SOUTH Africa’s Absa Vehicle and Asset Finance says a total of 52 306 new vehicles were sold in the domestic market in January alone, representing a 1,6 percent increase from the previous month.
However, this marked a 1,2 percent decrease from January 2014.
Head of Absa Vehicle and Asset Finance, Wessel Steffens, said vehicle exports increased gly by 20,7 percent in January on the same month last year, but were 23,5 percent down compared to December last year.
Passenger vehicles sales, accounting for 70,7 percent of total sales in January, were down by 3,6 percent on January last year, while growing by 2,9 percent.
Commercial vehicle sales showed growth of 6 percent in January from a year ago, while growing by 3,9 percent, the firm said.
Steffens said the overall daily sales rate for January was 2 378 units, down from 2 573 units sold per trading day in December.
Sales totalling 52 306 in January, 81,9 percent represented dealer sales, 11,3 percent represented sales to the vehicle rental industry, 4 percent to corporate fleets and 2,8 percent to government.
Most new vehicles are currently financed over a 72-month period with only the used vehicles marginally impacting the average financing term.
“The main driver behind this is affordability, but it has the downside of an ever-increasing average contract period which will continue to lengthen the replacement cycle,” Steffens said.
Source : CAJ News Agency