Sales of used cars skyrocket in Argentina

[MilHojas]

Sales of used cars skyrocket in Argentina

An increase of up to 65% in the sales of used cars was recorded this past month of March in Argentina, the Chamber of Automotive Commerce (CCA) reported.

en.mercopress.com

 

[antipodean]

I don't see this as having much to do with "recovery" at all.

Many middle class Argentines I know buy cars as a form of wealth preservation. Since their pesos are worthless to save and they cannot freely buy dollars to save (or don't want to keep them hidden under the mattress at home) a car is seen as something that can be converted to cash in a few years when the time is right as well as something practical to use in the meantime. Used cars do not devaluate here as fast as abroad and peso-wise will almost always appreciate in price.

Given the massive brechas some months ago and spree of new car purchases this incurred it is natural people are now selling their old cars since factory new cars could easily take 6 months to actually arrive after being purchased here. Given the extra supply and weak economy, prices are low and people simply smell a deal to be had.