{"id":295824,"date":"2019-01-29T10:58:47","date_gmt":"2019-01-29T08:58:47","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=295824"},"modified":"2019-01-29T10:58:47","modified_gmt":"2019-01-29T08:58:47","slug":"this-is-how-much-south-africans-are-paying-for-their-cars","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/295824\/this-is-how-much-south-africans-are-paying-for-their-cars\/","title":{"rendered":"This is how much South Africans are paying for their cars"},"content":{"rendered":"

Overall, the South African car market faced another challenging quarter – although ended 2018 with a positive outlook.<\/p>\n

This is according to Credit bureau TransUnion’s latest Vehicle Pricing Index (VPI) which examines the link between the year-on-year price increases for both new and used vehicles, drawing data from a selection of South Africa\u2019s most popular passenger vehicles from 15 top-volume manufacturers.<\/p>\n

The group said that it was expecting new vehicle sales to have a challenging 2019 with flat to marginal growth.<\/p>\n

However, it noted that the used car market could potentially have more growth if quality used stock is available in 2019.<\/p>\n

“There are only so many levers manufacturers can use to stimulate market demand, including pricing, marketing incentives, trade-in assistance and tools such as residual value that can ease the pressure on consumers\u2019 cash flow,” said Kriben Reddy, head of Auto Information Solutions at TransUnion.<\/p>\n

“However, measures such as residual value can add up over time and push consumers out of the buying cycle.<\/p>\n

“At a dealer level, there are indications that the market is swinging toward used vehicles, which tend to have a larger margin than new vehicle sales. After-sales service is also a potential growth area for dealers and can ease the pressure from lower sales while the market recovers.”<\/p>\n

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According to TransUnion’s data, there has been a shift in the vehicles financed under R200,000 in 2018 as vehicles financed over R300,000 have been on average 5% higher in 2018 vs 2017.<\/p>\n

Notably, the report found that second-hand cars are still much more popular in South Africa compared to new vehicles.<\/p>\n

“The ratio indicates the finance houses are financing 2.03 used vehicles for every 1 new vehicle,” TransUnion said.<\/p>\n

“This follows the trend of the VPI where the new car prices have slowed down over the last year.”<\/p>\n

\n

Read:\u00a0These are the best cars in South Africa \u2013 across every major category<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The South African car market faced another challenging quarter – although ended 2018 with a positive outlook.<\/p>\n","protected":false},"author":10,"featured_media":220067,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11119],"tags":[26,11687],"class_list":["post-295824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-headline","tag-transunion"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/295824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=295824"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/295824\/revisions"}],"predecessor-version":[{"id":295858,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/295824\/revisions\/295858"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/220067"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=295824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=295824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=295824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}