INDUSTRY NEWS
Another tough year for car makers, buyers
Mark Smyth looks at some of the trends we can expect in 2017
Last year was a tough year. It was hard for consumers and hard for the automotive industry. 2017 is not looking as though it will be any better. Some economists predict not one, but two, interest hikes. Many car companies will come to the end of their period of forward cover resulting in increases in car prices and the fuel price is also likely to go up. There are other factors too. Exchange rate fluctuations can happen for any reason and not even because of events here in SA. We are affected by what happens in the US and elsewhere and our market responds to major international decisions. More pressure Household debt has improved but is still high, putting yet more pressure on consumers who are either holding on to their cars for longer or turning to the pre-owned market. The car makers are going to have to work harder to persuade us into a new car. It is looking positive for the pre-owned market though, which increased dramatically in 2016 and which will benefit again in 2017. Many...
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