car, especially when it has been made through a professional, so that more than half of the buyers –the 51.1 percent– are repeat offenders.

In addition, the trend in decision-making has been reversed, which was previously practically always alone, while now, 38.7 percent of vehicles are bought after the appropriate deliberations within the home.

One last piece of information regarding the second-hand vehicle, the effect of the crisis, is that the strong growth in the demand for ‘mileuristas’ cars has determined the increase in their prices, going from an average of 2,740 euros, registered in 2011, to the 3,204 euros that currently cost on average, as detailed in the ‘VO Price Evolution’ Report, prepared by Eurotax, in collaboration with GANVAM.