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Used cars may end the overvaluation cycle in Brazil in 2023

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In the US, used car prices could fall by up to 20% in 2023 (Image: Pixabay)

The days of overvaluation used cars may have their days numbered, says a new report by the JP Morgan about the fleet United States🇧🇷 In the country of ‘Uncle Sam’, used car inflation was over 40% in just over two years, with a peak centered in the first half of this year.

Since then, the price of used and semi-new vehicles has started to cool down and can drop from 10% to 20% in 2023, according to the bank.

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The decline in prices occurs as production bottlenecks on semiconductors are smoothed out, making it cheaper not only to run vehicles but also 0 km.

The worsening purchasing power of the American consumer also impacts the demand for durable goods and pulls inflation down.

Phenomenon should be imported by Brazil

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But the phenomenon should not be restricted there. just like us USAused car inventory in Brazil went through a similar overvaluation cycle in 2020 and 2021.

Vehicles like the VW Gol, recently discontinued, are still experiencing a resilient appreciation, as a study prepared by Mobiauto in September had already shown.

The platform for buying and selling vehicles points out that the 2014, 2016 and 2013 models had an appreciation of 4.61%, 3.25% and 5.44%, respectively.

Other cars that appear on the valued list are well-known models and ‘darlings’ of the public such as the ‘Fiat Mobi and the Hyundai HB20S. These vehicles appreciated more than 2%, even with the drop in market prices.

In the same study, however, the company had already mentioned the chance that the prices of used and semi-new vehicles will fall back as soon as the pace of vehicle manufacturing returns to normal.

The increase in scale of rental and subscription vehicles can also be an escape from the supply bottleneck experienced in the Brazilian market*.

🇧🇷With Jornal do Carro (State of S. Paulo)

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Source: Moneytimes

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