Financing for New Car Purchases Makes a Comeback as Sales Decline

Financing for New Car Purchases Makes a Comeback as Sales Decline

In response to high inflation and limited financing options, many automotive companies have implemented new financing plans in order to boost their sales. The sharp increase in prices for new vehicles in recent months has led to a significant decline in sales, with last month seeing a 14.8% drop compared to January and a 20.4% drop compared to February 2023.

During February, 14,469 vehicles were financed, with 61.1% of them being new units and the remaining 38.9% being transfers of used vehicles. This has prompted automotive companies to reintroduce financing incentives to stimulate sales.

Volkswagen Argentina, for example, has launched a new campaign called “VW Weeks” offering financing at a 0% rate with terms of up to 12 or 18 months for models such as Nivus, T-Cross, Taos, Saveiro, and Amarok V6. The company also offers an agreement with the insurer Zurich for six months of all risk insurance for these models.

Stellantis, the merger of Peugeot and Fiat, is offering financing plans for the purchase of models such as Peugeot 208 and Peugeot Partner during the month of March. The financing options range from $3,000,000 at a 0.0% rate with a 12-month payment term up to $9,000,000 with a 12-month term at a 9.9% rate per year.

Fiat has also introduced new financing alternatives for the purchase of models like Cronos, Strada, and Fiorino at a 0.0% rate. The Cronos, considered the best-selling vehicle in the Argentine market, offers financing of up to $8,000,000 over 12 months at a 0.0% rate, with options for UVA line loans up to $10,000,000 in 24 installments at a 0.0% rate. These financing options are available for both natural and legal persons.

Leave a Reply