http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.14Change: -0.31
R/$ = 14.91Change: -0.30
Au 1278.12 $/ozChange: -9.13
Pt 1054.50 $/ozChange: -13.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 23, 2008

WesBank launches auto indicator

Back
 
 
 
 
 
 
Africa|Finance|Health|Africa
Africa|Finance|Health|Africa
africa-company|finance|health|africa
Financial institution WesBank on Wednesday launched its first vehicles sales confidence indicator, which is aimed at measuring current and future market activity.

The indicator measured a level of activity of 5,6 in September last year, which was ‘inactive'. At December 2007, the three-month indicator was 5,4, but it was expected that it would rise to 6 and to 6,5 in the next six to 12 months, respectively.

The market was labelled as inactive for a number of reasons, 87% of respondents identified increased interest rates and the National Credit Act (NCA), and one in four respondents mentioned higher fuel prices.

Sales and marketing director Chris de Kock said that the level of activity on the showroom floor should start to plateau and then grow again toward the latter part of 2008. He added that dealers and dealer staff were more optimistic that the gear-up for 2010 would create increased demand for light delivery vehicles and heavy commercial vehicles.

He noted that the drop in vehicle sales seen last year had been off a very high base.

De Kock explained that the indicator was born out of a desire for consistent information about the "health" of the market.

The indicator presents confidence in vehicle sales as a measurable statistical score, and provides something different to the monthly National Association of Automobile Manufacturers of South Africa figures in that it allows for a forecast as opposed to purely historical figures.

WesBank teamed up with an independent research house to produce two sample surveys performed on 500 candidates drawn from vehicle sales people, dealer principals, dealer general managers, franchise directors and vehicle sales managers.

The sample was taken across the country and represents an even distribution of candidates from all manufacturers, brands and franchises. Participants responded to a series of market-related questions with answers on a scale of one to ten, ranging from highly inactive at the bottom to highly active at the top of the scale.

Tracking trends


In addition to the confidence indicator WesBank has identified key headline trends taken from its book, which, owing to the size of its customer base, could be deemed large enough to represent overall market activity.

WesBank said it had seen a significant growth in the emerging African market, with this particular demographic up 15% year-on-year in an otherwise declining buyers market.

De Kock noted that last year black buyers accounted for over 34% of the finance company's book, compared with 17% in 2004. Within the grouping, African female buyers in the 26 to 30-year age group were also found to be particularly active.

De Kock commented that the demographic had been a "very strong contributing factor to the growth of the industry".

WesBank also found that increasing numbers of customers were opting for longer finance contracts on their passenger vehicles, notably an increase in those extending the finance period longer than 60 months. In the fourth quarter of 2007, some 24,7% of customers elected the over 60-month finance period. This facility had not been available prior to the introduction of the NCA, and the majority of buyers, about 90% elected to finance over a 54-month period.

De Kock said that he did not expect this trend to continue, as the capital reduction was much slower causing the loan value to remain higher than the value of the vehicle for a far longer period, and thereby limiting the customer's ability's to replace the vehicle.

Another trend identified during last year was that more customers elected a fixed rate, rather than linked rate. A fixed rate allows customers to agree on an interest rate, at the time of signing the agreement, which remains the same regardless of fluctuations during the course of their repayments, while a linked rate changes with the prime interest rate.

Over 60% of customers chose the fixed-rate option from July to December last year, while December customers with the linked rate accounted for just less than 30%.

De Kock said that this trend was likely to stay the same for this year, and possibly drop off should interest rates drop off in 2008.
Edited by: Creamer Media Reporter

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Automotive News
 
Latest News
Brenda Berlin
Updated 2 hours 35 minutes ago Platinum mining company Impala Platinum (Implats) has secured a court order against a US platinum recycler, from which it is claiming $201-million. Implats said on Wednesday that the order, issued by the US District Court for the Eastern District of Pennsylvania,...
Andrew Hinkly
Updated 3 hours ago A potentially far-reaching step has been taken towards the viable roll-out of hydrogen refuelling infrastructure for platinum-using fuel cell electric vehicles (FCEVs) with the launch of a system that allows hydrogen to be stored and transported in conventional fuel...
Johannesburg mayor Parks Tau
Updated 3 hours ago At least R14-billion in investments had seen the economic development of the City of Johannesburg, resulting in economic hubs that created jobs and further opportunities for the city’s citizens, mayor Parks Tau said on Wednesday. The city had begun redesigning the...
More
 
 
Recent Research Reports
Energy Roundup – May 2016 (PDF Report)
The May 2016 roundup covers activities across South Africa for April 2016 and includes details of the National Energy Regulator of South Africa’s proposal to introduce a coal benchmark cost as part of its final decision on Eskom’s multiyear price determination...
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
Sanral CEO Nazir Alli
Updated 5 hours ago KwaZulu-Natal is not set to get e-tolling in the near future, but this may change if the volumes of vehicles increases. South African National Roads Agency Limited (Sanral) chief executive Nazir Alli, speaking on Wednesday at a business presentation, said that the...
Updated 5 hours ago Striking South African Transport and Allied Workers Union (Satawu) members returned to the allocated picketing points on Wednesday following a interim interdict being obtained by their employers Teti Traffic, this after workers had blocked traffic on the N1 highway...
Updated 7 hours ago The Organisation Undoing Tax Abuse (Outa) has said it doubts claims by road authorities that 300 000 people had taken up the etoll discount dispensation of 60%. Chairman of Outa, Wayne Duvenage, said: “Anything short of R2.5-billion collected or committed for...
Article contains comments
Article contains comments
More
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149