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Cape Town - South African new vehicle sales continued to decline in October, according to the latest sales data from the National Association of Automobile Manufacturers of South Africa (Naamsa).
Sales totaled 54 244 vehicles, representing an 8.6% year-on-year decline, with the biggest decreases seen in sales through the government and rental channels.
Government channel sales decreased by 25.7% year-on-year. Similarly, sales to the rental market saw a sharp drop of 23.8% compared to October 2014. However, sales through the dealer channel, which accounts for consumer sales, only declined 2% over the same period.
Year-on-year decline
Total passenger car sales saw a year-on-year decline of 10.9%, with 36 175 vehicles sold. October saw 15 171 sales of light commercial vehicles (LCVs), a market decline 4.1%. Despite this, LCV sales through the dealer channel grew 1.5% year-on-year.
Click to here for full October Naamsa sales
Simphiwe Nghona, CEO of Motor Division at WesBank, said: “The current macro-economic headwinds are mirrored in this sales decline. With prevailing low confidence levels, corporates are not spending money acquiring new or replacement assets, choosing instead to hold onto their capital.
“With a forecast of subdued growth in the GDP, coupled with various other economic factors, we don’t expect sales to improve.”
Top sellers in October 2015:
In line with the smaller sales declines through the dealer channel, record numbers of finance applications were received in October. Finance applications for new vehicles grew 7.5% year-on-year.
Wesbank shares advice
Nghona said: “When budgeting for a new vehicle purchase consumers should also consider associated costs, to ensure they are approved for finance. These costs include insurance premiums, petrol, license fees and vehicle maintenance.
"Buyers can also structure their finance contracts to improve affordability. Longer contract terms can make instalments more affordable, and paying a large deposit will also be very beneficial."
