The SA Vehicle Industry Thread

With the rand's recent drop, they must be scurrying to get their price increases in before it recovers again...
 
kripstoe said:
Refusal? That would assume they're making a profit. You'd be surprised how much (little) profit is made on imported vehicles.
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Judging by the house of the owner of a BMW dealership I know, profits can't be too bad, considering it's a three story building filling a >1500m2 stand entirely, complete with indoor swimming pool, full HVAC and 400V incoming power line, because it pulls so much power.
 
Messugga said:
Judging by the house of the owner of a BMW dealership I know, profits can't be too bad, considering it's a three story building filling a >1500m2 stand entirely, complete with indoor swimming pool, full HVAC and 400V incoming power line, because it pulls so much power.
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Again, you assume the profits are from mainly selling new cars.
 
kripstoe said:
Again, you assume the profits are from mainly selling new cars.
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Why do you think I assume anything? He told me outright he doesn't really deal in second hand cars. He says he makes his real money from young government employees who get car subsidies. They walk into his showroom, ask for the most expensive sedan/SUV/whatever, pay, and that's that.
 
Messugga said:
Why do you think I assume anything? He told me outright he doesn't really deal in second hand cars. He says he makes his real money from young government employees who get car subsidies. They walk into his showroom, ask for the most expensive sedan/SUV/whatever, pay, and that's that.
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You assumed he was telling you the truth.

:p
 
kripstoe said:
Refusal? That would assume they're making a profit. You'd be surprised how much (little) profit is made on imported vehicles.
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Surprise me.
Tell us how much a dealer makes and how much the OEM makes on imported units.
 
In August I defleeted our Hyundai H100's and bought 4x Ranger 2.2 base single cab workhouses. Retail on these is R235k and I was only offered 6% fleet discount from the EL Ford dealership so they would've cost me about R221k + R5k onroad&licencing = R226k each.

I bought all 4 from a local used car outlet who sources brand new Ford's from an upcountry dealership who is willing to do deals. I paid R208k each including all onroad and licencing. My connection made a profit and his upcountry dealer connection did too.

I saved R18k x4 and the only Ford dealership in EL lost out on all 4 units. They are arrogant because they have the market monopoly here, but we bought smart.

New car industry deserves this famine. They have been printing profit money for years!
 
Further to my post above. Retail on an H100 is now over R260k and they are over 2litres per 100km thirstier on diesel (20% on a R30k monthly fuel bill). My fleet savings, nevermind the vat claims on the new Rangers, has me smiling all the way in these tough business trading times!
 
Makers of new cars face uphill battle

Vehicle manufacturers will either have to slow down production or cut margins even further to create more demand in the new vehicle market, according to vehicle risk intelligence company TransUnion Auto Information Solutions.

Targeted marketing strategies and incentives would also have to be implemented by dealerships to match supply to demand, said Derick de Vries, the chief executive of TransUnion Auto Information Solutions.

De Vries said the ongoing recession in the domestic new vehicle market, combined with an extremely difficult economic environment, pointed to an unfavourable short- to medium-term outlook.

Year to date there has been a 12.4 percent decline in new passenger vehicle sales, an 8.9 percent drop in light commercial vehicle sales and an overall reduction in new vehicle sales of 11.3 percent.

Projected growth

The National Association of Automobile Manufacturers of South Africa said in May that new vehicle industry production should continue to benefit from the 12 percent projected growth in export sales to 375 000 units from 333 802 last year.

However, vehicle exports increased by only 1.3 percent to 263 930 units in the first nine months of this year from the 260 569 units exported in the same period last year.

This is largely because of a 54 percent decline in vehicle exports into Africa because of the current poor economic environment on the continent.

TransUnion’s latest vehicle price index revealed that the rate of increase of both new and used vehicle prices accelerated further in the third quarter of this year.

New vehicle prices increased by 9.9 percent year on year in the third quarter from 8.4 percent in the second quarter.

Used vehicle prices rose by 2.8 percent from 2.7 percent in the same period.

The further increase in new vehicle prices was attributed by TransUnion to a delayed reaction to rand weakness and ongoing poor economic conditions.

TransUnion data also showed there had been significantly fewer deals financed in the third quarter of this year than in the corresponding quarter last year.

De Vries said TransUnion’s financial registrations data indicated a drop of about 48 percent in new vehicle finance deals and 12percent on used vehicle finance deals in the third quarter compared with the corresponding quarter last year.

He said the percentage of new and used vehicles financed below the average price of R200 000 had increased in the third quarter to 50 percent from 38 percent in the same quarter last year.

De Vries said luxury vehicles had been substituted for more affordable vehicles that still provided most of the accessories in top of the range vehicles.

He said household cash flow measures showed that household finances were the weakest they have been since 2010 and that consumers did not have any room to take on any additional debt.

“Low levels of both consumer and business confidence combined with new vehicle pricing remaining above the consumer price index will continue to add severe pressure to the new vehicle market.

“This has, however, seen the demand for used vehicles continue to increase considering the affordability challenges in the new vehicle market,” he said.

De Vries said consumers were tending to look for cheaper cars or hold on to their existing vehicles for longer than normal.

One new vehicle was financed in the third quarter for every 2.93 used vehicles financed compared with one new vehicle financed for every 1.71 used vehicles that were financed in the corresponding quarter last year.

De Vries said overall the current economic conditions had slightly improved the used car market, with year-to-date volumes increasing, but the new car market had suffered.

He predicted the market would show some signs of recovery within the next 12 to 18 months.

http://www.iol.co.za/business/news/makers-of-new-cars-face-uphill-battle-2080421
 
Maintenance plan labour rate is R750 p/h

This is to change oil. mostly done by an appy.

Ridiculous profit.

And the full value of the maintenance plan is included in the sales price.

Which you finance.

Sometimes you sell the car with a working plan.
 
silver6933 said:
Maintenance plan labour rate is R750 p/h

This is to change oil. mostly done by an appy.

Ridiculous profit.

And the full value of the maintenance plan is included in the sales price.

Which you finance.

Sometimes you sell the car with a working plan.
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Yip!

A little known fact is that any car can be bought without the included service or maintenance plan - hence a big discount. No dealership talks about that though.
 
FlashSA said:
Yip!

A little known fact is that any car can be bought without the included service or maintenance plan - hence a big discount. No dealership talks about that though.
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VW, GM and I think Ford don't come with service plans anymore :-(
 
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