vehicle repossessions hit new highs
16 July 2008

WesBank's repossession numbers have reached their highest levels in recent times, the vehicle and asset finance company said today. However, these levels were still lower than the percentage of the bank's book back in 1998.  "We don't expect the repossession numbers, as a percentage of our book, to climb to the levels we saw 10 years ago," wrote Chris de Kock, WesBank's sales and marketing director, in a statement.

WesBank was presenting its second quarter Vehicle Sales Confidence Indicator (WVSCI) in Johannesburg. The WVSCI held very little good news for the vehicle market.

"An industry that was speaking of record months and annual sales increases just a short time ago, is now battling with the realisation of dealerships closing and record low levels of confidence," De Kock said.  WesBank noted that since the indicator was launched last year, the score had been dropping steadily from 5.4 at the end of 2007, to 4.7 at present.  "The number of respondents describing the market as 'highly active' is almost non-existent," read the statement.

Markets feel the pinch

Factors that were cited by the respondents focused almost exclusively on interest rates and fuel prices.  Other reasons given in previous research, such as the National Credit Act (NCA) and the bungling that accompanied setting up the national traffic information system eNatis, were hardly mentioned at all.   "The market is feeling the squeeze of local Reserve Bank policy and global oil and food prices, it is as simple as that," De Kock said.

Looking at the coming 12 months, WesBank expected consumers to stay under significant pressure, though the bank had already seen the number of customers in arrears start to stabilise.   Wesbank advised consumers, regardless of financial institution, to speak to their bank before falling into arrears. 

  
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