23 May 2008

Stats In SA Used Car Market

Submitted by: Claire Young Save to Instapaper
{pp}While the new car market in South Africa is slowing down, searching for used cars online is on the increase as consumers look to find more economical cars.

AA Autobay’s [www.aaautobay.co.za] used car market research findings, based on Internet usage, yield significant information on trends in the car market in South Africa. During the period from October 2007 to March 2008 there was an overall decline in Internet searches for cars in general – that is both new and used cars. The drop, 34% based on search engine impressions, can be attributed to a number of economic factors, including the rate of inflation, the continued interest rate hikes, and the soaring petrol price.

“This trend can also be seen in the new car market where there has been a significant drop in sales this year compared to the same period last year,” says Ed Gassner, CEO, AA Autobay.

“A result of these economic forces is an upsurge in the used car market. Consumers are on the lookout for affordable cars that will bring them the most value.”

In October 2007 the most popular car brand searched for on the Internet was Honda, followed by Hyundai, Toyota, Volkswagen and BMW. The searches for Honda constituted 20% of the total searches with second place Hyundai only accounting for 11% of the total searches.

Six months later, in March 2008, Honda was still the most searched for car online, but only accounted for 16% of the total searches. Toyota moved into second place, followed by Volkswagen, BMW and Opel.

Car Brands______Estimated Internet Search Share (SA Only) ________________Oct-07*____Ranking____Mar-08______Ranking Honda_______________20%_______1_________16%________1 Toyota______________10%_______3_________13%________2 Volkswagen________9.80%_______4_________13%________3 BMW______________7.40%_______5__________9%________4 Opel_______________4.00%_______9________5.25%_______5 Ford_______________4.70%_______7________4.86%_______6 Nissan_____________4.70%_______8________4.05%_______7 Hyundai___________11.00%_______2________3.49%_______8 Mercedes Benz____3.20%______10________3.36%_______9 Mazda____________2.90%______11________3.18%_______10 Audi______________2.90%______12________3.12%_______11 Renault___________2.90%____Below 12____2.36%_______12 * Percentage of total online searches

“While this doesn’t really show us much distinction between smaller, more cost-effective cars, and the larger, luxury cars, it does indicate the decrease in searching behaviour,” says Gassner.

The research findings from the AA Autobay portal, based on March 2008 figures, indicate that Volkswagen was the most popular used car brand, followed by Toyota, BMW, Audi and Mercedes Benz.

The most searched for models within the Volkswagen brand were the Polo Playa and Golf 4 and 5, with the Conquest/Tazz and RunX being the most popular within the Toyota searches.

Used Car Brands___Searches on AA Autobay Site __________________Mar-08*_________Ranking Volkswagen_________20%______________1 Toyota_____________15%______________2 BMW_______________11%______________3 Audi_____________6.78%______________4 Mercedes Benz____6.73%______________5 Opel______________5.97%______________6 Ford______________4.80%______________7 Renault___________3.79%______________8 Nissan____________3.51%______________9 Honda____________2.62%_____________10 Mazda____________2.43%_____________11 Hyundai__________2.26%_____________12 * Percentage of total searches

Gassner states that this clearly signifies a move by consumers towards used cars, in both small, cost-effective models, as well as larger, high end vehicles.

“Used cars are increasingly popular because they offer the consumer so much more value. While consumers are looking for the small, cheaper to run cars like the Polos and Conquests, they are also looking to AA Autobay for the more expensive, luxury cars from the likes of BMW, Mercedes Benz and Audi.”

AA Autobay has 13 branches nationwide. Visit www.aaautobay.co.za or contact the sales centre on 086 1 22 22 29 to find out more.

Contact Information:AA AutobayTania SteenkampTel: +27 11 277 0000E-mail: tania@aaautobay.co.za

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