July’s unexpected rebound in new car sales is a sign of better things to come, banks said on Tuesday. Shrinking interest rates, a stronger rand, slowing prices and lower household debt were all emboldening consumers to dip their toes back into the market. "As long as there are no more unpleasant economic or political revelations, I think this could be the start of a turnaround," Standard Bank executive Nicholas Nkosi said. Figures published by the Department of Trade and Industry showed new car sales grew 6.2% in July compared to the same month in 2016, from 29,035 to 30,826. This was almost wholly responsible for a 4.1% improvement in the overall market, including trucks and buses, from 44,870 to 46,719. Sales of light commercial vehicles rose 1.7%, but heavier vehicles all showed declines. A 25 basis-points drop in interest rates in July was too small and too late in the month to have a notable impact on the market, but WesBank’s Rudolf Mahoney said it sent consumers a positive me...
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