Financing sustains Argentina's car market despite sales dip

Financing continues to be the primary driver for both new and used car markets in Argentina. Despite recent declines in both segments, access to vehicles through secured loans (prenda) remains steady.

According to the Association of Automobile Dealers of the Argentine Republic (Acara), 33,169 operations were completed in July using financing options for both new and used cars. This accounted for 16.4% of all transactions that month. For new cars, 22,350 units were purchased via secured loans, representing 49.6% of new car sales. In the used car market, 10,819 units were financed, making up 6.9% of used car sales. Year-to-date, financing remains stable, covering 71% of new vehicle operations and 29% of used vehicle operations.

Brand finance companies, which are subsidiaries of automakers, are the leading source of secured loans, accounting for 44% of the market. Savings plans (planes de ahorro) are also a significant channel, representing 41% of operations. Banks, however, play a smaller role, holding only 13% of the financing market. This contrasts with the used car market, where bank financing has fallen from 63% to 35% compared to last year. Private finance companies have gained prominence in the used car sector, now holding 23%, followed by brand finance companies at 14%, and mutual and cooperative organizations at 10%.

Several brands are heavily reliant on financing. Peugeot and Citroën sell over 70% of their monthly units through secured loans. Fiat, also part of the Stellantis Group, delivers 69% of its vehicles under credit conditions. Acara's report indicates that all brands, except Chery, have increased their proportion of financed sales compared to 2025.