The background of South African vehicle sales market.

South Africa is a very big and unique market, with great opportunities and big challenges.
The car industry is so much developed, that vehicles become a stock market product, together with oil, gold, US dollar, so on. And the main reason for this its the law, which makes all vehicles bought via banks - property of banks, until the last payment for the loan has been made.

Because 90 % of cars bought on credit, and they are property of a bank - the price for all used cars are regulating artificially via books named “Car book value” issued monthly by TransUnion.

Due the lack of public transport as a concept, all South Africans who has attained the age of eighteen - need to have a car in order to survive. If you don’t have a car - your children don’t go to school & you can’t do any job.

Do not confuse South Africa with Europe or Asia, where you can sell a car, and start using the subway, trolleybus, tram or bus. There is nothing like this in South Africa, and "Asian solutions" such as scoters or motorbikes are not going to work because of very long distances are there. It's like a little USA. So verdict is that any single person over 18 y.o. must have a vehicle. Does not matter how much it cost : If you lucky with your job - you buy a better car, and if you lost your lucky job -you are selling a good car, but still buying a cheaper car. But you can’t sell a car and don’t buy any in return. This makes SA market extremely unique.

Imported vehicles are banned in South Africa. Not really banned, like banned but South African banks do not finance it due the lack of warranty, and insurance companies also do not want to deal with it. And cash market which is only 10 % of whole sales - can not provide conditions attractive enough for South African’s to buy it: no parts, no service, no cars older than 5 years, etc….

Attention to Japanese car dealers - forget about South Africa, and stop spamming them none-stop! They will not buy your vehicles.

South African car dealers are very conservative, and make them use something new, takes much more effort than even produce that service. They don’t want to listen anything new. But if you lucky enoght and finally get them - its a very stable and strong relationships and most of the time the business stands in the market thanks to a personal relationships rather than technology. And having only common sense - would not be enough to challenge South African market.

Vehicle Traders Limited Edition cc has an exclusive rights to represent our technology in South Africa after they bought 100 % of shares of South African business entry from AfricaUA (Pty) LTD in November 2013.

Since that time - we do not own South African business entry and providing only a contracted support and basic maintenance, which is very limiting our possibilities and ambitions.

Most of the time we are not agree with strategy & concept of new South African owners. And doing paid support and maintenance - we have no freedom of choice any longer as it was before, when we were shareholders and decision-makers of the business.

Andriy Bondar 

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