Sales data released by the National Association of Automotive Manufacturers of South Africa(NAAMSA) confirms that South Africa is in a economic slowdown. Vehicle sales have long been a leading indicator and Economists watch these numbers for any sign that the bottom has been reached. Vehicle sales have been negative since the introduction of the National Credit Act (NCA)  and more stringent lending criteria virtually froze many prospective car buyers out of the market.

According to NAAMSA new car sales for March 2009 were down a whopping 30.3 compared to April 2008 ,a total of 36 332 units sold compared to 52 146 for the previous March. The decline for the first quarter of 2009 is 34.2% comapred to 2008 Q1 figures.

Factors contributing to the slowdown are the global recession as well as more stringent lending criteria since the introduction of the NCA in 2007. Global auto manufacturers have also been experiencing tough times with the future of US automakers General Motors and Chrysler appearing bleak. General Motors having to go through a major restructure while Chrysler recently went into bankruptcy.

It may not be quite so bad for the local auto industry , but times are tough and many auto workers are facing retrenchment. What does this mean for South African car buyers , if you can obtain financing or better yet don’t need financing , you are in a fantastic position to score some great deals. Dealers are keen for business and you should be able to negotiate a good deal.

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