76 FENAUTO Sales of used vehicles reached 9.5 million units between January and November 2014, an increase of 6.4% year on year (8.9 million), says the National Federation of Automobile Dealer Associations (FENAUTO). According Ilídio dos Santos, president of the organization, the percentage of trade on the internet cannot be accurately gauged. What is known is that the internet is increasingly important in this business. “Absolutely yes,” says Santos. “This is an extremely important tool for doing business today. Consumers uses the internet to find out about the cars they are interested in and usually when they get to the dealership they are well informed about all the features,” he adds. Interest among buyers in looking for cars on the internet is growing rapidly and today the web is considered by Ilídio dos Santos to be a strong sales channel. “Maybe ten years ago people had to go to a dealership to find out what was available and what the offers and facilities were. Today, with the research done beforehand, they have different attitude in the dealership,” he says. Those who are interested arrive at the dealerships knowing all about the vehicle, the costs, the finance... Armed with information about competitors, buyers put more pressure on sellers. “While previously buyers depended on the salesperson, now there are lot of other tools with which to check on information and buyers are much better prepared to negotiate,” says the president of FENAUTO. In this respect, the internet has become a rival of physical dealerships. Usually, the information that the buyer needs prior to purchase is price, down payment, and financing, in addition to the car’s condition and mileage. Santos says the legal situation is also important. “FENAUTO recommends buyers ask sellers for all the vehicle’s documents to check out any fines or other incidents. If they have the owner’s manual, it is even better, to check if servicing has been done properly and whether there have been any problems with the vehicle,” he says. Another recommendation is that a deal to buy a used vehicle only be done after it has been inspected. “There is no way to properly assess any goods that we are buying just from a photo published on the internet. Direct purchase, looking in detail at the vehicle, is always better and can result in fewer headaches for buyers,” he says. FENAUTO does not have data on the profile of internet buyers - gender, age and income level. As for the age of the preferred cars, Santos says that normally younger used cars are the most popular, because they have a lower mileage and are in better condition. “The original factory warranty is often valid in many cases,” he says. “That said, we can see a growing trend in sales of older vehicles in certain regions of Brazil,” he adds. FENAUTO has four ratings for cars: what it calls “semi-new,” aged up to 3 years old; “young used,” between 4 and 8 years old; “mature used,” aged between 9 and 12 years old; and “old,” at 13 years and above. Trends | On analyzing trends in e-commerce for vehicles, Ilídio dos Santos concludes that the use of the internet, given its ease and widespread use, is expected to grow a lot in the coming years, making it an excellent tool to streamline the consultation process and get information and data on vehicles. He is sure, however, buying in a physical dealership is still far from finished and should also get stronger in the coming years, as it becomes more professional, with dealers also using the internet to promote sales. To prepare its members, FENAUTO provides a lot of important tools so they can stay up to date with the main trends and be aware of mechanisms to leverage sales. The president of FENAUTO adds that, “We have developed an extensive program of regional meetings with local associations and dealers, offering talks and workshops on various topics of interest in the category and also to build closer relationships and exchange experience.” The goal is for the dealers and all their staff to understand these new consumer dynamics and be properly prepared to serve them. In December last year, for example, it held the third edition of the FENAUTO Congress, providing workshops and presentations to provide ammunition for our professionals so they are prepared for the new demands that the market is imposing on them. A dynamic sales channel E-commerce sales of used vehicles are up and competing with physical dealerships. FENAUTO prepares members to deal with better informed and more demanding consumers
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