The trend continues. New vehicle sales in South Africa dropped further in October, falling by more than 30% despite the month being a seasonally strong month. Sales fell across the board by 30.1%, or 16 426 units, to 54 569 units compared with the same month last year. Sales for the first ten months of the year are 19% lower than the same time last year. The main reasons for the continual decline in car sales is that the global economic crisis is hitting many consumers hard, even in South Africa. There is not a lot of confidence in the market at this moment in time and most would rather spend their money on other things than buy a new car. The prices of new cars are also increasing which is forcing consumers to put plans of purchasing a new car on hold.

Thoughts have to go out to the car dealerships all over the country. Just the other day I was driving down in Wynberg in Cape Town and saw a string of about 6 dealerships in a row all with brand new cars in the showrooms. There was no sign of any activity in the showrooms. A clear sign that not much business is taking place. For every day the car is sitting on the shop floor it means that no money is coming into the dealership but overheads still need to be paid.

Some relief for consumers in South Africa finally; The retail price of all grades of petrol will decrease by 45 cents a litre on Wednesday November 5 the department of minerals and energy announced on Friday. Diesel prices will also decrease, with 0.05% sulphur falling by 24 cents and 0.005% by 21 cents. Wholesale paraffin decreases by 39 cents and illuminating paraffin by 52 cents.

Petrol in Gauteng now costs 896 cents a litre from 941 cents before and it is now 872 cents at the coast from 917 cents before. This news is welcome by many who needed some relief as the prices of everything else seems to be increasing. The decrease in the price of fuel could have been more as the world oil prices have dropped considerably over the last couple of weeks. But at the same time, the rand has been loosing value against the US dollar so the decrease could have been greater if the rand had remained strong. But nonetheless we will be seeing a welcome decrease on Wednesday.