VPI Q1 2021 Results
In the wake of lockdown restrictions and more temporary closures, it’s been another difficult quarter for the global automotive industry. Despite gains in the used vehicle market and growth in finance volumes over the past quarter in South Africa, uncertain times lie ahead. As consumers deal with rising unemployment, more lockdowns and the impacts of negative exchange and GDP growth, there’ll be more pressure on disposable income. The challenge for dealers is identifying future growth opportunities as total cost of ownership declines and the used vehicle market grows.
“Overall, the automotive industry has had another challenging quarter, with unemployment rate increases, negative exchange impact, negative annualised GDP growth rate and further pressure on disposable income resulting in low consumer confidence. This is a tough time for dealers, but we do expect consumers to start re-entering the new vehicle market once the industry adopts ‘right to repair’ laws later this year,”
– Kriben Reddy, Head of Auto Information Solutions
Q1 2021 Vehicle Asset Finance Results
There’s been an increase in financing new and used vehicles over R300k during the past quarter — the highest since we started tracking in 2011 — suggesting growth in consumer purchasing power and their ability to purchase more expensive vehicles. Over the coming months, we expect further shifts in demand from new to used vehicles as vehicle prices rise in real terms.
VPI Q1 2021: Insights
Unpack the most important facts, findings and insights held in this quarter’s infographic. Download our latest version here.
Stay on top of recent vehicle pricing trends with our latest press release. TransUnion’s Q1 2021 Vehicle Pricing Index Indicates an Advantageous Market for New Vehicle Purchasers in South Africa