Most of the vehicle distribution agencies in the country agree that if the exchange rate continues its upward trend, a negative effect could be seen on the automotive spare parts market, since these are products that are imported in dollars but sold in colones, the local currency. In the case of vehicles, which are marketed in dollars, most companies believe that the dollar price increase has not yet had a significant impact, but they are focusing on advising their customers on how to manage the foreign exchange risk when taking out a loan to buy a car.

See: "Costa Rica: $ 1 Billion in Vehicle Financing"

Miguel Gorrías, Marketing Manager at Grupo Automotriz, a distributor of Ford and Volkswagen, explained to Nacion.com that "...since the beginning of the year a strong possibility has been seen in the price of the dollar going up, giving rise to the consequence, in the short term, of customers who are more sensitive to the exchange rate freezing or postponing their purchase. Equally, its not been ruled out that the increase will have a negative effect on prices of spare parts, because unlike vehicles, these are acquired in dollars but must be marketed in colones."

See also: "Costa Rica: Autoparts Business Growing"

"... Grupo Los Tres - a distributor of Volvo - is another company that believes that the sale of spare parts may be one of the hardest hit by the dollar price hikes. Axel Figueroa, general manager at the business group, said that in light of this, very calculated projections should be made regarding the costs of importing these products and there should be control over the fluctuation of the dollar versus the colón."

Source: Nacion.com

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