The numbers of new and used vehicles financed have fallen 7percent and 2percent quarter-on-quarter respectively, in spite of the VPI for new and used vehicle pricing remaining below inflation, with used vehicle pricing increases at their lowest since the same quarter 2014.
The new vehicle VPI moved to 3.1percent in the quarter under review from 2.6percent in the first, while the used vehicle index fell sharply from 2.5percent to 1percent.
The index measures the relationship between the increase in vehicle pricing for new and used vehicles from a basket of passenger vehicles, which incorporates 15 top volume manufacturers. Vehicle sales data is collated from across the industry to create the index.
“There is a direct correlation between current macro-economic conditions - the country’s negative gross domestic product growth of 3.2percent for the first quarter - the lowest it’s been in the past 10 years - and the constrained new vehicle market,” said Kriben Reddy, the head of Auto for TransUnion Africa.