Latest figures show new vehicle sales saw a sharp decline in the first month of 2016, as the local economy continues to show signs of weakness.
According to the National Association of Automobile Manufacturers of South Africa, the sales of all vehicle segments have declined by 6.9% in January.
The figures show that light commercial vehicles recorded the biggest decline followed by passenger car sales.
Wesbank's Rudolf Mahoney says sales of used vehicles, by contrast, have increased sharply in the past few months.
“There is a gap between new and used cars as the rand depreciate. 75% of the cars sold are used imported so subject to the currency risk. So new cars price are increasing more than used and costumers are finding better value in the used car markets,” says Mahoney.