Used car sales at dealerships drop 1.6% in first half; new cars gain advantage due to discounts

Dealerships in Mexico saw a moderate 1.6% decline in used car sales during the first half of the year, a shift from the previous year's growth. On average, dealerships are selling 16 used cars per month, with inventory now staying on lots longer before being sold. While 76% of used inventory sells within three months, this extended holding period can increase costs for dealers due to interest payments.

In contrast, new car sales are currently more robust, with dealerships selling an average of 42 new vehicles monthly. This trend is attributed to fierce competition in the new car market, leading to price containment and discounts. "Prices have been contained. In real terms, they are below last year, and this is reflected in discounts on new vehicles," said Guillermo Rosales, executive president of the Mexican Association of Distributors of Automobiles. He added that with credit terms extending to five or six years, new vehicles are becoming a more attractive option for some consumers than used ones.

Despite the slight dip in used car sales, the market for vehicles aged one to three years remains a focus for dealerships. The overall automotive market is experiencing a dynamic shift, with new car incentives and financing options influencing buyer preferences over the more traditional used car market.

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The prices have been contained. In real terms, they are below last year, and this is reflected in discounts on new vehicles, and therefore, when combined with the availability of credit for terms of 5 and 6 years to pay off a new vehicle, for some customers it is more attractive to opt for the new vehicle than for a pre-owned vehicle.