http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.78Change: 0.21
R/$ = 13.14Change: 0.02
Au 1124.48 $/ozChange: -1.37
Pt 1001.00 $/ozChange: 19.50
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 23, 2008

WesBank launches auto indicator

Back
 
 
 
 
 
 
Africa|Health|Africa
Africa|Health|Africa
africa-company|health|africa
© Reuse this 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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Automotive News
 
Latest News
Updated 5 hours ago South African water utility Rand Water’s Sedibeng Regional Sanitation Scheme will be undergoing major upgrades to unlock residential and business developments in the Vaal area, as well as parts of the south of Johannesburg, the Gauteng provincial Department of Human...
Updated 5 hours ago State-owned entity Land Bank has posted a 9.3% drop in profit from continuing operations year-on-year, citing a decline to R352.5-million in the 2015 financial year from R388.6-million in the 2014 period. The bank’s net cash position improved from R1.47-billion to...
Updated 6 hours ago Power lines connecting the east African states of Tanzania, Uganda, Rwanda, Kenya and Ethiopia are expected to be completed within the next three years, helping improve supplies and power trading, a senior Kenyan official said on Thursday. Power shortages are common...
More
 
 
Recent Research Reports
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
Parliament’s Portfolio Committee on Public Enterprises has welcomed the turnaround strategy of State-owned regional carrier South African Express (SAX). This was reported in a media statement issued by the Committee, following a briefing it received from the airline...
KARSTEN WELLNER The acquisition was aligned with the Ascendis international growth strategy of diversifying across different markets
Health and care brands group Ascendis Health last week announced its first international acquisition – an initial 49% stake in Spanish pharmaceutical group Farmalider for R210-million.
CYRIL RAMAPHOSA Attention needs to be paid to basic and secondary education, as well as higher education, vocational training and adult education
Deputy President Cyril Ramaphosa chaired a Human Resources Development Council (HRDC) meeting at the Pick n Pay regional offices in Johannesburg earlier this month, where it was revealed that baker was the third scarcest occupation in South Africa.
BRETT WALLACE Festo customers can physically test any electric drive applications in a controlled environment
The applications centre at multinational industrial automation company Festo’s Isando offices, in Ekurhuleni, will test and prove concepts and systems for clients to ensure that the systems deliver the intended value once installed, says Festo South Africa MD Brett...
Several Chinese companies plan to invest in infrastructure projects in Malawi, the Southern African country's investment and trade promotion body has revealed. Malawi Investment and Trade Centre CEO Clement Kumbemba says the prospective investors include China...
 
 
Updated 6 hours ago The Johannesburg Roads Agency (JRA) will spend R99-million to improve and maintain road infrastructure in the city’s B region. The B region included relatively developed suburbs such as Windsor, Albertville, Blairgowrie, Bryanston, Bosmont, Coronationville, Cresta,...
Sanral CEO Nazir Alli
Updated 7 hours ago Sanral CEO Nazir Alli wrote to the city to seek a “win-win solution” and avoid legal action over tolling, but at the same time he said tolls were the only way to fund a project to upgrade roads. This emerged from correspondence between mayor Patricia de Lille and...
The South African Revenue Service (Sars) plans to unpack a number of new Acts that will change the landscape of the customs framework, and will provide some highlights of what to expect from an Act that has left the freight transportation industry somewhat...
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 $96 Close
Subscribe Now for $96