Making alliances with factories, applying distance protocols at points of service and encouraging the use of digital platforms are some of the strategies that have begun to be implemented by new vehicle distributors in the region.
Managers of Grupo Q, a company that operates 40 salesrooms in Central America, explained that given the spread of covid-19 and the restriction of consumer mobility, they are working to deepen alliances with factories and achieve a comprehensive chain of savings in different areas.
After registering increases in the number of imported vehicles in November and December, car dealers in Costa Rica expect that this 2020 will reinforce the positive trend.
According to data from the Ministry of Finance in November last year, 4152 vehicles were imported into the country, a figure that exceeds by 12% that registered in the same month of 2018.
New models, better financing conditions and increased imports of used units would boost the sale of electric vehicles next year in Costa Rica.
Danissa, Q Group, BMW and Laudreni Auto, agencies in the country dedicated to marketing electric vehicles, estimate that between 2019 and 2020 their combined sales will increase by 45%, from 342 to 497 units.
In recent years, there has been an increase in the number of vehicles manufactured in China and sold in the Costa Rican market, due to better quality models and better support from distributors.
Figures from the Association of Importers of Vehicles and Machinery (Aivema) specify that between 2016 and 2018 the number of units sold increased by 17%, from 1,198 to 1,407.
Arguing that the objective is to ensure that used cars into Costa Rica are in optimal condition, the new Customs authorities are tightening controls on imported units.
Importers of used vehicles in Costa Rica report that since the new General Director of Customs took office in January this year, is promoting a new guideline that generates uncertainty in the sector.
According to the guild of vehicle importers, the premium car and SUV segment accounts for about 15% of total sales.
Data from the Association of Importers of Vehicles and Machinery (Aivema), "... on imports and sales shows that the total number of premium cars and SUV's oscillates between 5% and 8% of the 36,000 new units that came into the country in 2017, but they represent 15% of sales.
In December 2016, 20% of the vehicles circulating in the countries of the region were between 1 and 5 years old, and 19% between 6 and 10 years old.
Data from the report"Vehicle Fleet in Central America 2016" compiled by the Business Intelligence Unit at CentralAmericaDatashows the different characteristics of the vehicles circulating in Central American countries.
In Costa Rica, companies in the automotive sector predict that eventual abrupt increases in the price of the dollar would have a greater impact on the spare parts market than on the sale of vehicles.
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.
Through a decree issued by the Ministry of Finance between January and August 2017 agencies and distributors will not be able to import vehicles whose model corresponds to 2018.
Decree number 39941-H which the Ministry of Finance issued on October 21 in La Gaceta states that, in order to regulate the assessment procedure for the import of vehicles, between January and August 2017 units can not be imported whose models corresponding to the following year, 2018.
Lead Solution is trust & reliable used and brand new vehicle exporter in Japan. We deal with Many vehicle dealers and individual customers in every continent and have vast experience vehicle of vehicl
Organization that operates in Costa Rica, Guatemala, Nicaragua, Panama, El Salvador, Honduras and Central America
Phone: (+81) 47-312-8887
In the past five years used cars lost 24% of market share due to improvements made in installment terms and interest on loans for buying new vehicles.
The market for used vehicles in Costa Rica has seen five years of decline, lacking attractive incentives for imports and being at a competitive disadvantage to the new vehicles market.
The Finance Ministry released data published by La Nacion which shows that the used car segment went from having a 54% market share in 2010 to a 30% share in 2015, down 24 percentage points.Meanwhile, the paper indicated, imports of new cars rose by 35% (going from 37,866 to 51,249 units) between 2013 and 2015.
In 2014, 84 000 new and used vehicles were sold in Guatemala, Costa Rica and Nicaragua alone, and it is expected that 2015 will close with an annual growth of nearly 10% across the region.
While the region has generally shown an upward trend in the marketing of vehicles, mainly new ones, the characteristics of each of the countries, particularly with regard to access to bank credit, makes the behavior of the auto market different in each.
34,000 new cars came into the country in 2014, the highest figure in the last ten years, leaving used cars imports far behind, having registered a total of 18,000 units.
At the end of 2014, 52,344 new and used vehicles were imported, representing an increase of 12% compared to the previous year. Of this total, 65% corresponded to imports of new vehicles.
Cars between 0-6 years old will incur a 30% selective excise tax with a tax burden of 53%, and those over 6 years old will incur a tax of 48% and have a tax burden of 73%.
From a press release from the Ministry of Finance in Costa Rica:
The Ministry of Finance reported today that after reviewing the effects of the update of the value of the vehicles that has been in force since December 2012, the implementation of the new Law on Transit, and the small amount of economic activity of the vehicle import sector this year, the Unit has determined an adjustment to the tax rates applicable on selective consumption, in order to give coherence to the tax system between the new values and the tax rate.