The VPI measures the relationship between the increase in pricing for new and used passenger vehicles, drawing from 15 top-volume manufacturers.
Our Vehicle Pricing Index (VPI) emphasises financed vehicle trends, integrating vehicle sales with borrowing patterns. While acknowledging the significance of cash purchases, this strategic move delivers crucial insights and provides a detailed analysis of market trends and future directions. This enhanced focus is tailored to help manufacturers, dealers, financiers, OEMs, insurers and consumers more confidently navigate market complexities.
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Rising inflation, higher fuel costs and currency fluctuations are squeezing consumer incomes, leading to a decline in vehicle sales. We saw a 8.5% decrease in financed vehicles and 9.1% drop in new passenger vehicle sales as consumers opt for cheaper, older, used vehicles and alternative financing. This trend was reflected in reduced vehicle financing among lower-income individuals. However, manufacturers are countering with discounts and incentives, helping consumers afford vehicles, potentially stabilising and growing the market despite economic headwinds.
In Q3 2022, the average loan value rose to R359,000 from R317,000, reflecting higher prices and a shift in consumer preferences toward more premium vehicle segments.