Jaguar Land Rover Dealership of the SHC Group

Jaguar Land Rover Dealership of the SHC Group

Fernando Calmon – TO HAVE OR NOT TO HAVE, THAT’S THE QUESTION – One of the questions for those who use a car on a daily basis is how to choose between use, possession or ownership. The sharing model started in 2009 as a response to the US mortgage banking crisis and has spread around the world. For some time this was thought of as a winning model, but that wasn’t quite the case. Several manufacturers have created their own companies to rent vehicles. Some gave up on the deal when apps presented themselves as a cheaper alternative to taxis. Activity grew so much that several cities imposed fees or tried to ban the service.

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There were those who did calculations, sold their car and started to move through apps and a few touches on the cell phone screen. However, they have also experienced some inconveniences such as the delay at peak times or on rainy days when demand increases a lot. Not to mention some cancellations that can lead to late appointments. Those who drive more than 500 km a month, on average, must do some math (including parking) to find out if it’s worth getting rid of their own car.

From the consumer’s perspective, the first aspect is the comparison between ownership and long-term lease costs. Consultant Francisco Mendes explains: “Acquisition, taxes, insurance, scheduled or corrective maintenance are explicit and occur over time of use, while the depreciation of the asset only takes place at the time of sale or exchange, but integrates the cost of ownership. ”

There is also the sociological aspect. According to him, “the vast majority of consumers do not account for the cost of ownership. For personal reasons prefers ownership of the property, considering long-term financial security. Those who do not generate their own income tend to have greater insecurity about their ability to continue leasing at the end of the contract. They know that if there are no resources to replace the asset, they can stay with the vehicle for longer periods and continue to meet their mobility needs.”

Over the past five years, rental companies have achieved an important share of total sales, in addition to their traditional operations in the area of ​​tourism and fleet outsourcing. The all-inclusive long-term rental, known as “subscription”, entices everything from app drivers to higher-end buyers. The latter represent more profitability and much lower delinquency rates, in addition to having tenants accurately calculate the cost of ownership.

Mendes points out a strong retreat of rental companies due to the pandemic. “There are effects on sharing operations, which are important in the rental business. Manufacturers cannot achieve a balance based on sales to large fleets and have redirected efforts to reach this market thanks to the capillarity of their dealership network.”

The subscription car attracts from rental companies to insurance companies. And now there is VW’s Sign&Drive initiative, with T-Cross 200 TSI (12 x R$1,899) and Tiguan Comfortline (24 x R$3,659). Toyota will debut the Kinto Flex in the first half of 2021.

HIGH WHEEL

  • OCTOBER was another month of recovery in the domestic light and heavy vehicle market: average daily sales (10,200 units) rose 3% over September. In the 10-month period, compared to the same period in 2019, there was a decrease of 30.4%. Specifically in June this year indentation was 75% over the same month last year. Weak exports pulled production down: 38% less.
  • Total STOCKS have never been so low: just 18 days. The industry faces slow speed on production lines and punctual shortages of parts. Luiz Carlos Moraes, president of Anfavea, admits that the drop this year will be smaller than initially expected. “For 2021 it is difficult to predict, when the repressed demand for the pandemic ends and the stimulus to the economy will be reduced for fiscal reasons”, he added.
  • FENABRAVE confirmed that the sale of used vehicles (including independent stores) has been reacting better in recent months. Cumulative decline this year compared to 2019 is at 20.5%, which may support a more encouraging recovery in 2021. So far 4.7 times more used than new have been sold (historical ratio). The entity has not yet made forecasts for the next year.
  • ONE FOR HERE, another for there: two new products will be launched next week in Argentina: the 17th, the Hilux 2021 pickup, here, and the 19th, the medium SUV Nivus there, imported from Brazil.
  • BORGWARNER completed 45 years in Brazil. It started with turbochargers for diesel commercial vehicles. Over time, the parent company acquired other brands such as competitors KKK and Schwitzer, Delco Remy and more recently Delphi Technologies. Since 2015, it has had a research and development center in Brazil. It also developed the first turbocharger for flex engines.
  • Off-road ACTIVITIES are on the rise in the country. Thus, tires need to resist well in these conditions. It is General Tire’s bet, with the new Grabber A/Tx resistant to cuts and perforations.

Fernando Calmon

fernando@calmon.jor.br e www.fernandocalmon.com.br

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Fernando Calmon – Car Signing, National Market

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