It said that for every new vehicle financed, 2.49 used cars are being financed.<\/p>\n
\u201cThis consumer shift opens up new possibilities for the industry in terms of used vehicles and it is worth noting that 40% of all used vehicles that were financed in this quarter were less than two years old. This 40% can be further broken down into 25% of vehicles that are under a year old, while 15% are under two years,” said Derick de Vries, CEO, Auto Information Solutions at TransUnion.<\/p>\n
\u201cBut as the demand for used vehicles increases and supply comes under pressure this is likely to push the price up on used vehicles further and a shift back to the new car market,\u201d de Vries said.<\/p>\n
Read: South Africa\u2019s used car prices vs the world<\/a><\/strong><\/p>\n Price trend for vehicles finance since 2011<\/strong><\/p>\n Mahoney attributed poor sales numbers to buyer uncertainty.<\/p>\n Two indicators of this uncertainty among consumers are seen in WesBank\u2019s data. In May, there were year-on-year increases for average deal duration in both the new and used market. Statistics showed that consumers were hesitant to replace their vehicles, with the replacement cycle extending by 9% compared to May last year.<\/p>\n Affordability and value-for-money also continue to factor into purchase decisions. Demand for balloon payments has risen 13%, year-on-year, showing that consumers are seeking ways to lower monthly instalments.<\/p>\n The demand for used vehicles continued unabated, Wesbank said, with the used-to-new ratio reaching 2.37-to-1 in the past month, not far off the ratio supplied by TransUnion’s data.<\/p>\n \u201cA lot of uncertainty exists as a result of recent economic developments, making it difficult to accurately predict the outlook for the motor industry for the remainder of the year,\u201d said Mahoney.<\/p>\n Applications volumes for new cars reached 39,637 in May, versus 93,924 applications for used vehicles.<\/p>\n The bank noted that that the average value of a new car financed last month hit R295,500, up from R279,116 a year ago.<\/p>\n Volkswagen and Toyota have captured more than 50% of the new car market, and lead the used car market as well<\/span>, TransUnion’s data showed.<\/p>\n <\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2017\/04\/TransUnion-e1492679774728.jpg\"){kind=spacer}
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