corresponding period of last year. The
knock on effect of a normalisation in
supply of new vehicles is that the pre-
owned vehicle pricing is also expected to
return to normal. This could negatively
affect dealers as well as motorists who
bought pre-owned vehicles at inflated
prices when the time comes to sell.
“The positive growth in new vehicle
sales is surprising but only time will tell
if it is sustainable. The interest rate is
putting cash strapped consumers under
increased pressure as monthly debt re-
payments eat into what little disposable
income they may have,” says Derick de
Vries, Executive Head of Standard Bank
Fleet Management.
Just last week, the South African
Reserve bank raised the interest rate
for the seventh consecutive time since
November 2021 and the third con-
secutive time by 75 basis points, to its
highest level since 2016. GDP growth in
South Africa continues to be adjusted
downwards and is now expected to be at
1,1% in 2023.
Fleet managers need to continually
evaluate all aspects of their business to
ensure that they have the right solution
for their needs in the current environ-
ment. This can only be done with a well
thought out fleet management system
and the right financing programs in place.
“Being able to survive in such
turbulent times requires partners that
are flexible and that allow business to
adapt quickly to changing needs and
requirements. Standard Bank offer a
variety of vehicle and asset financing
solutions that give our customers this
flexibility and allow them to rapidly make
the changes in their business that are
needed in order to remain competitive
in the current economy,” adds de Vries.
These solutions include financing op-
tions such as instalment sales, a finance
lease, operating rental, sale and lease-
back, discounting arrangements or an
interim agreement. This variety ensures
that Standard Bank are able to keep their
customers on the road amidst changing
usage and financial requirements.
“Many businesses and individuals have
carried COVID fatigue into 2022 and after
a good break it will be great to truly start
the new year afresh. A fresh start will
allow everyone to tackle 2023 with gusto,
despite the challenges with which it may
present itself,” concludes de Vries. BFA
‘The positive growth
in new vehicle sales
is surprising but
only time will tell
if it is sustainable.
The interest rate
is putting cash
strapped consumers
under increased
pressure as monthly
debt repayments
eat into what little
disposable income
they may have.’
December 2022 | BUSINESS FLEET AFRICA
WWW.BUSINESSFLEETAFRICA.CO.ZA