Wheels24

Hurry! Buy a new car now - RMI

2013-05-14 08:47

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.”

FORECAST GROWTH

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.

ANNUAL CAR TESTS

“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.”

Comments
  • Christi De Vos - 2013-05-14 09:23

    Yes that is all fine but have look at the trade inn offers they are insane 60k and 70k behind book on R215k car

  • Henk Roux - 2013-05-14 09:56

    New car prices are over-inflated already. An 8% hike won't make a difference at all to the new car buyer, the sort of person that will be afforded credit. It will only affect the second-hand market.

  • Saud Abrahams - 2013-05-14 10:03

    We are already paying too much for new cars. Its absolutely pathetic that we get ripped to shreds here in SA and we're to be blamed. We live above our means and buy expensive cars some can't afford. The companies take advantage of growth and cash in big time. We should reverse this mentality and make them feel!

  • Gerald Majola - 2013-05-14 10:23

    Jeff Osborne is an idiot. He was on the radio a few years ago and when a caller asked about kick backs from bank finance he replied that it was "news to him". He is either a liar or stupid. Top Tip, negotiate on a new car by pretending that you are going to use their finance house, then at the last minute pay cash (if you can). They would of already factored in their 5K kick back and you will pay less in the end.

      Thando Gqabaza - 2013-05-14 10:25

      I fully agree with this comment - lots of collusion there

      Christi De Vos - 2013-05-14 10:46

      Exactly the same with the trade buyers as they call them years ago you could drive from dealer to dealer to get trade inn prices on your vehicle. Today most dealerships are owned by group of companies. Now you need to upload your details on as system and the 5 buyers will decide what they pay you for your car. You think there is no money or kickbacks happening here please.

  • Elisha Musindo - 2013-05-14 10:52

    The motor industry is over protected buy government. Open it up and you will see the prices fall like Cell C charging at 99c a minute.

  • Freddie Jones - 2013-05-14 10:58

    The motor dealers are more interested in lending you money than selling you a new car. I was offered a discount if I 'financed' a new car and NOTHING if I paid cash. Currently in the UK it is routine to get 20% discount on a new car. Remember, this is off a list price that is already considerably lower than the South African list price AND the UK have a much higher VAT rate than us. See: http://www.telegraph.co.uk/motoring/festival-of-motoring/10030980/Why-you-should-never-pay-list-price-for-a-new-car.html or http://tinyurl.com/cac2rr5

  • Tieno Bloubul - 2013-05-14 16:32

    Agree with the overpriced rip offs, then on top of that dealerships add about another R 5000 to the ridicules price which they call a "on the road" charge, meaning the buyers effectively are covering their overheads. Top tip, don't buy a new car, wait for some poor sod to take the fall, walk in and get it almost brand new and then you pressure the sales person to drop the price even lower than they want to sell it for. They bargain on our snob attitude of buying new cars.

  • Graeme Stockwell - 2013-05-15 07:55

    The Retail Motor Industry Organisation make the press release every year when sales are slowing down - bunch of w....rs

  • pages:
  • 1