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6 reasons why South Africans aren’t buying cars

2014-06-03 10:17

NOT ALL DOOM AND GLOOM: It's expected South Africa's vehicle exports will benefit from growing international markets during the second half of 2014.Image: Shutterstock


Year-on-year South African new vehicle sales declined by 9.2% in May 2014, the National Association of Automobile Manufacturers of SA (Naamsa) said on Monday (June 2 2014).

Naamsa said: "The South African economy is losing momentum and risking moving into recession.

"The decline in first-quarter GDP to negative levels, the dramatic decline in the purchasing managers' index... the sharp rise in producer inflation and the worsening trade deficit all confirm the advent of a more difficult economic environment."

Wheels24 reader JANNEMAN POGGENPOEL lists six reasons why South Africans are not buying more cars:

1 For starters, I can buy an exported vehicle manufactured in SA, for less overseas than I would locally.
2 Year-on-year price increases are way above inflation.
3 Vehicle prices are preposterous if you compare it to other countries, with the excuse that our vehicles have way more equipment etc.
4 Interest rates put vehicle ownership out of the reach of most SA people.
5 Dealers add a lot of 'administration' costs on top of the vehicle purchase price which is just plain greedy. This is purely to cover the costs of an over-bloated staff compliment.
6 Lastly, don't forget you're getting peanuts for a trade-in.

The public is not that gullible anymore, we'd rather hang on to our current cars.

Wheels24 reader Joe Jacobs responds: "I concur completely. Cars are way to expensive. The way automakers go about sales will lead to the failure of the new car market.

"I'm looking to buy a vehicle but will look at the second-hand market very carefully. I'm not driven by brand names. Furthermore, the manufacturers are arrogant and poor service is now becoming a regular trait."

Do you agree/disagree with JANNEMAN POGGENPOEL? Email us and we'll publish your thoughts on Wheels24

Read more on:    naamsa  |  south africa  |  ugc  |  readers

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