At one time, in Argentina, the acquisition of a car was considered synonymous with savings and financial security. However, as time went by, that statement began to be questioned.
In the last quarter of 2023 the Automotive industry was affected by the presidential elections and fluctuations in the dollar. Given the escalation of prices, the cars They were left without reference. However, the beginning of the year is usually a good time to change the vehicle. But in the current economic context, is it still a profitable investment?
Many people decide to have a car to facilitate your daily routine, such as going to work, taking your children to school, attending sports activities or simply enjoying the comfort during the weekend. Also, there are those who use it as a source of income and employment.
According to the latest report presented by the Association of Automotive Factories (ADEFA), Vehicle production last month reached 37,491 units, more than 65% than January and 19% below February 2023 volume. Meanwhile, in wholesale sales, the sector sold 33,234 units to the dealer network, exceeding January by 108.50% and February 2023 by 10.30%.
“Currently, due to the erosion of prices, maintaining a car or truck could be considered more of an expense than an investment, given that it involves costs such as license plate, insurance, maintenance, fuel, parking and vehicle technical inspection, among others. Furthermore, we must not overlook the natural wear and tear that each vehicle suffers over time and use,” explains Ezequiel Baigorria, Reba Product Owner.
Is it better to buy a dollar or a car?
For these reasons, and when asked whether it is advisable to buy dollars or a car, from the financial entity regulated by the BCRA, assure that the answer depends on the purpose given to the vehicle and the ability to meet the associated expenses. “If your goal is not comfort or having a source of income through a utility vehicle, the answer is a resounding no. Currently, there are much more efficient and profitable investment alternatives in the current economic context such as MEP dollar, Common Investment Funds and Negotiable Obligations”, comments.
To illustrate, Baigorria explains that if five years ago someone had invested $600,000 or the equivalent of $14,000 in the purchase of a car, such as a by decreasing its value to $9,200represents a 35% loss of capital due to wear and tear and depreciation.
Volkswagen Gol (1).jpg
In addition, we must add the costs associated with maintenance, which accumulate year after year. On the other hand, if the decision had been invest in dollars, its value would have been preserved or even likely to have increased over time. From 2019 to today, the MEP dollar increased by 1000%, which means that those who bought the US currency that year and would have kept those US$14,000, today they would have $14,000,000.
“We recommend purchasing MEP dollar through financial entities or digital wallets that offer this type of investment, as is the case with Reba, since our app has an automated process for the purchase and sale of this currency, which simplifies the user experience and in addition, we provide the possibility of accrediting automatically or manually, the latter option being a popular choice among people “Those who save, are in no hurry to get their dollars and want to take advantage of a more favorable price,” concludes Reba’s Product Owner.
Source: Ambito
