Kea' Modimoeng

Kea' Modimoeng

Motor trade sales for the second quarter soared 7,7percent compared with last year's second quarter, despite high interest rates and fuel prices.

This was according to figures released by Stats SA yesterday.

"One of the reasons motor sales have gone up is because the dealer universe has increased their service levels such as various options on paying plans, postponement of first instalments, iPod and other DVD features," said Christopher Grant, marketing manager of Auto Trader.

"Consumers are now shopping around more and they continuously try to balance features with price. They are no longer 'status' driven but cost and functionality conscious," said Grant.

Vehicle sales experienced the strain brought on by high interest rates and rising fuel prices during the first six months of the year.

"The most important thing they take into consideration, which is obviously influenced by the economic situation, is the dynamics of how the car will benefit them, fuel consumption, power steering and boot space.

"The economic conditions have made car buyers more clear when evaluating the dynamics of how the car will benefit them. They mainly look at the average fuel consumption, other features such as power steering and they even evaluate things such as boot space," Grant said.

The data states that the major contributors to the increase in motor trade sales were income from fuel sales and accessories.