With more stock and less demand, brands resume self-registration.
Inflation has curbed the demand for the purchase of vehicles just at the moment in which the supply and its stock are gradually recovering, so impacted by the crisis of components. With a average price of 22,700 euros for a new vehicle11% more than a year ago, according to the Tax Agency, dealers could lower prices by 15% and still maintain the profitability of operations, according to MSI data for Sumauto, a specialist in vertical automotive portals of which it forms Autocassion part.
And is that the current market The priority of volume has been changed to that of profitability, so that less is sold but with much more profit per unit. However, and although in a lower volume mainly due to the economic situation, the production chains have continued to supply distributors who increasingly have a greater number of units but with a “frozen” demand from individuals, for which reason They are forced to divert part of their stock to other channels to be able to give it an outlet and avoid bottlenecks. And here the turning point was the first rise in interest rates last July, which affected not only buyers, but also distributors, seeing increased financial expenses with which they cover their stock.
Specifically, in the case of self-registrations increased only in September by 16% to refer to the used market. The same is true of rent a car, with an increase of 60.9% that same month, a forgotten segment after the pandemic. On the other hand, registrations fell more than 17%, although compared to 2019 due to taking into account the last pre-pandemic year, although it had the nuance of the entry into force of the new WLTP regulations.
For all these reasons, Sumauto warns of the need to incorporate individuals back into the wheel of the market, adjusting the offer to make prices more accessible with the aim of stimulating demand and speeding up stock rotation, every time that, no matter how much the used market is fed by tactical registrations, the truth is that VO sales are also downwith a drop forecast for this year of 2.5%.
This situation can lead to negative impact on the price of used vehicles, since, with more stock and less demand, the average amount could begin to decrease and with it the profitability of the distribution networks that fed their stock at a much higher cost than usual. Hence the need, according to Sumauto, to deploy the stock of vehicles in a more uniform way between channels and not focus on just one, such as deriving VN to VO.
According to Ignacio García Rojí, spokesperson for Sumauto, “the automotive market has room for adjust your offer, have a healthy stock and still maintain a higher profitability than usual. But neither can we put all our eggs in one basket and self-register to feed a used market where there is also less demand. Now who needs a car buys it, not who wants it. Therefore, it is necessary to distribute the stock through channels with balance and common sense and start thinking about strategies to speed up the rotation of the stock”.