Khodrocar - The devaluation of the national currency, on the one hand, and the exorbitant increase in the price of raw materials and production costs, on the other, have made the tendency to buy in the car market weaker than ever, raising the question that the current priority of the car industry should be based on diversity. Is it a product or solutions to increase purchasing power?
"All over the world, car purchases are made in installments, and since more than 80% of the price of a car goes back to its raw materials and parts, the remaining 20% also includes service costs, so since Prices are globalizing, cars can’t be deliberately reduced.” Saeed Madani, former manager of SAIPA group told khpdrocar reporter.
"In this situation, car installment sales through leasing companies and installment sales methods are proposed because it is not possible to reduce car prices because in the long run, the company incurs losses, which has already happened in the car industry.” He said.
"Due to the allocation of interest to these companies, prices will increase according to this rate, but nevertheless, selling cars in long-term installments will lead to the return of people's purchasing power, and this is the only way now because more than 80% of cars Production in the world is sold in installments.” He added.
” If the interest rate is to be levied like the car rate and leasing companies are not allowed to make more profit, this will not be welcomed because if the leasing company wants its capital turnover, it must have at least 5 to 10 percent monthly profit margin and 20 to 25 Have an annual profit percentage to have an incentive to create and continue operating in this category of companies.” He continued.
"If stray capital is invested in leasing companies, these companies will be established, so there should be no restrictions, but if there is a limit based on economic reality, there is no problem, but when the bank interest is determined by order. The profit of these companies should also be 5 to 10 percent higher than the interest of bank deposits, so if these numbers are determined realistically, leasing companies will be established.” He said.
"The former CEO of Saipa Automotive Group emphasizes in the end that for the initial capital of these companies, a large amount is needed to be injected through the private or public sector to provide the initial capital for the establishment of these companies, after which these companies can In the short and medium term, try to return this number.” He continued.