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Hurry! Buy a new car now - RMI

2013-05-14 08:47

TIME TO TAKE OUT YOUR WALLET: According to RMI CEO, Jeff Osborne, the time to buy a car is now in 2013. He also predicts a rise in sales by 8%. Image: AFP

While fierce competition has constrained the level of car price increases Jeff Osborne, CEO of Retail Motor Industry Organisation, says a number of factors could lead to price jumps later in 2013.

Osborne said: "Now, therefore, the right time to buy, while interest rates remain low and there is a range of excellent deals on offer.”


According to Fleet magazine, Osborne predicts sales of new cars in 2013 will rise by 8%. This in contrast to a WesBank forecast of a stagnant market in 2013.

“Am I insane? I’ll tell you next January,” Osborne grinned during an interview with Fleet magazine.

In 2012, RMI forecast 10% growth in the new car market. The National Association of Automobile Manufacturers of SA reports that the actual growth rate in 2012 was 11.3 % for new cars, with the overall vehicle market growing by 9.2%.

Naamsa predicts total vehicle sales in 2013 will increase by 7.3% but Osborne has warned fleet bosses not to wait too long before they start thinking of re-fleeting

“It could be a year of two halves, with price rises having a greater impact in the second half of the year. So seize the opportunity – it's an excellent time to buy a new vehicle – there is robust competition and extraordinary offers. You are getting more car for your money than ever before.

“Many people are driving three or four-year-old vehicles which have enough residual value to enable them to do a trade-in deal for a brand-new vehicle. I also expect a good year for sales of used cars, as the price gap widens between new and used – so I expect a buoyant market in 2013.”

Osborne shares Naamsa’s optimism that there will be a big rise in vehicle exports in 2013, with the manufacturers’ organisation having predicted an increase from the 3.5% year-on-year rise in 2012 to 30% in 2013. RMI has welcomed the introduction of the APDP, which is the new government scheme to support auto manufacturing and exports.


“The aim is to double production from 550 000 vehicles in 2012 to 1.2-million by 2020,” Osborne said. This will be good for jobs and good for exports and there is greater emphasis on local content, incentivising manufacturers to use more local components.”

Roadworthy tests similar to the British MOT (Ministry of Transport), an annual test of car safety and roadworthiness, may also be implemented in 2012. 

“The RMI has long called for this and not just because it would boost the business of our members. Of course if we keep our vehicles in better condition, repair, service and maintenance will be boosted, which is good for the industry. 

“But we have seen again from the festive season numbers that far too many South Africans are dying on the roads. A better-maintained fleet of vehicles will reduce the number of accidents, reducing the scale of death and injury.”
Read more on:    rmi  |  good news  |  car sales

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