WESBANK – ECONOMIC SLOWDOWN AFFECTS NEW VEHICLE SALES

car-sales

01 September 2015: The slowdown in economic growth, combined with interest rate hikes, has negatively impacted South Africa’s new vehicle sales. According to the latest figures from the National Association of Automobile Manufacturers of South Africa (Naamsa), sales of new vehicles during August declined 8.2%, year-on-year.

A total of 51 055 new vehicles sold in August, compared to 55 610 in the same month last year. Passenger car sales declined 7.8%, year-on-year, with sales of 34 885. Light commercial vehicle (LCV) sales for the same period also declined 7.8%. Sales were down across all channels: dealer, rental, and government.

“Consumers and business have been under pressure all year, but July’s interest rate hike and the rand’s dismal performance this past month have taken a toll on the new vehicle market,” said Simphiwe Nghona, CEO of WesBank’s Motor Division. “New vehicle sales are regarded as a leading indicator for the country’s GDP. Looking at the monthly sales, which continues to trend downwards, it could be an ominous sign of things to come.”

WesBank’s data shows  a sizeable increase in the demand for balloon payments. The number of deals incorporating balloon payments increased 32%, year-on-year, with nearly a quarter of all new cars financed making use of the facility. Additionally, the value of the balloon – the portion of the borrowed amount that will need to be repaid as a lump sum – has crept past the 30% mark.

“This month’s drop in the fuel price will be welcome, but this is ultimately only one piece of the motoring puzzle. Consumers cannot and should not rely on this small saving to plan their budgets,” said Nghona. “The sharp uptake in balloon payments is concerning. People are using this as a measure to make monthly instalments more affordable, but my best advice is to choose a more affordable car and avoid a balloon altogether.”

Comments are closed

RELATED ARTICLES:
Lamborghini 360° Video at the Geneva Motor Show
lamborghinie-360-video
Standard Bank – Triple blow loads additional costs on road transport operators
Toni-Fritz
RAGE EXPO – Virtual Reality and Virtual Tour of the Gaming Expo
Teslasuit Virtual Reality Body suite – Feel reality.
virtual-reality-body-suit
Want to buy an Oculus Rift Virtual Reality Headset?
pre-order-oculus-rift
LeBron James Virtual Reality Film
lebron-james
360° Virtual Reality will change movies forever
virtual-reality-movies-1024x534
How to connect and play Virtual Reality PC Games on your Smartphone
play-Virtual-Reality-PC-Games-on-your-Smartphone-1024x576
Finexus – Virtual Reality Finger Magnet Controller
Finexus-1024x692
Virtual Reality Medical and Psychology Gender research
Virtual-Reality-Medical-and-Psychology-Gender-research-1024x564

3D Car Shows on Google+

3D Car Shows on Youtube

3D Car Shows YouTube