Petrol price hike affects sales

The rise in the price of petrol this week will have a decisive influence at tomorrow's Park Village Auctions sales, says spokesma n Clive Lazarus.

The rise in the price of petrol this week will have a decisive influence at tomorrow's Park Village Auctions sales, says spokesma n Clive Lazarus.

The sale takes place tomorrow at the Bank Asset Disposal Centre, Prolecon Road, Prolecon, commencing at 10.30am. Viewing is today from 9am to 4pm.

Lazarus reports that strong demand is expected for smaller-engined vehicles and diesel-powered commercials in particular.

"Petrol prices are definitely beginning to influence demand and there's no doubt we are going to see a downsizing trend, both in the auction sector and almost certainly in the new market as well. Having said that, there is still solid demand for executives, exotics, 4x4's and quality marques," he said.

"Interestingly, anything up to 1600c is in strong demand at the moment and thereafter, depending on the vehicle, prices for certain vehicles have softened a bit," says Lazarus.

"It will be interesting to see if the trend continues. Often in the past we have seen a similar reaction from the market place when the petrol price moved up and later buyers become used to the new levels, so that could happen again.

"A further permutation of the petrol price rise may be a stronger demand for motor cycles. It's an interesting prospect.

"What is clear however is that there is plenty of clean, later model stock coming through from the likes of Standard Bank Vehicle & Asset Finance, Nedbank and BMW Financial Services, as the number of repossessions and liquidations have increased as a result of the somewhat tougher business conditions.

"Brands such as BMW, Mercedes, Audi, Nissan, Honda, Volvo, VW, Ford Mazda and more are on offer tomorrow and because of the strong supply and tighter credit conditions, it's become a buyer's market".

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