New car sales in freefall

[Bona Botse]

http://www.wheels24.co.za/Content/N...88b06c19974e3ccc27//New_car_sales_in_freefall

The year-on-year decline in new vehicle sales for April was down 43.7% (including sales reported by the AMH Group).

good. SA car dealers need to suffer for all the years of price gouging that we, the public, had to endure.

so, would now be a good time to go negotiate 50% discounts or should i let them suffer for a few more months? :evil:

 

[undesign]

and they are still increasing prices

 

[Devill]

Sadly the market is on the recover and thus they know if they can survive for 6 more months they will be in the "driving seat" a gain

Kind of hope the sales keep dropping for another 12 months or so....

 

[Fazda]

Just been on the other thread about this...these guys feel zip for the consumers, and it really is time that we hit back, but this is South Africa, and as consumers we are a bunch of spineless idiots!

They will sit back, wait for us to start buying again and sell old stock at new stock prices. BASTARDS!!

 

[LandyMan]

http://www.wheels24.co.za/Content/N...88b06c19974e3ccc27//New_car_sales_in_freefall

good. SA car dealers need to suffer for all the years of price gouging that we, the public, had to endure.

so, would now be a good time to go negotiate 50% discounts or should i let them suffer for a few more months? :evil:

The problem is that it is not the dealers that set prices, but the manufacturers. Also remember, all the low interest deals on the table now, is mostly through the manufacturers' own finance house ... so the dealers don't feel the punishment as much, as the financing houses get hit by the low interest rates they have to offer, and the dealers still sell the cars.

Have a look around how many new cars you still see on the roads, even with those sales figures

 

[Fazda]

The problem is that it is not the dealers that set prices, but the manufacturers. Also remember, all the low interest deals on the table now, is mostly through the manufacturers' own finance house ... so the dealers don't feel the punishment as much, as the financing houses get hit by the low interest rates they have to offer, and the dealers still sell the cars.

Have a look around how many new cars you still see on the roads, even with those sales figures

Although the manufacturers set the price, it is up to the Dealer Principal whether old stock goes out at old or new price. There is about 9 months of old stock out there at the moment, and these bastards are salivating at the thought of better profit margins.

I worked in the motor industry far too long to ever again fall for a salesman or sales manager's crocodile tears when it comes to price and discount.

Just an example of VW Caravelles back in the early 90's. They had a maximum discount set by the factory of 10% and on a 10% deal we still cleared R17 000 before adding any extras....looks great in the books after a price increase, as that 17k suddenly jumps up another 7 or 10%.

 

[Gaz{M}]

Volkswagen Polo 1 024
Toyota Yaris T3 779
Mercedes-Benz C-Class 736
FORD Fiesta 718
Volkswagen CitiGolf 678 <--- 678 idiots who want to die
BMW 3 Series 653
Toyota Corolla Verso 648
Volkswagen Polo Classic 468
VOLKSWAGEN GOLF 6 435 <--- 435 idiots who can't see bad value

 

[Fazda]

Volkswagen Polo 1 024
Toyota Yaris T3 779
Mercedes-Benz C-Class 736
FORD Fiesta 718
Volkswagen CitiGolf 678 <--- 678 idiots who want to die
BMW 3 Series 653
Toyota Corolla Verso 648
Volkswagen Polo Classic 468
VOLKSWAGEN GOLF 6 435 <--- 435 idiots who can't see bad value

WRT the 678 idiots who want to die, could it not be a case of just about the only thing they can afford? I'd rather have a Citi, old as it is than soime piece of Chinese rubbish for the same price...

What amazes me is that VW can hike Polo prices to their present ridiculous level, and STILL outsell everybody, just goes to show how numb we are towards crazy prices

 

[capetownguy]

what a surprise!

 

[koeks]

I'm just wondering if these prices will affect the used car market in a negative way?

 

[Fazda]

I'm just wondering if these prices will affect the used car market in a negative way?

There is a knock on effect, but as long as people are stupid enough to pay telephone number prices for new cars, you should get equally crazy prices for second hand.

 

[sox63]

They will stockpile the cars until things pick up. I think they have enough cash reserves to last till then.

God forbid they actually think about discounting the cars!

 

[The_Unbeliever]

They will stockpile the cars until things pick up. I think they have enough cash reserves to last till then.

what make you think that?

several dealerships had to close their doors due to their dead (or poor) cash-flow.

I think the situation will deteriorate and goes from bad to worse before it get better.

But we'll have to wait and see.

 

[sox63]

what make you think that?

several dealerships had to close their doors due to their dead (or poor) cash-flow.

I think the situation will deteriorate and goes from bad to worse before it get better.

But we'll have to wait and see.

Yes, the dealers are going to get hit hard, however the car companies themselves that dictate the pricing do not seem to be bothered at the moment. With the exception of Chrysler locally.

 

[The_Unbeliever]

Yes, the dealers are going to get hit hard, however the car companies themselves that dictate the pricing do not seem to be bothered at the moment. With the exception of Chrysler locally.

One question.

When a dealership buys from the factory, does the dealer arrange for financing with the bank, or does the factory give the dealer(s) a few cars to sell off, and then recouping the money/profit?

 

[sox63]

One question.

When a dealership buys from the factory, does the dealer arrange for financing with the bank, or does the factory give the dealer(s) a few cars to sell off, and then recouping the money/profit?

I think it is strictly cash. We thought about opening a dealership a while back, but the killer was the money for stock. Its just a normal trading situation, buy stock and sell it for more. Bank financing comes in for you and me.

 

[Fazda]

One question.

When a dealership buys from the factory, does the dealer arrange for financing with the bank, or does the factory give the dealer(s) a few cars to sell off, and then recouping the money/profit?

Depending on the size of the Dealership, the factory "charges" the dealer with the cost price of the stock.

When I worked for VW this tended to be a "paper" purchase, as the "money" floats between Dealer and factory until the car is sold. If we bought stock from another dealer (certain colour or model) we then paid cash. I am pretty sure that the smaller dealerships work on a cash only basis, whilst the bigger ones work on credit.

 

[Bona Botse]

32.9% vehicle sales decline for May

Naamsa reported that Sales for the first five months of 2009 reflect a 35,8% decline over the same period last year. New vehicle sales in May accounted for a 32,9% drop over May 2008.

http://www.wheels24.co.za/Content/NewModels/TopSellingCars/

burn baby burn!

so apparently all the public holidays (which occur every year, by the way) last month were to blame for the 40%+ drop, i wonder what they'll blame this time? the cold weather?

 

[Fazda]

Was watching an ad on Morning live today where Auto Pedigree was telling you to buy from them now that new car prices had gone up again.

This bloody industry deserves to Crash and Burn!

 

[lucifir]

haha ... the cookie ... she is crumbling ... quick raise prices ... maybe we can sell more crumbs
they deserve this as they brought it on themselves by inflating prices by such huge margins!!