Vehicle sales numbers surprise in September despite challenging economic environment

“Despite the surprisingly better than expected sales results for September, the fundamentals have not changed, the economic outlook is still not looking positive, the rand continues to weaken which will undoubtedly continue to drive above-inflation new car increases. As expected, the export market continues to outshine the rest of the industry and this trend will continue for the remainder of 2014.”

 

General Comments on September 2014 NAAMSA sales:

• The month of September 2014 experienced a 9.26% increase in sales compared to August 2014.


• Month on Month only Passenger (13.10%) and Light Commercial Vehicles (1.70%) experienced positive growth.


• Year on Year monthly comparison shows an increase of 11.51% in September 2014 compared to September 2013.


• Year to date (January – September 2014) comparisons shows that vehicle sales are down by -2.5% in the first 9 months of the year when compared to last year.


• Month on month Exports decreased in September (-6.7%) with Passenger vehicles increasing by 13.8% and Light Commercial Vehicles growing by 42.1%.


• Year on year monthly comparison shows an improvement in exports of 257.9% in September 2014 compared to September 2013.


• AMH & AAD saw an increase in September 2014, 6.3% month on month.

General Comments on September 2014 Standard Bank VAF Personal Applications:

• In September 2014 applications for new vehicles experienced negative month on month growth of -1.1% while applications for used vehicles had negative month on month growth of -2.9%.


• Year on year monthly comparison on applications shows a decline in both new (-34.0%) and used (-1.4%) vehicle market applications in September 2014 compared to September 2013.


• Applications in both Passenger Vehicles (-2.5%) and Light Commercial Vehicles (-2.3%) in the Personal market had negative month on month growth in September 2014.


•  Year on year monthly comparison shows positive growth for both Passenger Vehicles (0.8%) while Light Commercial Vehicles had negative growth (-3.1%) in September 2014.


• The proportion of applications with RV’s increased to 19.7% in September 2014 from 19.2% in August 2014. However, month on month applications with RV’s declined by 2.0%.


• The proportion of applications with deposits decreased to 33.3% in September 2014 from 39.2% in August 2014. Applications with deposits declined by -17.0% month on month.


• The Average Contract Term on applications increased from 67.0 months to 68.5 months (September 2013 to September 2014), year on year growth of 2.4%.


• The average application size increased from R189 755 in September 2013 to R209 865 in September 2014, a 10.6% year on year increase.

General Comments on September 2014 Standard Bank VAF Personal New Business:

• In September 2014 new business experienced negative month on month growth in new vehicle markets of -12.5% while the used vehicle markets had positive month on month growth of 9.1%.


• New business year on year comparisons shows a decline in both new (-34.3%) and used (-19.6%) vehicle markets in September 2014 compared to September 2013.


• Passenger vehicles had negative month on month growth of -11.5% while Light Commercial vehicles had negative growth of -4.2%.


•  Year on year monthly comparison shows a decline for both Passenger Vehicles (-15.5%) and Light Commercial Vehicles (-18.2%) in September 2014 compared to September 2013.


• The proportion of new business deals with deposits decreased to 43.3% in September 2014 from 45.5% in August 2014 (0.7% month on month decline and -44.1% year on year increase).


• The proportion of new business deals with RV’s stayed the same at 25.6% between August and September 2014. New business deals with RV’s declined month on month by -2.7% and -28.7% year on year.


• The Average Contract Term increased from 64.5 months in September 2013 to 66.2 months in September 2014 (2.7% year on year growth).


• The average deal size increased from R260 966 in September 2013 to R288 606 in September 2014, a 10.6% year on year increase.

General Comments on Standard Bank Personal VAF Book:

• Personal Market book shows new vehicle market decreased from 57.5% in September 2013 to 55.8% in September 2014, while used vehicle market increased from 42.5% in September 2013 to 44.2% in September 2014.


• Passenger Vehicles marginally increased from 89.2% in September 2013 to 88.7% in September 2014 while Light Commercial Vehicles increased from 10.3% in September 2013 to 10.8% in September 2014.

Nicholas Nkosi – Head of Standard Bank Vehicle and Asset Finance – Personal Markets

General Macro and Industry Comments:

• The SARB left the repo rate unchanged at 5.75% following its September MPC meeting. The outcome was in line with the industry’s forecast. According to Standard Bank this was based on the SARB’s revised forecasts for headline inflation.


• Headline annual inflation rate (CPI) in August 2014 was 6,4%.  This rate was 0.1 of a percentage point higher than the corresponding annual rate of 6.3% in July 2014. On average, prices increased by 0.4% between July 2014 and August 2014. Transport index increased by 0.4% between July 2014 and August 2014. The annual rate decreased to 6.1% in August 2014 from 6,9% in July 2014.


• The SARB expects headline CPI inflation to average 6.2% in 2014, falling to 5.7% in 2015 and 5.8% in 2016, as opposed to their forecast in July of 6.3%, 5.9% and 5.6% in the respective years. Inflation was revised lower due to lower expected food and petrol prices.


• The change in the SARB’s outlook for inflation is significant in that they no longer expect inflation to peak in Q4:14, and estimate that the peak has already happened, in Q2:14 at 6.5% y/y.


• In addition, the length of time that the SARB expects inflation to remain outside of the target band has shortened, they expect it will fall below 6.0% in Q1:15 as opposed to in Q2:15.


