Debt and economic uncertainty keep new vehicle buyers at bay

Despite business confidence showing small signs of improvement in the fourth quarter, buyers of new vehicles are holding off making their purchasing decisions until economic uncertainty steadies.

This is according to Gary McCraw, National Director of the National Automobile Dealers’ Association, commenting on the latest new vehicle sales information released by the National Automobile Association of South Africa (NAAMSA).

The overall dealer sales channel for November 2019 saw 35 168 new vehicles (passenger and commercial vehicles) sold on dealer floors showing a – 4.6% decline in sales on dealer floors compared to October. Cumulative dealer sales year-on-year (November 2019 vs November 2018) saw 399 454 new vehicles sold on dealer floors year-to-date to November 2019 (2018: 413 346) showing a -3.4% decline on dealer floors year-on-year.

“It is tough going in the market at the moment and we all still wait for the green shoots to appear. As sales continue to decline and consumers buckle from the rising cost of living and economic uncertainty, other areas of business such as parts, workshop and pre-owned cars remain a key area of focus for franchised retailers,” concludes McCraw.

CAPTION: Tough going: Gary McGraw,  chair of Nada.

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