Vehicle Financing Stumbles 0.3 Percent in FebruaryBy Alejandro Enríquez | Wed, 04/08/2020 - 13:28
Financing decreased 3.4 percent for new units but it increased 24.1 percent for used vehicles.
AMDA released its monthly report on vehicle financing. In February, there was a 0.3 percent decrease compared to 2019. New-vehicle financing dropped 3.4 percent but it was supported by the used-vehicle segment, which reported growth of 24.1 percent. The report indicates used vehicles have grown 2.7 percentual points in market share, going from 11.1 percent in Jan-Feb 2019, to 13.9 percent in 2020, highlighting the appeal of used vehicles over new units.
Financed vehicles accounted for 62.8 percent of total vehicle sales in February. As for the financing sources, market share remains the same. OEMs’ financial brands account for 67 percent of the market, while banks account for the other 28 percent.
Most OEMs' financing branches grew at a double-digit rate in used vehicles."
Most OEMs’ financing branches reported negative growth in financing for new credits, but most of them grew at a double-digit rate in used vehicles. Suzuki's partnership with Santander reflected in a 952 percent growth rate compared to 2019, financing 782 units. The biggest player in the segment, NR Finance, had a positive result of 0.5 percent, while Hyundai Finance presented 27.4 percent growth compared to 2019.
In terms of credit maturation periods, one out of three credits are still granted for a 60-month period. In fact, this segment grew 3.7 percent compared to 2019. In comparison, credits of 18 months or less decreased almost at a double-digit rate.