::Barloworld ::Used vehicles sales
Used vehicle sales remain under pressure in South Africa. High personal debt levels and interest rates have depressed vehicle demand. Dealers are overstocked and used car values have plummeted as dealers try to rid themselves of cars. This has been exacerbated by vehicle repossessions, which have risen by more than 35% year on year in 2008.
New car prices have begun to rise, and this should mean that used car prices would be pulled up in the medium term; however, heavy discounting by dealers to move new units out of showrooms have repressed this price movement, so depressed used values are likely to be with us for a good while longer. Even if new car prices rise substantially, the still-continuing oversupply of used vehicles will still dilute prices.
This means that people in need of a used car find themselves in a buyer’s market. Moreover, due to the negative economic climate, many people are wary of splashing out on a new car and prefer to go “used”. This is good van used vehicle sales. However, the fly in the ointment remains the very high repossession rate that add used cars to the market at a rate of more than 7 000 per month, over and above supply through the normal channels. It is therefore very difficult to disperse the glut of used cars crowding the marketplace.
Huge auctions are held regularly by many of the large national pre-owned vehicle retailers and this has helped to move stock. It comes at a price, though: many cars end up being sold for far less than their normal market value. In fact, many cars are now advertised at more than 10% below Trade value, even though they are in excellent condition and have low recorded mileages.
It is ironic that economic circumstances usually dictate that, when a buyer’s market exists for something, it will be at a time when people do not have the money to snap up those bargains. It is why the buyer’s market came about in the first place… Used vehicle sales have fallen victim to the same scenario. For used vehicle sales near you please fill out the form below and we'll come back to you!
