Times are getting harder in South Africa and data released yesterday proves this. New vehicle sales in South Africa fell by 2.85% year on year in April to 45 536 units. It is really no surprise that people are not buying new cars due to the rising interest rates and higher prices of food and energy. With the fuel pricing having risen today, very few people would be tempted to go out and buy a new car which would most likely consume more fuel. But there are still consumers out there who are always on the look out for new cars and seek to constantly ‘upgrade’ their car in line with new models.

But such consumers are getting fewer and fewer as even the ‘well off’ consumer is starting to feel the pinch. It may take a long time for the new car sales industry to start picking up again. A lot hinges on how interest rates shape out as most people require financing to purchase new vehicles with very few being able to afford paying cash for a new vehicle. If interest rates go up again as many predict they will, the new car sales figures will continue to drop and thus adding more pressure to the new car sales industry in South Africa. The figures released yesterday show that new car sales in April were 24 094 units this year whilst last year in April, new car sales were 25 913 units. This is a decline of 7%.

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