With around the IPI, used car will be more attractive to the consumer
This article was translated by an automatic translation system, and was therefore not reviewed by people.
By: Roberta de Matos Vilas Boas
SAO PAULO - With the return of normal rates of IPI (Tax on Industrialized Products), January 2010, new cars will become more expensive for consumers, benefiting from the used car market.
That's because, according to finance professor at FEA-USP (Faculty of Economics and Administration, University of São Paulo), Keyler Rocha, the increase in prices of new oils will make more attractive for consumers. "The rise in prices leads consumers to new car to use," he says.
Supply and demand
Rocha points out that after the reduction of the IPI, the supply of semi-new cars has increased, since many people wanted to swap cars for a zero kilometers and take advantage of discounts. At the same time, it also meant that the demand for used would fall, putting downward pressure on prices of these vehicles.
In addition, the teacher remembers who bought a new car will not sell it soon, or who took the rebates this year should not change their vehicles soon, which will reduce the supply of used. "With the rising price of zero, will increase the demand for used and it should warm up this market," he said.
However, Rocha points out that with the release of new versions later this year and early next, it is possible that consumers remain more attracted by the market of zero kilometers, as is common for manufacturers and dealers practice discounts in previous versions.
Source: InfoMoney
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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