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How Much Will The Dealer Turnover Decrease Due To Non-working Days In April?

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How Much Will The Dealer Turnover Decrease Due To Non-working Days In April?
How Much Will The Dealer Turnover Decrease Due To Non-working Days In April?

Video: How Much Will The Dealer Turnover Decrease Due To Non-working Days In April?

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In the days from March 30 to April 30, most trade enterprises in Russia were forced to close: by presidential decree, this period was declared inoperative due to the coronavirus pandemic. Most businesses and organizations, including car dealerships, are prohibited from working, but many of them continue to communicate with customers remotely: online and by phone, and some have even established a contactless process for selling and delivering cars to customers. In addition, the authorities of some regions have allowed the operation of service centers.

How much can the turnover of dealerships decrease if the self-isolation regime in Russia lasts until the end of April? We've calculated.

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As we thought

In their calculations, Avto.ru analysts took into account the possible proceeds from the sale of new and used cars based on the average prices from official dealers - 1.7 million and 950 thousand rubles, respectively. In normal times, dealers receive about 70 percent of their revenue from new cars and 15 percent from used cars.

In addition, dealers earn on service, spare parts, additional equipment, as well as loans, insurance and other related products - this brings them about 15 percent of monthly revenue. However, we assumed that some of the clients will nevertheless turn to dealers for certain services, and that revenue will fall not by 100 percent, but only by half.

Help for dealers

Automotive.ru supports dealers in this difficult time: since March 28, we have sharply reduced the cost of placing ads and changed the terms of payment for calls. This will help to get new customers at a minimal cost and provide pent-up demand after the restrictions are lifted. Read more about the new conditions here.

Earlier, the Association of Russian Automobile Dealers (ROAD) asked the government to consider measures to support dealers, and the dealers themselves asked for help from importers.

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