As the World Cup came to a close in Brazil, the country’s overall car market continued to develop, although new car sales have been no more impressive than the national team’s World Cup performance. The new car market has been buoyant in previous years, although it was down -10.2% from January to June 2014, compared with 2013. Perhaps the World Cup drew Brazilians away from car buying in June as the monthly data showed new car sales down -19.3%, compared with June 2013. In fact it was the worst June sales performance since 2010, according to website, focus2move. At the same time, the used market has continued to go from strength to strength.

In the first five months of 2014 the number of used car transactions grew year on year by 6.2% to 5.1 million vehicles. This figure includes cars, light commercials, heavy trucks and motorcycles.

One of the main reasons for growth is the improved access to finance being offered by Brazilian banks, aided by more sophisticated valuation data being made available when they underwrite a finance agreement. A number of providers now offer future used vehicle market valuation data and with used prices generally quite strong, pre-owned vehicles have become affordable on finance.

Brazil comprises a market of around 200 million people, of which around 90 million is an emerging class of people who consider owning a car as giving them a higher status in society. This emerging class cannot afford to buy a new car and is not eligible to finance a new one; therefore a used vehicle is the preferred choice.

Industry statistics from Fenauto estimate that 40 million people already own a used car, which gives some idea of the size and potential of the Brazilian car market.

The young and dynamic nature of the automotive industry has meant an immediate acceptance to buying or selling a vehicle online. Currently around 40-50% of cars from the corporate sector are being sold online compared to 50-60% of private cars, with industry experts expecting this to continue to grow.

Autorola is set to bring a much more sophisticated transactional platform to the online sector with payment protection for the buyer and real time bidding that has been innovated from 13 years of systems development.

‘Autorola has worked in relatively young and fast growing car markets before and there is an immediate acceptance of online trading,’ explained Marly Filaho, Autorola Brazil’s country manager.

‘Both buyers and sellers are content to use online, particularly those who are based in cities like Sao Paulo where driving to a meeting or visiting a physical auction a few miles away could take the best part of the day.

‘Brazil’s road and traffic management infrastructure has not kept pace with its population or economic growth so online buying and selling works across many industry sectors,’ she added.