MOTORING: SA Car Market Remains Steady Throughout 2nd Quarter Of 2011
Recent Gauteng Business News
During the month of May, a total of 28 830 new passenger vehicles were sold in South Africa, 3 106 units more when compared to May 2010. On a year-to-date basis, the passenger vehicle market is up by 16.4%.
According to Chris De Kock, Executive Head of Sales and Marketing at WesBank, South Africa’s leading asset-based financial solutions provider, the year-to-date figure continues to reflect positively on the activity levels of the local vehicle sales industry, and is in line with WesBank’s annual overall industry vehicle sales growth forecast of 15.2% for 2011.
De Kock says that the latest WesBank book figures show a strong increase in monthly application figures. “During the month of May we received 86 900 applications, 9.7% up on May 2010.”
The latest statistics also reveal a slight month-on-month uptake on the average deal value for new cars from R195 523 in April 2011 to R203 202 in May 2011. “However, the average deal size for used vehicles has remained flat at around R126 500,” says De Kock.
WesBank data shows a steady increase in the new-to-used ratio so far this year, increasing from 1.51 in January 2011 to 1.67 in May 2011, in favour of used vehicles.
Latest data also shows that there is an upward trend on average deal duration year-on-year, increasing from 43 to 44 months in May 2011. “This shows that that the cycle has increased slightly over the last year, with consumers now waiting an extra month before replacing their current vehicle.”
De Kock says that with the threat of interest rate hikes later in the year looming, there has been an increased trend of people looking to fix rates in order to lock in the current low rates of interest. “Our data has revealed that the number of consumers choosing to fix their interest rates has increased by 8% year-on-year.”
Business News Sector Tags: Motoring|