INDUSTRY NEWS
Vehicle sales to fall short of predictions
Used car sales continue to increase but so do the prices of pre-owned cars which could cause a shift back to new
The South African motoring industry’s first quarter of 2017 was characterised by a slight strengthening in the performance of the rand. Yet the positive benefits of a sturdier currency were short-lived, according to the TransUnion SA Vehicle Pricing Index (VPI). It is expected the industry will fall short of WesBank’s 2017 prediction at the Car of the Year event of a 1.7% increase in total vehicle sales. The VPI report examines the link between the year-on-year increase in vehicle pricing for new and used vehicles, drawing data from a basket of passenger vehicles incorporated from the top 15 volume manufacturers. Data from across the industry is used to create the VPI. The report revealed an increase in pricing for new vehicles to 8.8%, up from 6.6% in 2016’s first quarter. Used-vehicle prices have risen from 2.2% in 2016’s first quarter to 3.7% in 2017’s first quarter. A slight surge was evident in vehicle sales in the first quarter before the large drop in April. Volkswagen and To...
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