The latest Naamsa figures show that South Africa’s new vehicle sales are continuing to decline, with more and more buyers turning to the used market.
Passenger car sales through the dealer channel, which is generally representative of consumer activity, fell 13,8% in November. Year-to-date, new vehicle sales are now down some 11%.
WesBank points out that sales volumes for premium brands have “declined noticeably”. And, according to the credit institution, the average value of a new vehicle financed in November 2016 stands at R293 500.
This figure represents a year-on-year increase of around 12%, from the R262 403 reported in November 2015.
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“Consumers continue to battle with affordability in the new market. This is most evident in the premium segments, where sales have fallen markedly,” said Simphiwe Nghona, CEO of Motor Retail at WesBank.
“The majority of these premium models are imported and have been heavily impacted by the poor performance of the rand. These customers are either downgrading and buying more affordable models from mainstream brands, or moving to the used market,” he added.
November saw record demand for used vehicles, with WesBank receiving 103 713 finance applications for pre-owned models – or 9,8% growth compared to November 2015. The average used car financed in November cost R190 500, some 5% higher than the same period last year.
“There are many marketing incentives and finance assistance offers from dealers and manufacturers at the moment,” said Nghona.
“Consumers should consider these and take the best deal, rather than looking for a specific car,” he advised.
