{"id":421076,"date":"2020-08-01T11:00:18","date_gmt":"2020-08-01T09:00:18","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=421076"},"modified":"2020-07-31T16:13:53","modified_gmt":"2020-07-31T14:13:53","slug":"car-buying-trends-have-changed-in-south-africa-during-lockdown","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/421076\/car-buying-trends-have-changed-in-south-africa-during-lockdown\/","title":{"rendered":"Car buying trends have changed in South Africa during lockdown"},"content":{"rendered":"

The South African car market has seen a shake-up during the country’s coronavirus lockdown as consumers and dealers face a heavily constrained environment, the latest TransUnion SA Vehicle Pricing Index (VPI) shows.<\/p>\n

The group noted that the local motor industry was closed during April, operated at minimal capacity in May, and only resumed full operation in June.<\/p>\n

According to the National Association of Automobile Manufacturers of South Africa (Naamsa), there\u2019s been an annual decline of 65% in new passenger vehicle sales in Q2 2020 (vs Q2 2019), with an annual decline of almost 100% in April 2020 because of lockdown.<\/p>\n

“With negative sentiment on the rise, the auto industry hasn\u2019t been able to recoup sales lost in April and auto dealers are facing a difficult 2020 – as higher prices and growing financial strain take their toll on consumers,” it said.<\/p>\n

The VPI shows that total financial agreement volumes in the new and used passenger market have dropped by 71% year-on-year from Q2 2019.<\/p>\n

This decline can be ascribed to minimal trading by dealers and a depressed economy, said TransUnion. The group noted that South Africans are also increasingly turning to used cars.<\/p>\n

\"\"<\/a><\/p>\n

“The used-to-new ratio has been trending upward after lockdown to an average of 2.31 in Q2 2020 vs. 2.16 in 2019.<\/p>\n

In the used vehicle market, 33% of vehicles sold are under two years old \u2014 an ongoing trend for Q2 2020, it said.<\/p>\n

“Demo models financed made up 6% of used financed deals, indicating consumers are choosing older vehicles as pressure on disposable income increases.”<\/p>\n

What people are paying<\/strong><\/p>\n

TransUnion’s data shows that South Africans are also increasingly targeting cars in the sub-R200,000 range.<\/p>\n

Where consumer purchasing power appeared to be growing throughout 2019, this has been pushed back with a shift to financing new and used vehicles under R200,000 over the past quarter.<\/p>\n

“We expect this trend to continue during 2020 as market sentiment continues to decline, while increases in vehicle pricing are likely to cause a drop in vehicle finance in the over R300,000 price bracket,” it said.<\/p>\n

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Read: Here are the new driver\u2019s licence and vehicle disc expiry dates for South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The South African car market has seen a shake-up during the country’s coronavirus lockdown as consumers and dealers face a heavily constrained environment, the latest TransUnion SA Vehicle Pricing Index (VPI) shows.<\/p>\n","protected":false},"author":10,"featured_media":406615,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11119],"tags":[26,11687],"class_list":["post-421076","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\/421076","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=421076"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/421076\/revisions"}],"predecessor-version":[{"id":421730,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/421076\/revisions\/421730"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/406615"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=421076"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=421076"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=421076"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}