TransUnion has released its latest Vehicle Pricing Index (VPI), showing that the South African car market came under renewed pressure in the first quarter of 2019, as the effects of fuel hikes, challenging economic conditions and electricity outages caused by load-shedding took their toll.
The index measures the relationship between the increase in vehicle pricing for new and used vehicles from a basket of passenger vehicles which incorporates 15 top volume manufacturers.
TransUnion’s data showed that new and used passenger finance deals have decreased year on year by 10% and 8% respectively.
This decline, the group noted, has broader ramifications for the entire economy, as the automotive industry contributes an estimated 7.7% to South Africa’s annual GDP.
The effects of prolonged pressure on consumers can be seen through the fact that more consumers are buying used vehicles than new vehicles. The TransUnion VPI report shows the used-to-new vehicle ratio declined to 2.13 from 2.09 in the previous quarter, which means that 2.13 used vehicles were financed for every new vehicle financed.
The percentage of cars – both new and used – being financed below R200,000 remained steady at 37%, which is consistent across the last three quarters.
More than a third (35%) of used vehicles sold were less than two years old, with 10% being demo models, the data found.
Below BusinessTech looked at some of the popular passenger vehicles below the R300,000 price range based on the Naamsa’s list of best-selling cars for March 2019.
Volkswagen Polo Vivo – from R191,400
Volkswagen Polo (includes Sedan) – from R216,300
Renault Kwid – from R132,500
Toyota Corolla Sedan – from R280,100
Hyundai Grand i10 – from R167,900
Ford EcoSport – from R254,950
Toyota Etios – from R179,500
Ford Figo – from R182,900