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A good time to trade in?

Car dealers are desperate for good quality used vehicles, is it time for you to trade in?

15 March 2010 · Staff Writer

Despite new vehicles sales being on the rise in South Africa, the local market is still experiencing a severe shortage of good quality used vehicles, resulting in a price hike in this sector.

Not only are the prices of the vehicles on sale higher, but the trade-in values have also increased and fewer used vehicles are leaving the showroom floor.

At a forum held in Johannesburg on Friday, chief executive of TransUnion South Africa, Mike von Höne, said the strengthening of used-vehicle prices is the most important information coming out of the company's recent forum which supplies information on the motor industry.

"If only there was a greater supply of good quality-stock, they would be able to sell more," van Höne added.

In November 2009 there were 2.4 used vehicles being sold for each new one but this decreased to 1.83 in February with new vehicle sales being on the rise.
Most motor dealers can credit surviving the recession to the selling of used vehicles but, with fewer people able to afford buying a new vehicle and others worried about the impact buying a car might have on their budget, the flow of used cars into the market is lessening.

Two other factors are also playing a key role: banks are no longer repossessing vehicles as often as they used to while fleet-rental companies are bulking up their supply in anticipation of the influx of tourists during the 2010 Soccer World Cup.

The motor industry has been under pressure for quite some time now and while most people are forced to opt for vehicle finance, now might be the perfect time to trade in your old car.

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