Motoring News

Auto dealers beg Reserve Bank for interest rates cut

JOHANNESBURG, Gauteng – The South African National Automobile Dealers’ Association is begging the South African Reserve Bank to consider reducing interest rates after another month of falling vehicle sales.

There were 36 922 new vehicle (passenger and commercial) dealer sales through June 2019 (June 2018 was 38 292), 3.6% fewer than June last year. Worse, cumulative sales so far in 2019 were 224 564 – 4.2% down on 2018.

Mark Dommisse, Nada’s chairman, told The Corner in a media release: “It’s been quite a painful start to winter. The vehicle retail passenger and commercial vehicles market continued its downward trend.

‘DRASTIC ACTION NEEDED’

“We would like to see the governor of the SA Reserve Bank announce lower interest rates this month in an attempt to stimulate retail sales market. Drastic government action is needed to stimulate retail sales  across the whole economy.

”We live in a consumption-based society in which consumer confidence a major driver. As consumers increase expenditure and confidence, so the economy grows. Reduced interest rates, along with fuel prices, will go a long way to helping both the consumer and the private sector.”

‘HELP, MR PRESIDENT…’

As the new vehicle market falls, so vehicle buyers were turning to used vehicles. NADA was looking for more stability in the new-vehicle market in the second half of 2019.

Dommisse, consequently, appealed to South Africa’s president Cyril Ramaphosa’s plans to create youth employment, an inclusive economy, and build infrastructure.

”People with jobs will increase spending and investing, ultimately driving the economy,”

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