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Rise in dealer confidence
➲ Dealers had something to smile about in the third quarter
Simphiwe Nghona, new general manager of
the motor division at WesBank, presented
the 27th WesBank Vehicle sales Confidence
Indicator for the third quarter of 2014, to the
media in early October.
Nghona noted that, finally, there had been
some sales growth compared to the modest
vehicle sales figures achieved during the
first and second quarters of 2014.
According to WesBank, the third quarter
of 2014 reflected a high dealer confidence
level, the likes of which were last seen in
April 2013. Despite the interest rate hike in
July, the new vehicle sales outlook remains
positive, with dealers expecting business
sales to improve over the next few months.
Confidence levels among dealers are
positively influenced by vehicle launches
and innovative marketing activities of OEMs.
The prime lending rate is anticipated to be
the biggest factor to negatively influence
buying activity. Nghona said further
industrial action would reduce economic
growth, weaken the currency, and lead to
higher vehicle prices.
The first half of 2014 saw new vehicle
sales down 5.3% compared to the first
half of 2013. A resilient market and
unexpectedly strong sales in September,
largely driven by fleet sales, saw some
damage limitation. Year-to-date sales
ending September show the market has
recovered to end only 2.6% down.
Seemingly, buyers have gone back to
holding onto their cars a little while longer,
with inflated prices delaying the ability of
customers to return to the market.
On average, buyers are replacing their
vehicles 35 months after taking delivery
- 13 months before the vehicle’s value
has reached break-even point with the
outstanding loan amount - with the
shortfall funded by dealers through
various trade-in assistance programmes.
The rand will continue to play a major role,
with imported vehicles comprising 75% of
monthly sales and locally-manufactured
ones relying on imported components.
Fuel price remains the most volatile factor.
Consumers are spending more, with the
average new vehicle transaction price now
at R256 695, while the average used car
value has risen to R171 893. Applications
for used vehicle finance grew 29% yearon-year in September.
While WesBank initially forecast a market
decline of 0.6% with passenger cars
down 2% and LCVs up 2%, prevailing
economic conditions have forced a
revision. WesBank now expects the
passenger car market to decline 6.6%,
LCVs to remain stable and the total
market to decline 4.4%.
2015 South African Car of the Year Finalists Announced
The South African Guild of Motoring
Journalists (SAGMJ) has announced the
11 finalists for South Africa’s most coveted
accolade in the motor industry, the 2015
Car of the Year.
Bernard Hellberg Jr, vice chairman of
SAGMJ, says there was an overall judging
field of 208 vehicles that were launched
this year. Hellberg said, “The finalists are
the very best cars that are pushing the
boundaries of automotive excellence
in their respective categories based on
aesthetics, safety, performance and more.”
This year’s field of high achievers covers a
diverse range of vehicle brands. The short
list of finalists for the 2015 Car of the Year
are:
1.
Audi A3 TFSI
2.
BMW M4 coupe
3.
Citroen C4 Picasso – diesel
4.
Honda Accord V6
5.
Lexus ES250
6.
Mercedes Benz C200
7.
Nissan Qashqai
| Wheels in Action
108
8.
Porsche Macan S – diesel
9.
Renault 1.5 Duster
10. Subaru WRX Premium
11. Toyota Corolla 1.4 Prestige
The Car of the Year judging programme
is running for almost 30 years and is
sponsored by Wesbank for 27 years with
additional support from Motul and Hollard
Insurance. With so many choices on the
market, buying a new car can be difficult
but these awards offer independent advice
to help motorists make informed decisions.
november 2014