New Car Sales Analysis

[FiestaST]

"The average new vehicle transaction price has risen steadily to R256 695 in September, while the average used car value has broken the R170 000 mark for the first time at R171 893. On average, buyers are replacing their vehicles after 35 months, 13 months before the vehicle's value has reached a break-even point with the outstanding loan amount."

The above quote is from WesBank in context of the 21% increase year on year for September new car sales.

So to have an avg of R250k + financed means that are an amount of buyers financing much more substantial amounts.

And replaced after only 35mnths on avg; highly inefficient hey?!

 

[creeper]

In effect, people are renting cars, not buying them.

 

[Voicy]

Average price here is 1.75x that amount. :/ Fuel sitting at around R25/l for an oil producing state. At least the taxes aren't going to Nklanda. Entry level Golf here goes for 253,200NOK (438,036ZAR)

 

[Pitbull]

"The average new vehicle transaction price has risen steadily to R256 695 in September, while the average used car value has broken the R170 000 mark for the first time at R171 893. On average, buyers are replacing their vehicles after 35 months, 13 months before the vehicle's value has reached a break-even point with the outstanding loan amount."

The above quote is from WesBank in context of the 21% increase year on year for September new car sales.

So to have an avg of R250k + financed means that are an amount of buyers financing much more substantial amounts.

And replaced after only 35mnths on avg; highly inefficient hey?!

It's a snowball effect that is going to reach a point of no return at some point. Expect a massive economic recession in about 8 - 10 years from now if this continues. And the banks are allowing it...

 

[Vegeta]

Average price here is 1.75x that amount. :/ Fuel sitting at around R25/l for an oil producing state. At least the taxes aren't going to Nklanda. Entry level Golf here goes for 253,200NOK (438,036ZAR)

Whats the average salary in Norway?

 

[Ancalagon]

Not surprised. And not the second time I have read that vehicle loans were getting larger. People don't want to wait for that BMW, plain and simple. They want it now.

<- Feels that he bought his new car for R50k less than the average transaction value.

 

[tylerspears]

South Africans are refinancing their cars like Americans did with their homes before the crisis. It really is inefficient. Last year alone the same sort of analysis on http://www.usedcarsforsale.co.za/news/16/top-10-best-used-car-buys-in-2013-for-south-africans said that on average a buyer lost almost 34% on a new Toyota Corolla 12 months after it was bought. People are basically piling up on debt for assets that aren't worth it.

 

[Brawler]

Madness. So stoked I have a newish paid off car. No worries for looooong time. Hopefully I don't do something stupid and upgrade for forkol

 

[phiber]

It's a snowball effect that is going to reach a point of no return at some point. Expect a massive economic recession in about 8 - 10 years from now if this continues. And the banks are allowing it...

Can't see how the banks are the enablers here? If the banks comply with the legislation, and it is a profitable business, can't see why they would stop.

Legislation is well drafted to protect the consumer from debt he can't afford currently. The problem arises when the consumers financial situation changes, not something the legislation (and therefore not something the banks) take into consideration when pricing a 5 year product.

In the end a better informed consumer makes a better decision.

 

[Kosmik]

I earn a decent salary but couldn't stomach the thought and cost of a new car after a hijacking. Settled on a great second hander for less than half the price it would cost me new.

And I own it free and clear!