Car auctions ‘offer real value’

Forecasts for 2017 suggest another difficult year ahead for the local car industry.

High new vehicle prices, a sluggish economy, increasing petrol prices and pressure on household disposable income are making it that much more difficult for the average South African to afford a new car fresh off the showroom floor, says Park Village’s Clive Lazarus.

He says the results of a report recently published by the National Association of Automobile Manufacturers of SA shows a double-digit fall in annual sales volumes. Specifically, aggregate sales of passenger, light, medium and heavy commercial vehicles have fallen 11.4%.

Conversely, and further bolstering the argument for the used car market’s prospects in 2017, Wesbank saw finance applications for used vehicles increase 3.4% towards the end of 2016.

“Those looking to buy a vehicle this year should consider car auctions which represent a genuine, safe and affordable platform from which to buy a car. This is particularly pertinent in a market where consumers need the assurance of knowing that their money is being well spent.

“What’s more is that discerning consumers know that when times are tough there is real value to be had at auctions and that many of the most desirable brands will be available at good prices,” Lazarus says.

He says that while it is predicted that domestic sales will regain some traction in the second half of 2017, relatively high interest rates averaging 13%– 14.5% look set to remain, which will in all probability motivate purchases in the auction sector.

An assortment of genuine bank-repossessed passenger, commercial and executive motor vehicles will go under the hammer on February 8 from 10.30am.

The auction will take place at PVA’s Bank Repossession Centre at 221 Main Road, Martindale, Johannesburg.

The vehicles can be viewed one day before between 9am and 4pm at the same location.

SLUGGISH ECONOMY … IS MAKING IT MORE DIFFICULT FOR THE AVERAGE SOUTH AFRICAN TO AFFORD A NEW CAR