INDUSTRY NEWS
Dealer deals lure buyers from used cars
There is a slowdown in the pre-owned market as more incentives are offered to buy new vehicles
There is a demand shift from used to new vehicles in SA, but the ratio of used car sales to those of new models is still at 2.09:1, which means that used sales are still more than double those of new cars. This is according to the TransUnion Vehicle Pricing Index for the first quarter of 2018. The slowdown in the pre-owned market is due to the fact that manufacturers and importers are limiting price increases to help their dealers sell more new vehicles in a tough market. New vehicle buyers are therefore being offered preferential financial terms, trade-in assistance, free accessories and manufacturer discounts to boost sales. Used passenger car finance deals have decreased by about 10% from the first quarter 2017 to the first quarter 2018, while finance deals for new cars have jumped 6% in the same period. During this comparison period new vehicle price inflation decreased from 8.8% to 2.4%, while used vehicle inflation is also marginally lower, from 3.7% to 2.9%. In the first quar...
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