Things are looking up for 2021 sales
In a statement released by the National Automobile Dealers’ Association (NADA), chairperson Mark Dommisse predicted an improved sales environment for 2021.
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“For a very uncomfortable period, new vehicle sales were brought to a virtual standstill. Between April and October there were six amalgamations, 19 dealership sales and 38 closures as a result of the economic slowdown,” he said.
Dealers had to go beyond the norm to stay afloat. Lower interest rates stimulated sales and the reopening of government and fleet acquisitions also contributed to the stabilisation of the industry.
To predict what the market will do, is risky. “This is due to local and global uncertainties,” said Dommisse. “We need to be cautious of a third wave, which is almost inevitable in the winter months.”
Dealer income is split between sales and services like part sales and the servicing and maintenance of vehicles.
“Since September, NADA’s member dealers have returned to near normality in workshops as a result of more regular commuting patterns. We also saw pre-holiday services close to normal numbers ahead of the December holidays.
“Although demand is outstripping supply, the preowned market is healthy,” said NADA.