Fin24

Low interest rates jumpstart car sales

2012-11-02 11:12

Johannesburg - South Africa’s total new vehicle sales increased by 10.5% year-on-year in October to 57 845 units, partly boosted by record low interest rates, the National Association of Automobile Manufacturers (Naamsa) said on Friday.

Exports of locally produced vehicles however fell by 3.3% year-on-year in October, Naamsa said in a statement.   

Disruption at various manufacturing plants linked to a transport sector strike had affected output and exports during the month.

While relatively lower lending rates were helping boost domestic sales, rising inflationary pressures and a weaker rand could push vehicle prices unsustainably higher, weighing on demand for the remainder of the year and in 2013.

 

Comments
  • thomas.g.loeser - 2012-11-02 11:32

    Mostly on fancy / unpayable HP packages ? Doesn't mean the economy is going well. The crunch is nearing??

      J.Stephen.Whiteley - 2012-11-02 12:04

      Agree completely. If rates are lowered again, we head for a liquidity crisis as in Britain and Spain. They should be raised.

  • Bra Tebzaah Sibilanga - 2012-11-02 12:21

    I never buy brand new cars,no.If its below R100k then I buy it cash.Dont need the low interest rates to own a car.

      philani.goba - 2012-11-02 15:57

      @Watchman what silly comment..I'm 25 I dont have kids I stay at my mom's house..he said UNDER 100k I bought mine cash for 65k saving half of my 8Grand salary for 2 years!...so you have other priorities so you wont afford..your problem is you had 4 kids when you should have had 2.

  • adrian.snyman.16 - 2012-11-02 13:18

    Personally, I don't think it's the lowered interest rate that is doing this. There are more and more of these "Only 1999-00/month" deals with that VERY fine print "15% deposit/60 months/45% balloon payment". Those are TERRIBLE deals, because the owner end up having to re-finance at the end of the term to cover the shortfall. The debt at the end of the day works out costing the individual so much more :(

  • dominic.milazi - 2012-11-02 15:32

    They don't seem to make cars like they used to. I still drive the Tazz I had in college and it continues going 13 years later. I drive past people stuck along the N1 in much later models all the time. Nowadays, a new car will only give you about 5-7 years max.

      mc.segal.5 - 2012-11-02 16:18

      Toyota the least towed vehicle ....

      Mandy Casey - 2012-11-03 10:47

      You must have meant Honda

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