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Head of TransUnion Auto in South Africa, Kriben Reddy, says that although new car sales were up, record-high fuel prices and a higher VAT rate saw consumers delaying purchasing decisions in the used car segment, which affected the entire market negatively.
Wheels24 spoke to Reddy as he shared some insights behind the vehicle pricing index, finance deals and how fuel prices affect car prices in South Africa.
Reddy says: "Rising fuel prices is a significant contributor to the decline in vehicle sales. Rising fuel costs contribute to added pressure on consumers already strained disposable income. During these periods consumers generally hold back on entering the vehicle buying cycle as added pressure drives consumer confidence down.
"Consumers will either hold on to their existing vehicles for longer or buy down into cheaper, more affordable segments."
Reddy says: "Rising fuel prices is a significant contributor to the decline in vehicle sales. Rising fuel costs contribute to added pressure on consumers already strained disposable income. During these periods consumers generally hold back on entering the vehicle buying cycle as added pressure drives consumer confidence down.
"Consumers will either hold on to their existing vehicles for longer or buy down into cheaper, more affordable segments."
