Rising demand for motor vehicles supported by improving market conditions is giving rise to a sustained improvement in sales across all sectors of the trade.
The most accurate indication of this is the strong rise in new vehicle sales last month, which recorded the movement of vehicles off dealership floors leaping by 1 260 units from 35 086 units in 2017 to 36 346 units this year – a significant increase of 3.6% year-on-year.
According to one of the country’s leading auctioneers, Clive Lazarus of Park Village Auctions, the recent increases in new car sales will have an inevitable knock-on effect for all sectors, including the used motor vehicle and auction sectors.
This is because of improved availability of stock in the form of trade ins and out-of-hand sales of cars being replaced.
“Another unforeseen consequence of increased motor vehicle sales is unfortunately the defaulting of repayments of a certain percentage of buyers whose vehicles will have to be repossessed to cover costs.
“Along with out-of-hand sales of cars on auctions, this influx of repossessed vehicles gives rise to large-scale auctions of these cars which further stimulates overall sales.
“At present this means that buyers have every opportunity of finding a car that is right for them, whether it be a new or second-hand vehicle, or their dream car at the right price on auction.
“With rising disposable income of consumers, improvements in South Africa’s political and policy environment, lower interest rates and the maintenance of an investment grade rating with a stable outlook by a major credit ratings agency, it is as good a time as any to buy a vehicle.
For more information contact Park Village Auctions on 011 789 4375 or go to parkvillageauctions.co.za