The Fipe table is the reference when the consumer wants to know the average market price of a used car. Updated monthly, this tool is consulted by millions of Brazilians.
The Fipe table is the reference when the consumer wants to know the average market price of a used car. Updated monthly, this tool is consulted by millions of Brazilians.
The used car trade is growing in the Brazilian market, this is mainly due to the increase of km 0 cars in the last three years, where some models have had an increase of around 40% in just three years, as stated by industry specialists. This increase in the price of brand new cars makes most of the consumers choose a second hand car, as this is more attractively priced than brand new cars.
Another factor favoring the used car market, according to specialists, is that a group of buyers prefer to buy a car with a few years of use instead of a brand new car for the same price. The advantage of this type of negotiation, according to insiders, is that the consumer takes home an almost new car with a more powerful engine and much better equipped than a new model of the same price.
One of the biggest concerns of consumers when buying a used car is knowing the true price of a particular model. This is where the Fipe table comes into play, which has been a reference for years when looking for information on the price of a specific make and model of vehicle. The price of the cars provided by the table can be consulted on Fipe Nacional, a monthly updated website that provides the Fipe price of all makes, models and versions of cars sold in Brazil. It is also possible to consult the price of motorcycles and trucks there.
The table is published and updated monthly by the Fundação Instituto de Pesquisa Econômica, where every month a team of researchers conducts extensive market research to increase the price of all used cars in Brazil. The search is so extensive that it includes all models and different versions of every car sold in Brazil, this applies both to brands that produce cars in the country and to imported models, including versions with few units sold in Brazil, such as the top of the line versions of luxury and sports brands, including BMW, Mercedes Benz, Porsche and even Ferrari.
According to experts, the values provided by Fipe also serve as a parameter for insurers in the event of an accident involving a car that has insurance. Some insurers also offer the option of quoting the insurance with a higher value than the table. A common practice, in this sense, is the quotation of 10% above the value.
Of course, it’s not just the price that matters when buying a second-hand vehicle. It is of paramount importance that the model is up to date with its maintenance. According to reports from those who work in the sector, there are essentially two ways to find out the real conditions of a used vehicle.
“When the car has only been used for a few years (less than 5 years, for example) many customers carry out all periodic maintenance directly at the dealerships accredited by the House”, the specialists point out. “Since this maintenance takes place every 10,000 km traveled or over a 12-month period, this guarantees maintenance consistent with the use of the car, and in this case the vehicle seller is able to demonstrate the maintenance of his asset through a invoice”, they add.
As for models that do not pass through accredited dealerships, the option is to take the car to a trusted mechanic, where a specialist can detect if the car has chronic problems, has it already suffered an accident that affected it the trim and whether the mileage on the odometer matches the actual mileage on the vehicle, as it is the practice for some people to tamper with this information.
Equally important, according to insiders, is hiring a company to issue an injunction. This type of company does an extensive search based on the vehicle’s license plate and looks up information such as outstanding fines, possible insurance claims, or even pending lawsuits.
According to the specialists, the national market for the used vehicle trade has always been of great importance in the economy. “Thousands of dealerships sell hundreds of thousands of cars every month across Brazil, as it is common for consumers who own a car to plan to buy a newer model (or higher category vehicle) over time,” say experts . “Even those who buy a brand new car usually trade in the used one as well,” they add.
Buying a used car can basically be done in three different ways. The most common is for the customer to make a down payment on the car he intends to buy (this item could be his current vehicle) and finance the rest through your bank or a financial partner of the resale. Another purchasing option for used cars is the consortium system, which includes the vast majority of consortium directors who allow the purchase of second-hand cars. Demand for the consortium is usually highest during periods when the interest rate for the loan increases.
Finally, a small part of the Brazilian population chooses to buy a car with cash, without relying on loans or consortia. Naturally, this option requires financial planning and is the alternative in which the customer has a better economic return, as he is free from paying commissions and interests.
Contacts: www.fipenacional.com.br
Website: https://www.fipenacional.com.br/
Source: Terra
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