Days, weeks, months? How long does it take to sell a used car in Chile?

The sale of used cars in Chile is a recurring theme. How many times have we not been in a meeting with friends or family and someone comments that they are selling their car, they don’t know how much to charge or maybe how long they have it will offer at a dealership or on some online sales place.

The second-hand vehicle market is important. According to the latest report from the Chilean Automotive Chamber of Commerce (Cavem), in April 78,153 light and medium units were transferred, which represents a decrease of 10.8% compared to the same period of the year. last year.

Cumulatively, the sale of used vehicles in the first four months reached 321,468 units, a negative variation of 16.6% compared to the same year of 2022.

As can be seen from Cavem’s figures, this year there is a drop in sales, unlike previous years when there was a significant increase. Added to this is a constant fall in the price of used cars, as indicated by Marco Zuñiga, responsible for used vehicles at Bruno Fritsch, who specifies that “compared to the fall in the prices of used cars in 2022, from its highest point until December 2022, cars have fallen an average of 15% to 18% and this year they have at least an additional 10% drop”.

To analyze what happened to the used car market, yapo.cl presented the study entitled “Radiografía del Consumidor Automotriz”, in which one of the main reasons for the downward trend in the sale of used cars is the regulation of the stock of new cars, which, at the era, meant excess demand for used cars.

As the study points out, a year ago, a used vehicle took an average of 17 days to sell, on the other hand, today it takes an average of 36 days to finalize the sale that is, in one year it more than doubled, reflecting a slowdown in the auto industry.

The figures presented in the study are eloquent and obvious, but at dealers like Bruno Fritsch, the average sale of a used car is even higher.

“In our case, we take an average of 45 days to sell used cars, but here the dispersion is quite significant, there are cars that sell very quickly, in 5 or 10 days, and others that can take up to 90 days. . It depends a lot on the car ticket, the type of car. Above 20 million, it obviously takes longer to sell, whereas a city car in high demand can sell very quickly, but on average we are in 45 days”, specifies the used vehicle manager of Bruno Fritsch.

Regarding the number of vehicles released during the period, the Yapo.cl study also showed a decrease, in this case of 8.7% compared to the last quarter of the previous year, while demand had a slight increase of 1.8%

Among the reasons for the drop in publications, it is pointed out that, although there is an interest in renewing the vehicle, it is not an immediate decision on the part of the consumer due, among other things, to the current economic situation, where there is an increase in interest rates.

Added to this is that there are now a greater number of vehicles available, both used and new, which means that the purchase decision takes longer, without the lack of stock factor involved, a variant that had been on the market for many months. .

The study commissioned by yapo.cl it also analyzes the models most requested by users and the average cost of a vehicle per kilometer.

Regarding the average selling price of used vehicles, the study indicates that in the first quarter it was $11,700,000.

As for what will happen to prices, Bruno Fritsch stresses that “we estimate that they will probably continue to fall, since prices are still at a much higher level compared to pre-pandemic prices. On the other hand, we see that the stock of new cars is also at quite a high level, which will cause new car brands to start giving bonuses and discounts on cars, which indirectly will also put pressure on The price of used ones drops.

Regarding the best-selling car models, the analysis of Yapo.cl specified that at the national level it was Mitsubishi L200, Toyota Yaris and Kia Morning. Moreover, among the 15 most traded, they accounted for 26% of the total.

In the metropolitan area, where the greatest number of vehicle sales are generated, the top-selling models were Kia Motors Morning, Mitsubishi L200 and Kia Rio.

1. Mitsubishi L200 (3% of total)
2. Toyota Yaris (2.2%)
3. Kia Morning (2.1%)
4. Toyota Hilux (2.1%)
5. Chevy Spark (2%)
6. Accent Hyundai (2%)
7. Kia Rio (2%)
8. Suzuki Swift (1.7%)
9. Hyundai Tucson (1.7%)
10. Chevrolet Sail (1.6%)
11. Toyota RAV4 (1.4%)
12. Suzuki Baleno (1.1%)
13. Hyundai Santa Fe (1%)
14. Ford Ranger (1%)
15. Suzuki Alto (1%)

Now, if the supply of used cars is compared by the geographical areas of the country, a decrease can be observed throughout Chile. The largest differences are observed in the Austral zone, with a drop of 37.7%, followed by the Norte Grande, with a drop of 20.8%.

Regarding demand, the Norte Chico, between January and March 2023, had a greater variation, with an increase of 11.4%, while the central area practically maintained the same demand for used cars, with a minimum variation of 0.5% during the first quarter compared to the fourth quarter of 2022.