New car sales in freefall

[Kokop]

Because SA in general holds esteem higher than cash flow... "If there is a new model, I must have it at all costs, because if I don't, my neighbor will, and I lose face"

Same happened when Telkom started with the 4Mbps roll-out. On this board, I asked people to not take the new package. If all had done so, Telkom would have been forced to drop the price... but what happened? Almost all the people shouting so hard that Telkom is shafting us, went out and upgraded!

as long as this behavior stays the same, we will be shafted...

Perhaps its the cash flow of the Gov, previous and present?

Protectionism does not equate to patriotism in my mind. (i.e. we get shafted)

I would like to see the stats on business v private sales as a % of the market. (great for a company to right off depreciation on the books on a new car v us individuals)

Bloody crazy after speak to off shore friends if you ask me.

Just closed a business idea for me...

 

[Fazda]

It will be ignored by COSATU as their members don't tend to buy new cars, and they are more worried about protecting jobs than anything else.

In Durban they have garages that specialise in imported models which are then sold on to African countries. I had to laugh when they had a British Golf IV, built in SA, and exported to the UK, then sold back here, and we were not allowed to buy it, as it was now classified as a full import!

If a car can do the round trip between here and the UK, and still be sold at a profit...go figure!

 

[Kokop]

It will be ignored by COSATU as their members don't tend to buy new cars, and they are more worried about protecting jobs than anything else.

In Durban they have garages that specialise in imported models which are then sold on to African countries. I had to laugh when they had a British Golf IV, built in SA, and exported to the UK, then sold back here, and we were not allowed to buy it, as it was now classified as a full import!

If a car can do the round trip between here and the UK, and still be sold at a profit...go figure!

Agreed totally re Cosatu & news,

Agreed even more on locally built full import.

I know the import trade, tried to buy a 80's series land cruisers a few years back (heavily inflated local prices) found the Durban importers & shippers in Japan, scary the price difference.

Still think there should be some form of "commission" set up locally as to why we sell locally assembled cars cheaper to UK/OZ than we can buy them.

Now I hear that the dealers are under "restrictive" policies from the "local" factories re discounts.

Sorry BS

Just angry at this policy

 

[Fazda]

I agree that it is BS, but that's the way the system works and the public have been gobbling it up as well as accepting ridiculous prices for years now.

Somebody made a point about everyone having t have the newest and most flash cars of every model, and they are correct. The SA consumer, in general, is a snob through and through. That's also why stripped down basic models just don't sell. When VWSA tried introducing the Jetta III CLX without PS and AC or radio, it was a marketing disaster with 90% of those low spec Jettas finally being sold to Avis and Hertz etc. They're easy to pick up as they all have after market radios and aerials, whereas the one with the factory radio had the aerial in the window glass.

 

[kingmonty]

I was sales manager at Lindsay Sakers for a couple of years, and trust me when I say that the prices are fixed by the factory.

They even have ghost buyers paid by the factory, who try and squeeze more than accepted discounts from the sales people. You first get a rap over the knuckles and a warning. If it carries on you lose the dealership end of story.

There are ways of getting around the 10% max on some models, by giving the maximum discount then adding "extras" at no charge.

There are all sorts of creative accounting that go into car sales...another one, to get past some car schemes, a car is sold at a base model price, even though it isn't, then the customer is charged for extras which are on the car anyway.

Lovely business

So basically those massive fines they got a few years ago for this exact activity was just paid and then back to business as usual? I would hazard a guess that they don't really care anyway? I guess if a government official makes too much noise then they will just threaten to close those uitenhage factories?

 

[Fazda]

So basically those massive fines they got a few years ago for this exact activity was just paid and then back to business as usual? I would hazard a guess that they don't really care anyway? I guess if a government official makes too much noise then they will just threaten to close those uitenhage factories?

You must realise that their buying public is a captive market, willing to pay crazy prices. They feel absolutely nothing walking away with massive profits every year, and they raise their prices at will. I've said it before, our prices went up 6 to 7% every 3 months and they are never questioned.

The guys working out the car schemes just adjust the figures accordingly every year, and the gullible fools just keep buying.

The factories also have guaranteed purchases from the rental companies each year, so getting rid of stock is no problem at all.

 

[kingmonty]

So the answer is to buy cheaper cars and not opt for the top of the range German luxury sedans? I can (and do!) live with that.

 

[Fazda]

So the answer is to buy cheaper cars and not opt for the top of the range German luxury sedans? I can (and do!) live with that.

Yes, tell that one to your average yuppie!!

Whether it's the wealthy new kid on the block or the new black elite, it's all the bells and whistles or nothing at all!!

I listened to the Gauteng Premier on Morninglive today, discussing the disappearing million rand Mercedes, and she actually said something that blew me away.

"I don't know why the MEC was in such a hurry to buy a new car, after all I still have my old (sic) X5"!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

That, in a nutshell is that, ladies and gentlemen!

 

[Jakeson]

Sadly it does not translate to car prices freefall.