Johannesburg - South African new and used vehicle price increases continue to trail general inflation, according to the Vehicle Pricing Index released by TransUnion.
The index reveals that new vehicles prices showed an annual increase of 2.5 percent during the fourth quarter of 2018, versus 2.4 percent in Q4 2017, while used vehicle inflation slowed to 1.6 percent in the last quarter of 2018, from 3.5 percent a year earlier.
Both were well below the general consumer price inflation of 4.5 percent recorded for the final quarter of last year.
“Challenging economic conditions have seen manufacturers reduce the price of new vehicles in real terms as a way of stimulating sales,” TransUnion Africa head Kriben Reddy said.
“It is important to consider the overall cost of owning a vehicle, not just the purchase price. Factors such as household disposable income and consumer confidence are also part of the changing dynamics of the vehicle market."