• Growth was also revised lower, from 1.7%, 2.9% and 3.2% y/y in 2014, 2015 and 2016 respectively to 1.5%, 2.8% and 3.1%. Standard Bank expects GDP for 2015 and 2016 to continue to disappoint to the downside. The SARB has lowered its growth forecast for 2014 successively at each of the last 6 meetings (starting from 3.3% at the September 2013 meeting).


• Fuel prices have risen by 0.5% in petrol (inland) and dropped by -3.2% in diesel (inland) since Jan 2014 to October 2014. Further, the price of fuel in the country has gone up by 28.8% in petrol and up by 21.2% in diesel since Jan 2012.


• The price of 93 Octane Petrol will be increasing by 2 cents from the 1^st of October 2014. The price of 95 Octane fuel will be decreasing by 5 cents while both grades of Diesel will see a drop of 13 cents.

Fuel Types

• In the month of August 2014, Petrol vehicle sales had negative month on month growth (-5.6%) while Diesel vehicle sales had positive month on month (1.0%).


• Year on Year August 2014 versus August 2013 Petrol vehicles declined by -2.1% while Diesel vehicles declined by -0.1%.


• Year on Year YTD comparison for 2014 shows that Petrol vehicle sales declined by -6.6% while Diesel vehicle sales increased by 0.2%.

Also view:

Vehicle Finance, Car Insurance and Road Safety

Buying and Selling a Vehicle – Informed decisions and the Vehicle Retailer

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Vehicle sales numbers surprise in September despite challenging economic environment

Life Insurance coverage Star Ratings – September 2014

Coverage:

Age Range:

Occupation:

Gender:

In this report we research & rate the suite of life insurance merchandise to decide who offers the greatest worth from the 13 firms specializing in this industry.At a variety of stages of our life, life insurance coverage becomes vitally crucial. For these with a family to assistance, with debts to pay, with a business to retain or an revenue to defend, life insurance coverage is a have to. According to figures released by The Threat Retailer, over $ 4.4 billion was paid out for 70,895 life insurance coverage claims in Australia last year. That included:

• $ 1.96 billion of life insurance


• $ 1.16 billion of earnings protection insurance coverage


• $ 718 million of total and permanent disability (TPD) insurance and


• $ 555 million of trauma insurance

Back to Life Insurance…

Life Insurance coverage Star Ratings – September 2014

Promoting your automobile in September? 5 suggestions to get the greatest price

Acquiring rid of an old car can be an emotional experience – right after all, you may have shared some memorable experiences with your beloved motor…

But at least the parting blow is eased with a nice small windfall. So, to help you make the separation as painless as achievable, here are 5 automobile-promoting hacks to make certain you get as considerably money as you can for the old girl (or boy).

1. Get a realistic valuation

To you, the auto you’re promoting might be an invaluable treasure of memories and nostalgia, so you may look at it by way of rose-tinted spectacles. In your eyes, every dent is a memento for the years you shared, and every scratch a memorial to your friendship.

But come on, get true. It’s almost certainly worth much less than you think.

You are going to need to be realistic about what it is worth, otherwise you’ll really feel like you’re being brief changed – or it just will not sell.

You can use free of charge, on the web valuation solutions such as the on Glass’ motoring guide to get an objective view on what it may well be worth. You could also search for comparable vehicles on anything like AutoTrader.

Don’;t forget to appear for anything produced in the exact same year, with a comparable spec and mileage, for the greatest estimate.

2. Get it valeted

You can get your own marigolds on if you prefer, but a skilled valet job will truly show the vehicle off at its best, and could land you a greater cost on the sale – which signifies you will recoup what you spend on cleaning it anyway.

Bear in mind that if you do want to clean the car yourself, you are going to want to devote on the greatest cleaning products, such as items such as tyre shine. These fees will swiftly add up, and potentially be more high-priced than paying a person to do it for you.

3. Discover a excellent utilized car ad on the internet and use it as your template

If a possible buyer cannot see all the information they need in your ad, they’ll either carry on walking or skip onto the subsequent ad – so it is crucial you get this correct.

Here are the sorts of particulars your ad Have to incorporate:

• Make, model and year


• Mileage


• Colour


• Situation (be sincere here)


• Service history information


• Extras and modifications


• Tax and MOT details


• At LEAST 2 ways to make contact with you

Use a web site like Auto Trader to discover an ad you feel is comprehensive enough, copy it, and start off swapping out the details so that it applies to your car. When you’re completed, get an individual else to proofread it.

Even so! Be confident to triple-verify all the information are appropriate prior to you post on-line or on a notice board, as an inaccurate description could break the law.

And even with all this info, there’s anything even far more important your ad needs…

4. Get some good pictures (with guidelines from a pro)

When it comes to advertising your car, it does not matter how detailed your description is if your photographs are rubbish. Right here are 3 suggestions for obtaining the greatest shots from MoneySuperMarket’s video editor, Suzanne Biddle:

• Take images in excellent light, outside is ideal – not in the garage.


• Don’t just take photographs whilst standing, attempt crouching down for some attractive low angle shots.


• Make certain there is as small going on in the background as attainable.

5. Get a pre-emptive MOT

You can get an MOT at any time of the year, not just every 12 months – so if you have 3 months or significantly less left on your present MOT certificate, it’s worth placing it via the test early, because a complete year’s MOT will be much more appealing to a purchaser.

With a bit of luck and effort, your pre-loved motor will be in tip-prime situation and you’ll get the price tag you had been after.

Share your ideas on receiving the ideal price for your vehicle in the box below…

Promoting your automobile in September? 5 suggestions to get the greatest price