VPI Q3 2018 Results
Overall, the South African car market has had a challenging quarter with signs of recovery, which is seen by modest increases in new vehicle finance deals although total finance deals has declined. The slow price increases in new and used vehicle prices has assisted the recovery with consumers facing tough times with record fuel prices. Vehicle exports have hit a record high last month, which has added a positive swing to challenging times in the auto industry.
We expect the VPI trend to continue into the next quarter with modest increases in volume for new vehicles. The depreciation of the rand should ideally help the export market be more competitive and this is seen by record high export sales for September 2018.
"Overall, the South African car market has had a challenging quarter. In real terms, cars are cheaper than they’ve been in over a year. But this has not been enough to offset the impact on consumers of fuel price hikes of around 20% this year alone, ongoing rand weakness and the prospect of higher interest rates”
– Kriben Reddy, Head of Auto Information Solutions
Q3 2018 Vehicle Asset Finance Results
We have seen a shift in the vehicles financed under R200k. There is a ripple effect as entry-level vehicles are financed over 200k and the movement is transferred into the next bands. Vehicles financed over 300k is at record high.
VPI Q3 2018: Insights
Unpack the most important facts, findings and insights held in this quarter’s infographic. Download our latest version here.