• Courage to do right

    A number of factors will impede Zuma’s opportunity to have a ‘Lula moment’, says Prof Dirk Kotze.

  • #Budget2016

    Possible steps that can be taken in the National Budget to avert a junk status.

  • No ordinary SONA

    A weak president presiding over a racially polarised nation faces a serious task.

All data is delayed
See More

New car sales to slow down: TransUnion

Mar 18 2011 14:13
I-Net Bridge
Johannesburg - Vehicle risk intelligence company TransUnion Auto Information Solutions (TransUnion Auto) said on Friday it expected slower volume growth of about 5% to 10% this year.

TransUnion Auto also said used car margins were likely to continue to come under pressure throughout the year.

Despite a fantastic start to 2011 for new vehicle sales (year to end-February passenger vehicle sales up 26%), overall growth in the new vehicle market is also expected to slow to around 12% to 15% through 2011, TransUnion Auto said.

"The 25% growth rate of 2010 is in all likelihood unsustainable, though I'd happily be proved wrong at the end of the year," said CEO Mike von Höne.

Speaking at the biannual TransUnion Auto Trends Forum in Sandton, Von Höne said the outlook for the vehicle market in 2011 was generally positive.

"Market sentiment is recovering. In line with recovering sales of both new and used vehicles, more vehicles are being financed with financial agreements for both segments having increased steadily since May 2009," he said.

In addition, the upward trend in new financial agreements continued in January, increasing by 5.7% year-on-year. Used financial agreements grew by 6.8% in the same period.

"The good news for consumers is that finance is becoming more available with approval rates for new vehicle contracts increasing steadily to around 35% at present. However, banks are requesting larger deposits from 'marginal' customers," Von Höne said.

Overall statistics from TransUnion Credit Bureau reveal that the consumer debt to income ratio is improving and that overall arrears for "big ticket items" (mortgage bonds and asset finance contracts) was improving, TransUnion Auto said.

Von Höne said it was not all that long ago that vehicle financing contracts had an upper repayment period of 60 months. Today, less than one third of contracts have a repayment period of 60 months or less.

"The fact is that there is an increasing trend for the contract terms for new vehicle financing agreements to be greater than 72 months indicates that contract periods are being extended to make the repayments more affordable.

"A substantial 22% of all vehicle financing contracts fall within this category compared to 45% for between 60 and 72 months," Von Höne said.
transunion  |  cars  |  vehicles


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Will Jacob Zuma's State of the Nation speech help SA avoid "junk" downgrade?

Previous results · Suggest a vote