::Barloworld ::The New Cars Dealer ; Under threat in tough times as Sales Drop
Any new cars dealer will tell you that car sales are going one way: down. The global credit crunch, volatile fuel prices, high interest rates and a lack of consumer confidence have dragged down local new car sales in 2008 by over 20% year-on-year, compared to 2007. A further drop of 15% is expected in 2009.
The recent weakening of the Rand has sent new car prices on an upward spike and banks have been cautious in extending credit to buyers. These factors have had a significant impact on new car sales figures, which are now at their lowest point since 2004, which has made the life of a new cars dealer somewhat difficult.
Therefore, the new cars dealer will always remember the NCA as the first hit of the salvo that changed the local motoring landscape forever. Already, some new car dealers have had to close their doors during 2008 and the trend will continue for the time being, as dealers’ viability and profitability come under pressure in the wake of slow sales. Niche players are having a hard time as consumers abandon them in favour of the established players and top sellers, as people are wont to do during tough times.
Some manufacturers are staying put and hoping the recession ends before their cash runs out and others are valiantly fighting back with aggressive marketing and new car launches to pique the interest of war-wary consumers. The new cars dealer is also discounting heavily to move stock, and this is putting pressure on used car sales too.
All of this means that there are more excellent deals out there than possibly ever before. Yet, few people are in a position to take advantage of them as they put off buying that new car in the midst of high inflation, high personal debt and job insecurity. However, for those with the wherewithal, the new cars dealer will make you an offer you cannot refuse…
