Used vehicles now more in demand than new vehicles

Demand for used vehicles outstripped new vehicles 2.36:1 in March, a figure last seen in December 2009.

WesBank reports that the demand for vehicles, as measured through the volume of finance applications received, was negatively affected during March 2016, but that used vehicles are growing in popularity.

WesBank’s data shows that new vehicle finance applications went down by 20% year on year. Despite the demand for used vehicles declining by 3% in March, the used vehicles now outstrip new vehicles. This is a scenario last experienced in December 2009.

"It's safe to say that we’re now in a used market. Although demand softened slightly for used cars, it remains strong when compared to the rest of the market,” said WesBank’s head of brand and communications, Rudolf Mahoney.

"The used-to-new sales ratio indicates that consumers who previously bought new are now taking their budgets to the used market. Those who have cars are also choosing to hold onto them for longer, further affecting vehicle sales."

At the Car of the Year banquet in March WesBank forecast that consumers were expected to shift to the used market this year, resulting in total industry new vehicle sales declining by 12%.

News24.com

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