76 / 120
76
FENAUTO
Sales of used vehicles reached 9.5 million
units between January and November 2014, an
increase of 6.4% year on year (8.9 million), says
the National Federation of Automobile Dealer
Associations (FENAUTO).
According Ilídio dos Santos, president of the
organization, the percentage of trade on the internet
cannot be accurately gauged. What is known is that
the internet is increasingly important in this business.
“Absolutely yes,” says Santos. “This is an extremely
important tool for doing business today. Consumers
uses the internet to find out about the cars they
are interested in and usually when they get to the
dealership they are well informed about all the
features,” he adds.
Interest among buyers in looking for cars on
the internet is growing rapidly and today the web is
considered by Ilídio dos Santos to be a strong sales
channel. “Maybe ten years ago people had to go to
a dealership to find out what was available and what
the offers and facilities were. Today, with the research
done beforehand, they have different attitude in the
dealership,” he says. Those who are interested arrive
at the dealerships knowing all about the vehicle, the
costs, the finance...
Armed with information about competitors, buyers
put more pressure on sellers. “While previously buyers
depended on the salesperson, now there are lot of other
tools with which to check on information and buyers are
much better prepared to negotiate,” says the president
of FENAUTO. In this respect, the internet has become a
rival of physical dealerships.
Usually, the information that the buyer needs prior
to purchase is price, down payment, and financing, in
addition to the car’s condition and mileage.
Santos says the legal situation is also important.
“FENAUTO recommends buyers ask sellers for all the
vehicle’s documents to check out any fines or other
incidents. If they have the owner’s manual, it is even
better, to check if servicing has been done properly
and whether there have been any problems with the
vehicle,” he says.
Another recommendation is that a deal to buy a
used vehicle only be done after it has been inspected.
“There is no way to properly assess any goods that we
are buying just from a photo published on the internet.
Direct purchase, looking in detail at the vehicle,
is always better and can result in fewer headaches for
buyers,” he says.
FENAUTO does not have data on the profile of
internet buyers - gender, age and income level. As for
the age of the preferred cars, Santos says that normally
younger used cars are the most popular, because they
have a lower mileage and are in better condition. “The
original factory warranty is often valid in many cases,”
he says. “That said, we can see a growing trend in sales
of older vehicles in certain regions of Brazil,” he adds.
FENAUTO has four ratings for cars: what it calls
“semi-new,” aged up to 3 years old; “young used,”
between 4 and 8 years old; “mature used,” aged
between 9 and 12 years old; and “old,” at 13 years
and above.
Trends
| On analyzing trends in e-commerce for
vehicles, Ilídio dos Santos concludes that the use of the
internet, given its ease and widespread use, is expected
to grow a lot in the coming years, making it an excellent
tool to streamline the consultation process and get
information and data on vehicles.
He is sure, however, buying in a physical dealership
is still far from finished and should also get stronger
in the coming years, as it becomes more professional,
with dealers also using the internet to promote sales.
To prepare its members, FENAUTO provides a lot
of important tools so they can stay up to date with the
main trends and be aware of mechanisms to leverage
sales.
The president of FENAUTO adds that, “We have
developed an extensive program of regional meetings
with local associations and dealers, offering talks and
workshops on various topics of interest in the category
and also to build closer relationships and exchange
experience.” The goal is for the dealers and all their staff
to understand these new consumer dynamics and be
properly prepared to serve them.
In December last year, for example, it held the
third edition of the FENAUTO Congress, providing
workshops and presentations to provide ammunition
for our professionals so they are prepared for the new
demands that the market is imposing on them.
A dynamic sales channel
E-commerce sales
of used vehicles are
up and competing
with physical
dealerships.
FENAUTO prepares
members to
deal with better
informed and
more demanding
consumers