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Johannesburg - Car dealers have started the year optimistic about sales for the first quarter, the WesBank Vehicle sales Confidence Indicator showed on Tuesday.
It said that confidence in sales activity among dealers were at their highest since the indicator was started in 2007.
Confidence grew to 6.5 out of 10 in January 2011 from 5.7 in October 2010; 59% of dealers surveyed reported that sales activity was either "active" or "very active", compared to only 30% in the fourth quarter of 2010.
The start of 2011 also saw a prominent movement in activity levels, with 29.5% more dealers reporting that they were currently active or very active compared to the previous quarter.
WesBank executive head of sales and marketing Chris de Kock said confidence levels reflect an increased market performance.
In January 2011, 45 135 new vehicles were sold compared to 38 075 in January 2010.
The latest results also reflect a significant increase in confidence and activity in the new vehicle market. According to the data, 57.7% of dealers said the new vehicle market was more active than the used vehicle market, compared to 14.6% in October 2011.
Data from the WesBank confirms this shift.
De Kock said the combination of a strong rand, a 30-year low interest rate, rising used vehicle prices and increased new vehicle stock has led to new vehicles becoming more attractive.
He said the positive trend is likely to continue throughout 2011, with moderate double-digit growth in vehicle sales for the remainder of the year.
"WesBank's approval rate has increased by 11% since October last year, which can be attributed to the better quality applications we have received," he said.
It had also seen a decline in repossessions since the last quarter of 2009.
It said that confidence in sales activity among dealers were at their highest since the indicator was started in 2007.
Confidence grew to 6.5 out of 10 in January 2011 from 5.7 in October 2010; 59% of dealers surveyed reported that sales activity was either "active" or "very active", compared to only 30% in the fourth quarter of 2010.
The start of 2011 also saw a prominent movement in activity levels, with 29.5% more dealers reporting that they were currently active or very active compared to the previous quarter.
WesBank executive head of sales and marketing Chris de Kock said confidence levels reflect an increased market performance.
In January 2011, 45 135 new vehicles were sold compared to 38 075 in January 2010.
The latest results also reflect a significant increase in confidence and activity in the new vehicle market. According to the data, 57.7% of dealers said the new vehicle market was more active than the used vehicle market, compared to 14.6% in October 2011.
Data from the WesBank confirms this shift.
De Kock said the combination of a strong rand, a 30-year low interest rate, rising used vehicle prices and increased new vehicle stock has led to new vehicles becoming more attractive.
He said the positive trend is likely to continue throughout 2011, with moderate double-digit growth in vehicle sales for the remainder of the year.
"WesBank's approval rate has increased by 11% since October last year, which can be attributed to the better quality applications we have received," he said.
It had also seen a decline in repossessions since the last quarter of 2009.
