Although new vehicle sales showed growth in November, marking a second consecutive month of improvement, many consumers are still hesitant to make purchases. A significant number are holding off, hoping for further reductions in interest rates, while others opting to buy are choosing less expensive vehicles.
The demand for used vehicles also remains high, but many potential buyers seem to be exploring their affordability options or testing their credit without fully committing to purchases, according to Thembinkosi Pantsi, Vice-Chairperson of the National Automobile Dealers Association NADA.
While recent interest rate cuts have brought some optimism, many buyers are taking a cautious "wait-and-see" approach, assessing future rate movements before making any decisions.
WesBanks marketing head, Lebo Gaoaketse, emphasized that while the market has shown some positive signs, it still requires much more momentum to be considered on a solid recovery path. Gaoaketse pointed out that the continued pressure on household budgets due to inflation is keeping many consumers financially strained.
