Affordability remains the driving force behind new and used car sales
Park Village Auctions
Weighing on the results from the latest new vehicle sales statistics and the 2018 budget speech, Park Village Auctions’ head auctioneer, Clive Lazarus, believes that buyers will keep affordability top of mind in their future vehicle purchasing decisions.
Lazarus: “It’s somewhat of a mixed bag at the moment for buyers trying to navigate the new and used car markets. On the one hand, all the signs are pointing to reduced inflationary pressure and a stronger Rand making conditions for purchasing new vehicles favourable.
“The Department of Trade and Industry reported a 3.8% decline in aggregate domestic sales at the end of February 2018 compared to February 2017. However, NAAMSA (the national association of automobile manufacturers of South Africa) anticipates positive market developments over the medium term thanks to improvements in the Rand’s performance, the Reserve Bank’s leading indicator, increases in the purchasing manager’s index, and the resultant overall renewed sense of buyer confidence.
“On the other hand, we face VAT and vehicle emissions tax increases as well as a much higher ad valorem duty for premium vehicles. We also need to consider the 52 cent increase in fuel levies which invariably means that the cost of living is going to go up too.
“As the Automobile Association (AA) rightly points out, we would either need to see further decreases in the oil price or a sharp increase in the Rand to be able to absorb the hike in fuel levies coming into effect from the 1st of April.
“So while there may be some relief regarding the cost to acquire and finance a new vehicle, savvy buyers need to take running costs into account too.
“From our experience, we foresee that buyers will seek affordability above all else when it comes to purchasing new vehicles. South African buyers love to acquire new wheels, but they are smart about it and know where to seek out the best value for money.
“For this reason, our genuine bank repossessed vehicle auctions never fail to draw the crowds. Buyers know that they can get their hands on relatively new vehicles, often with manufacturer warranties, service plans and full-service history in place, for well below retail rates.” Concludes Lazarus.
Park Village Auctions hosts regular vehicle auctions throughout the country. These auctions offer thousands of genuine bank repossessed vehicles ranging from luxury SUVs, executive passenger sedans and superbikes to commercial cars and everything in between.
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