The bonus plan for the purchase of new cars is extended

The boost given by the "0 km June" plan to the automotive activity led to extend the plan during July or until the unused balance runs out for each brand corresponding to the $1 billion included in the incentive given to the customer for the purchase of new units.

The automotive terminals that make up the Association of Automotive Makers (ADEFA) and participate in the plan sealed their commitment to continue with the extension of the mechanism until the stock is exhausted.

The impact of the 0KM June plan was reflected in a marked 100% increase in the movement and inquiries in the sales rooms. Focusing on the vehicle segment which falls within the plan, the signature of sales contracts of tickets was raised by 50% compared to the previous month and by 47.9% the daily sale records.

In this regard, the president of ADEFA, Luis Fernando Peláez Gamboa, highlighted the joint and articulated work between the public and private sector aware of the situation of the sector. "It is important that the Plan has been extended, now "July 0km", as it could be shown that it had an incremental effect on the activity that is reflected on the numbers and data recorded in this first stage of it", he pointed out.

According to the reached demand up to now, it is estimated that in total the Plan will yield at the end of it, an increase between 10,000/12,000 units approximately compared to the projections made prior to its implementation.

On the other hand, it is estimated that in the records for July the full impact of the plan will be reflected since the operations were intensified in the last weeks of June, and between the signature of the sales contract and the licensing process  a 10/15 day window is opened when commercial issues (financing, what is done with the used car, etc.) between the customer and the dealer are defined.

Through the incentive, the State increased its tax collection potential from the Plan sales. Moreover, there is a multiplier effect for the higher collection by registrations, usage and other taxes/fees. Another positive spillover effect that this mechanism has is to promote employment and a greater payment of taxes by the entire value chain.

Likewise, since the announcement of the Plan’s implementation, Buenos Aires City, Buenos Aires province, Córdoba, Chaco and Río Negro acceded to the exemption/deferral of the sealing payment at the time of registration for all the vehicles included in the Plan, a mechanism that helped make the system more attractive to the final customer.

Press 07/01/19.-

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