The impact of the expected fuel price increase in May will be wide-reaching, says George Mienie, CEO of AutoTrader.
Based on the latest-available data, motorists can expect a petrol price increase of around 55 cents in May, pushing the price per litre to well over R16.
Mienie said that the increase will likely see banks tightening their belts as some motorists place purchasing decisions on hold.
“Motorists are already feeling the pinch. With the next fuel increases, they will have to tighten their belts even further. This may well include delaying the purchase of a vehicle,” he said.
“When buying a new or used car, motorists will take a very close look at fuel consumption.
“They will shun so-called ‘gas guzzlers’ in favour of more sensible, economical vehicles, including hybrids.”
However, it’s not all bad news and car manufacturers are likely to offer good deals to attract sales, he said.
“Manufacturers will consciously keep price increases to the bare minimum, to boost customer sentiment and encourage vehicle sales.
“Retailers, eager to generate sales, are likely to offer good deals. This will mean that margins at both dealer and OEM level will come under pressure.”
Below he outlined the most searched for budget cars in South Africa, according to AutoTrader data.
Volkswagen Polo (including Polo Vivo and Cross Polo)
Hyundai i10 (including the Grand i10)
Nissan Micra (incl the Micra Active)