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New car sales rise above inflation in the fourth quarter
By Edward West
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CAPE TOWN - NEW VEHICLE prices continued to climb above the inflation rate in the fourth quarter of last year, adding to what will be a challenging 2021 for the automotive industry.
In a market constrained by the financial effects of the Covid-19 pandemic and many motor dealers struggling to remain in business, the latest TransUnion SA Vehicle Pricing Index (VPI) showed vehicle prices rose above the inflation rate for the third successive quarter in the past three months of 2020.
TransUnion Africa auto information solutions vice-president Kriben Reddy said yesterday that this trend could indicate further car price increases in 2021.
Vehicle repair association wants insurers to give consumers access to the vehicle write-off register. 00:01
Having begun its âsecond lifeâ as a result of nefarious activity, a rebuilt write-off will invariably be dangerous to drive. Image: Shutterstock
Unsuspecting used vehicle buyers are purchasing cars without knowing they have been previously written off because the registration code of the vehicle â possibly through fraud, bribery and corruption â has not been amended to reflect this.
Not only does this lead to consumers purchasing a used vehicle at an inflated price but these rebuilt vehicles are often unroadworthy and dangerous to drive and require the new owners to spend a significant amount of money to get them into a safe and roadworthy condition.