New car prices could soar 25%

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DarkDenim

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The range of price hikes suggested by manufacturers, importers and industry analysts ranges from as high as 25 percent to a low of about 12 percent.
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Good luck to them.
 
I suppose they'd dearly like to think that raising the prices will bring in some actual profit. I don't see many people splashing out on new cars very soon though.
 
Like we're not getting completely ripped off as is. I hope this doesn't go through before insurance pays out on my stolen car or I may have quite a problem! (Not like I can really afford one now either, but I need it :p)
 
Luckily I never buy new cars. Second hand cars are much better value for money IMO. And I'm not talking about a 1988 Cressida :D
 
Slootvreter said:
Luckily I never buy new cars. Second hand cars are much better value for money IMO. And I'm not talking about a 1988 Cressida :D
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Agreed.

Hope new car sales will slow down to a crawl and stop altogether. It'll be the only way we can punch some sense into those numbskulls...
 
They need to stop milking the SA consumer and drop prices so they're in line with the rest of the world.
 
bwana said:
They need to stop milking the SA consumer and drop prices so they're in line with the rest of the world.
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I agree - but they won't.

All we can do is start a mass boycott.

But knowing the SA consumer, there will be only apathy.
 
I think government is pushing for carpools and public transport.
 
Watch as dealerships struggle to make ends meet and unemployment rockets. I beg them to increase their already excessive pricing.
 
This morning I received, via email, a quote from a local VW dealership on a Polo. The demo model I asked for a quote on, is R400 more expensive than the brand new one they quoted me on. Kinda funny, but very depressing at the same time, since both are too expensive!
I need money :(
 
Messugga said:
This morning I received, via email, a quote from a local VW dealership on a Polo. The demo model I asked for a quote on, is R400 more expensive than the brand new one they quoted me on. Kinda funny, but very depressing at the same time, since both are too expensive!
I need money :(
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Give it a little more time - they'll give in first.
 
Oh I'm not exactly in a rush. First the insurance needs to pay out, which may take some time, it seems. Also thought about getting a Bantam. The missus says it looks very manly and she doesn't like the Polo as much lol
A bakkie might be nice though.
 
Half of South Africa's 1700 franchised vehicle dealers are not making a profit and the financial viability of about 200 could be in jeopardy because of the slump in new and used-vehicle sales.

These dealerships employ about 48 000 people and closures are expected to accelerate from early 2009.

Eric Scoble of the National Automobile Dealers' Association said at least 100 000 unsold cars were standing countrywide.

Car sales, excluding those of Associated Motor Holdings, fell 22.7 percent in the first nine months of 2008 to 179 538. Year-to-date sales were 35 percent lower than in the same period in 2006'It is inevitable that dealer rationalisation will accelerate'- Brand Pretorius.

Brand Pretorius, chairman of McCarthy, the vehicle retail division of Bidvest, said the new-vehicle market could decline by a further five to 10 percent in 2009 because of global economic turbulence, aggravated in South Africa by political instability and an unfavourable interest rate.

He said vehicle affordability was being hit by a rise in new vehicle prices caused by exchange rate depreciation and by the further tightening of lending criteria by banks because of the capital squeeze and high levels of debt.

"Assuming such a scenario, it is inevitable that dealer rationalisation will accelerate," Pretorius said. "It's difficult to put a number to it but, of the 1700 franchised dealers, the viability of perhaps 200 could be in jeopardy."

Absa Vehicle and Asset Finance manager Marcel de Klerk said dealers had enormous stock levels'Some dealers have stock equivalent to 12 months' worth of sales' - Marcel de Klerk. Their ability to service the debt on their showroom floors would become a crisis if sales continued to slide by more than 20 percent year-on-year in the last quarter of 2008.

De Klerk said Absa was already talking to some of its customers about putting financial packages in place to try to reduce their stock holdings. Some dealers had stock equivalent to 12 months' sales.

"From a motor industry perspective, we have never seen it this tough. There will be no positives for the industry in 2009 - we're in this until 2010."

Associated Motor Holdings chief executive Manny de Canha forecast in July that about 100 dealers would close during this market slowdown.

He said overstocking was prevalent countrywide but dealers had been adjusting to the decline in the market since 2006. The market had not bottomed yet because global turmoil would further slow the economy.
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Go ahead and increase new vehicle prices fools :D

source
 
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