Why in the summer there is a rare opportunity to buy a car cheaper?
- May 18, 2022
- 0
The explosive growth in car prices in February-March of this year made some car dealers very rich. Right now, that price hike is starting to play a cruel
The explosive growth in car prices in February-March of this year made some car dealers very rich. Right now, that price hike is starting to play a cruel joke on car salesmen. The AvtoVzglyad portal found out what motorists can expect from the car market in the near future.
“In the first two weeks of May, only about 10,000 new cars were sold in Russia. That is eight times less than in the same period last year. The main reason is a drop in demand due to a consumer price shock, high interest rates on loans and leasing. The decrease in the range supply affects the situation to a minimum extent – according to various estimates, Russian car dealers currently have a good stock of about 125-150,000 new cars in their warehouses, “the head of the online new car auction Carclick.ru told the AvtoVzglyad portal Sergei Pigolkin.
The situation is such that the total prices for new cars in Russia not only stop growing, but for certain positions begin to fall. This trend is therefore particularly noticeable in the premium segment. In particular, some dealers have cut prices for models such as the Mercedes E-class sedan and GLC crossover by 30-50% from their peak values in March, from 8.5 million rubles to 5.5-6 million today.
The situation is similar with the BMW 3rd and 7th series, as well as with the fairly popular Audi A6. For other models of the segment, the cost reduction is 10-20%. As for Lexus, Infiniti, Jaguar-Land Rover, Cadillac cars, there is no price drop: dealers have very few real cars and parallel imports have not yet gained the necessary momentum due to logistical problems.
In addition, it should be borne in mind that a fair proportion of such machines were previously purchased on lease and credit and have become difficult and too expensive in the current circumstances. Nevertheless, according to Pigolkin, a kind of “parallel import” of cars to Russia has already started to function. Foreign cars were imported to us through the UAE. Already, some models of new Mitsubishi or Toyota, having arrived in the Russian Federation in this way, are sold here at prices 2-4 million rubles cheaper than in the salons of official dealers – and this takes into account all costs and earnings from resellers.
However, such a scheme has not yet become a mass phenomenon, since such operations are carried out only by private individuals and “overbid”. Car dealers are reluctant to turn to such imports. According to some reports, even now, after nearly three months have passed since the beginning of the well-known events in the Russian economy as a result of the Ukrainian operation, about 70% of dealer owners are doing nothing at all to survive their business, sincerely hoping that “that’s it.” will return and be as before. Although it is already known for sure that in Russia there will be no “as before” – at least for most car brands.
All this will surely lead to an inevitable fall in car prices. The fact is that in March-April most car dealers bought cars at very high prices from representatives of car brands. Even for batches of cars ordered long before the start of the special operation in Ukraine, car dealers had to pay at least 20-30% more than originally planned. And later deliveries cost them even more.
But now the buyer is not at all ready to buy a car at such prices. Sergey Pigolkin predicts that by June most dealers will no longer have a financial margin of safety. And in order to bring in at least some money for building maintenance, paying taxes, salaries, etc., they will be forced to rewrite car price tags in the direction of a serious drop in numbers. To at least get a stream of customers. It is difficult to predict how long this period of price decline will last. By mid-summer, the parallel import mechanism of cars should start working, and the population, having recovered from the price shock, will slowly start buying cars. These factors allow dealers to maintain high sales prices in the auto market.
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photo AutoView
photo AutoView
“In the first two weeks of May, only about 10,000 new cars were sold in Russia. That is eight times less than in the same period last year. The main reason is a drop in demand due to a consumer price shock, high interest rates on loans and leasing. The decrease in the range supply affects the situation to a minimum extent – according to various estimates, Russian car dealers currently have a good stock of about 125-150,000 new cars in their warehouses, “the head of the online new car auction Carclick.ru told the AvtoVzglyad portal Sergei Pigolkin.
The situation is such that the total prices for new cars in Russia not only stop growing, but for certain positions begin to fall. This trend is therefore particularly noticeable in the premium segment. In particular, some dealers have cut prices for models such as the Mercedes E-class sedan and GLC crossover by 30-50% from their peak values in March, from 8.5 million rubles to 5.5-6 million today.
The situation is similar with the BMW 3rd and 7th series, as well as with the fairly popular Audi A6. For other models of the segment, the cost reduction is 10-20%. As for Lexus, Infiniti, Jaguar-Land Rover, Cadillac cars, there is no price drop: dealers have very few real cars and parallel imports have not yet gained the necessary momentum due to logistical problems.
In addition, it should be borne in mind that a fair proportion of such machines were previously purchased on lease and credit and have become difficult and too expensive in the current circumstances. Nevertheless, according to Pigolkin, a kind of “parallel import” of cars to Russia has already started to function. Foreign cars were imported to us through the UAE. Already, some models of new Mitsubishi or Toyota, having arrived in the Russian Federation in this way, are sold here at prices 2-4 million rubles cheaper than in the salons of official dealers – and this takes into account all costs and earnings from resellers.
However, such a scheme has not yet become a mass phenomenon, since such operations are carried out only by private individuals and “overbid”. Car dealers are reluctant to turn to such imports. According to some reports, even now, after nearly three months have passed since the beginning of the well-known events in the Russian economy as a result of the Ukrainian operation, about 70% of dealer owners are doing nothing at all to survive their business, sincerely hoping that “that’s it.” will return and be as before. Although it is already known for sure that in Russia there will be no “as before” – at least for most car brands.
All this will surely lead to an inevitable fall in car prices. The fact is that in March-April most car dealers bought cars at very high prices from representatives of car brands. Even for batches of cars ordered long before the start of the special operation in Ukraine, car dealers had to pay at least 20-30% more than originally planned. And later deliveries cost them even more.
But now the buyer is not at all ready to buy a car at such prices. Sergey Pigolkin predicts that by June most dealers will no longer have a financial margin of safety. And in order to bring in at least some money for building maintenance, paying taxes, salaries, etc., they will be forced to rewrite car price tags in the direction of a serious drop in numbers. To at least get a stream of customers. It is difficult to predict how long this period of price decline will last. By mid-summer, the parallel import mechanism of cars should start working, and the population, having recovered from the price shock, will slowly start buying cars. These factors allow dealers to maintain high sales prices in the auto market.
SUBSCRIBE FOR EXCLUSIVE CONTENT
PORTAL “AVTOVGLYAD” IN TELEGRAM
Source: Avto Vzglyad
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
