South Africa’s new-vehicle business market has declined by 14.2% for the year to end August, compared with the same period last year, says Standard Bank Vehicle & Asset Finance business markets head Toni Fritz.
The used vehicle business market has dropped by 18.1% year to date.
Combined, the two markets declined by 15.2% year to date.
South Africa’s business vehicle market includes fleet and rental cars, light commercial vehicles, medium trucks, heavy trucks and buses.
The South African new and used business vehicle market sold 652 units a day in August 2013, compared with 669 units in August 2014, with the month having more selling days than last year.
Light commercial vehicle sales in August increased 1.7% month-on-month, while heavy commercial vehicles and extra-heavy vehicles also had positive growth month-on-month, at 6.7%.
“While the South African economy still struggles to gain ground, we have seen a turn in vehicle export numbers in August, up some 10.08% month-on-month,” adds Fritz.
Passenger vehicle exports improved month-on-month by 31.09%, while light commercial vehicle exports declined by 17.10%.
The average deal size in the business market has increased 22.2% year-on-year, with the average repayment term increasing year-on-year to 52 months, up from 50 months in August last year.
“We still expect a slight improvement in the last quarter of the year for business markets,” says Fritz.