The SA Vehicle Industry Thread

The Voice said:
I remember a scenario years back where someone found that it was cheaper to import a Toyota (including taxes, shipping, etc) than to buy it locally. The Toyota was manufactured in South Africa.
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Was a Hilux if memory serves, built in Durban. Thing was exported to Dubai or something, loaded straight off the ship onto another, shipped back to SA and clocked in cheaper. That's how the story went anyway, no idea whether it was actually true.
 
BUT - the SA buyer has himself to blame as well, as there should have been some sort of backlash donkeys years ago - far too many of our over priced cars are bought on Company/Government schemes, and in that case, who gives a damn about cost?!
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As many said before, this. As long as people buy, the sellers will increase the price. I don't see any breaking point soon, I predict bigger balloon payments, which then can be financed for even longer term when you have to pay it. Also, won't be surprised if the sellers will start giving a lending time period of 7 to 8 years. :/
 
MrBuddha said:
As many said before, this. As long as people buy, the sellers will increase the price. I don't see any breaking point soon, I predict bigger balloon payments, which then can be financed for even longer term when you have to pay it. Also, won't be surprised if the sellers will start giving a lending time period of 7 to 8 years. :/
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What people are doing here now quite often is vehicle leasing. I'm not completely sure how it works but what I understand of it is you find a new car, get a leasing company to buy it under their name, you then lease it from them and at the end of the lease period you have first option on buying the car off them...which is then financed through the bank as a 2nd hand vehicle loan. All of this is done to circumvent some serious taxes through a legal loophole, not sure when they'll crack down on it.
 
MrBuddha said:
As many said before, this. As long as people buy, the sellers will increase the price. I don't see any breaking point soon, I predict bigger balloon payments, which then can be financed for even longer term when you have to pay it. Also, won't be surprised if the sellers will start giving a lending time period of 7 to 8 years. :/
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84 month terms already available.
 
The latest finance trend is "guaranteed future value". It is a bit better than a balloon payment, because you are effectively renting the car for 2,3, or 4 years and at the end of the term you just give the car back as long as it is in reasonable condition. It is better than a balloon payment in a sense that at the end of the contract, you are not liable for the full balloon payment and sale/trade-in process. It shifts the debt from the bank to the dealer. The bank couldn't care less if you can't sell your car for enough in order to pay the balloon. Now you can just hand over the car to the dealer and walk away.

I suspect this will be the growing trend on how we will buy expensive new cars. The sick thing is that now you are only paying off the depreciation of a new car for 2 to 3 years which is the most expensive part of the depreciation over the life of the car. Then the dealer gets fresh stock of 2 or 3 year old cars to sell second hand at a big markup. Effectively, they make double profit on every car sold, so they can afford to offer discounted new prices.
 
The only thing dismal about SA car sales is what gets bought. It is proof that your average south Africa has vark-all taste, class or sense of individuality. Their lack of personality gets reflected perfectly in the Vivos and Etios - which is why they are top sellers.

Well done sheeple.
 
Drifter said:
Kia are busy pricing themselves out of the market.
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Agreed. Their excuse is the Rand which does makes sense considering when I bought my Cerato in 2010 it was R7.65 to the dollar and today it is 13.67. That is nearly double and excludes normal inflation!

Still though, now their prices are the same or more as everything else. How do other companies like Mazda keep their prices decent?
 
Rouxenator said:
The only thing dismal about SA car sales is what gets bought. It is proof that your average south Africa has vark-all taste, class or sense of individuality. Their lack of personality gets reflected perfectly in the Vivos and Etios - which is why they are top sellers.

Well done sheeple.
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So you going to give them more $$$ to buy something else? What about Figos?
 
Rouxenator said:
The only thing dismal about SA car sales is what gets bought. It is proof that your average south Africa has vark-all taste, class or sense of individuality. Their lack of personality gets reflected perfectly in the Vivos and Etios - which is why they are top sellers.

Well done sheeple.
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Strong hipster tendencies coming thru but anyway...

Surely you would have thought that for many buyers a car just that car ie. A means from point A to point B.

When you have mindset then build quality; performance; steering feel & all that jazz tends to go out the window.

Vivo Pros: "Premium" VW badge; excellent resale value; good insurance rates; well built in this segment; easy to source parts...I could go on.

Etios Pros: "Respected" Toyota badge; interior space is good relative to car size; 1.5L motor is "big" in this segment; good resale.

Like I say buy a car/phone/oven that suits your own individual needs.
 
akescpt said:
Just got this email

View attachment 290634
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So - to make people buy inflated price cars.

a R226k car is being sold for a mere 22.6k deposit, plus R2399 a month for 3 years (R86 364.00).

Therefore you end up out of pocket R108k to give the car back after three years.

i.e. it is costing you R108k to rent a car. If you damage it, drive too much or something else goes wrong - suddenly you are even more out of pocket.

These manufacturers need to price cars more reasonably.
 
FiestaST said:
Vivo Pros: "Premium" VW badge; excellent resale value; good insurance rates; well built in this segment; easy to source parts...I could go on.
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Nothing premium about it, especially not the Vivo. Bad insurance rates because it is a hijack risk, full of rattles so not so well built. Parts, yes there is that. Probably need that cause they break down a lot.

FiestaST said:
Etios Pros: "Respected" Toyota badge; interior space is good relative to car size; 1.5L motor is "big" in this segment; good resale.
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Death trap.

Rather get the up!
 
requiem said:
So - to make people buy inflated price cars.

a R226k car is being sold for a mere 22.6k deposit, plus R2399 a month for 3 years (R86 364.00).

Therefore you end up out of pocket R108k to give the car back after three years.

i.e. it is costing you R108k to rent a car. If you damage it, drive too much or something else goes wrong - suddenly you are even more out of pocket.

These manufacturers need to price cars more reasonably.
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Except when you rent a car you can do 200km a day in it, at 20 000km a year max, you're limited to 55km a day.

You might as well rather lease it than buy with a guaranteed future value - at least you have more flexibility that way.
 
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