Sales of new vehicles jump 3.6%

Increasing demand for cars, supported by improving market conditions, are giving rise to a sustained improvement in sales across all sectors of the trade.

The most accurate indication of this is the strong rise in new vehicle sales in April, which recorded sales leaping by 1,260 units from 35,086 in 2017 to 36,346 units in 2018, a significant increase of 3.6% year on year. According to one of SA’s leading auctioneers, Clive Lazarus, of Park Village Auctions, the recent increases in new car sales will have an inevitable knock-on effect for all sectors, including the used vehicle and auction sectors.

This is because of improved availability of stock in the form of trade-ins and out-of-hand sales of cars being replaced.

“Another unforeseen consequence of increased motor vehicle sales is, unfortunately, the defaulting of repayments of a percentage of buyers whose vehicles will have to be repossessed to cover costs.

“Along with out-of-hand sales of cars on auctions, this influx of repossessed vehicles gives rise to large-scale auctions, which further stimulates overall sales. At present this means that buyers have every opportunity of finding a car that is right for them, whether it be a new or second-hand vehicle, or their dream car at the right price on auction,” Lazarus said.

“With rising disposable income of consumers, improvements in SA’s political and policy environment, lower interest rates and the maintenance of an investment-grade rating with a stable outlook by a major credit ratings agency, it is as good a time as any to buy a vehicle.”