1 minute read
4 Oct 2013
6:00 am

Car sales to keep trending

The Reserve Bank's decision to keep interest rates flat will boost the automotive industry which is sensitive to rate fluctuations and consumer pressures, Standard Bank says.

Image courtesy stock.xchnge

Sydney Soundy, Head of Vehicle and Asset Finance at Standard Bank, said yesterday 2013 sales growth probably would not reach the 6% mark initially predicted, but should continue at a “respectable level” for the rest of the year.

In the year so far, sales have grown 5.02% compared to this time last year.

He notes that while total manufacturers’ sales figures for September had shown a decrease of 3.27% this year, passenger vehicles had shown a 2.31% increase in sales to 39 792 new vehicles over those recorded in August 2013. This was still in line with sales achieved during September 2012 (39 489). Overall passenger sales for 2013 to date had grown 3.89% to 341 429 passenger vehicles compared to the 328 653 vehicles in 2012.

“People already considering buying vehicles will do so, in the anticipation that rates will remain steady for the medium-term,” Soundy says.

“Service and maintenance plans also contribute to containing motoring costs that are associated with lack of regular service and maintenance on vehicles. As monthly payment costs are relatively stable, the risk of unforeseen higher costs of repairs is reduced.”

The pre-owned car market can also be expected to benefit from the flow of fairly low-mileage, recent model cars on to the market, he says.