www.autolive.co.za Issue No. 94 | 23 February 2017 EMBRACING THE FUTURE TODAY Personalised solutions are what car buyers are looking for in the purchasing process nowadays. WesBank CEO Chris de Kock Th is was the clear message from Chris de Kock, the CEO of WesBank, in his opening address at the fi rst Business-of-the-Year roadshow staged at the Kyalami Conference Centre recently, under the auspices of NADA and Sewells-MSX International. “Th e future of buying cars is no longer the future. It is now!” stressed De Kock. He explained that the time-old linear process starting with search (for a new car), then sell (your trade in car), and lastly fi nance (your new car) is no longer relevant, saying that it is ineffi cient, does not off er a personalised experience and is expensive. “Only about 10 per cent of the people who start this process actually end up buying a new car. Firstly, an average of about 30 per cent are not in the positon to settle the outstanding balance on their present car, while only about 40 per cent get Futurist Graeme Codrington approved fi nance. Th is results in only about 10 per (centre) fl anked by cent of the potential customers actually doing the Warren Olsen (left), CEO of deal,” added De Kock. Sewells MSX International Th e recent amendment to the National Credit in South Africa and Act stipulates what credit providers can accept Gary McCraw, Director of in terms of aff ordability rules, leaving very little NADA at the Retail Motor latitude for those customers who do not have Industry organisation (RMI). suffi cient disposable income to take on additional debt – hence the high declination rate. Most buyers nowadays opt for a repayment period of 72 months, with more than 30 per cent vehicle (trade-in), happens only from year four, hopefully at the motor retail business countrywide of these transactions involving one-time balloon whereas most SA consumers prefer to purchase a – is very much on the changing consumer buying payments. Th e negative eff ect of this kind of debt new car on three-year cycles. So many are turned patterns in South Africa. structure is that the point at which the outstand- away or forced to pay in large shortfalls. ing balance meets with the potential value of the However, the focus at WesBank – and continued on page 2 Page 11 Page 18 Page 23 Win gadgets Do we need our own Excitement builds over with AutoLive safety ratings? Naacam show Subscribe for free @ www.autolive.co.za Page 2 Editor and Advertising Manager continued from previous page not be encumbered by traditional and solar farms generating power in Liana Reiners organisational structures. “It is now South Africa while these resources, [email protected] WesBank generally follows time to think out of the box and set together with other methods will add 083 407 4600 trends in the United Kingdom as up fl atter structures which could to low cost energy production. He they usually migrate to South Africa. react quickly to changes. It is a case cited the eff orts of the Breakthrough Contributors One of the trends becoming stronger of switching from business as usual Energy Coalition, which is a global Roger Houghton is that people are looking more at us- to business unusual,” he commented. group of 28 high worth investors [email protected] ing cars rather than owning them. Renowned futurist, Dr Graeme from 10 countries – headed by Bill 082 371 9097 Younger people are also no Codrington spoke at length about Gates of Microsoft – which is com- Stuart Johnston longer car mad, with the number of how disruptive forces are shaping mitted to funding innovative, clean [email protected] under 25-year olds buying a new car all aspects of the world today and energy companies. 083 450 9255 now being 30 per cent lower than 15 how he feels we should respond. Codrington went as far as to say years ago, while 20 per cent fewer He sketched future scenarios that that the availability of cheap energy Advertising Sales 18-year olds have a driver’s licence, ranged from autonomous cars to car will lead to the making of water Liana Reiners compared to the situation in the sharing and the need for motor deal- through desalination and chemical [email protected] 1960’s and ‘70’s. ers to adapt or die in an environment processes. “Cheap energy and the 083 407 4600 De Kock explained that potential of radical changes. subsequent availability of adequate car buyers are no longer researching According to Codrington these supplies of water will provide Address only cars on the internet, but are also developments will have far-reaching an enormous boost to the global 237 Rigel Avenue using this medium to look for fi nan- eff ects, ranging from a steep decline economy and accelerate change,” Waterkloof Ridge cial and insurance packages. Oft en, in the requirement for parking, lower said Codrington. Pretoria they have worked out how much they income for insurance companies He stressed the importance PO Box 914 005 can aff ord in payments before they (fewer cars on the road), local of integrating business processes Wingate Park look at the cars they are considering. authorities (from traffi c fi nes, licence instead of having them out on a limb, 0153 Social media plays a major role fees and parking charges), while the such as was the case in the past with 012 460 4448 in decision making when buying ownership and composition of vehi- aspects such as quality control and a car, with 87 per cent of potential cle fl eets will also change … probably health and safety. Website buyers saying that they had already dramatically. He went on to spell out guide- www.autolive.co.za researched their potential purchase Codrington said it was now lines for businesses in the chang- on social media sites before going to vital for all businesses to be aware ing world. He came up with fi ve Facebook a dealer. of the latest developments on all the mindsets: www.facebook.com/pages/AutoLive “We need to catch up to stay fronts that will or may aff ect them. ■ Switch on the radar. Look © 2017 WCM Media CC relevant,” urged De Kock. Currently aspects range from max- ahead. Shift attitudes where “Dealers will still be important imising the use of mobile devices, necessary. Involve all members Production because most customers want to which are now far more than just a of the business team in looking experience their new car before means of communication, to virtual for new business opportunities. Marketing Support Services ■ Danie Dreyer buying it. Th ey also want expert reality, changes in the fi nance world Be curious. Th is must also be a [email protected] advice on options for the car as well with the arrival new concepts such team eff ort too. ■ +27 (0)12 346 2168 as answers concerning insurance as Blockchain and Bitcoin, and real Experiment. Instil a culture of and fi nance queries. Th ey still yearn time language translation on Skype. experimentation. Learn lessons Layout and Typesetting for the personal aspect in the buying He also mentioned several other from failures. ■ Bonita Tuson process. What is interesting is that trends, one of which was longevity; Embrace diff erence. Use it as an the number of motor dealers in the for instance, nearly 20 000 people in advantage. ■ Disclaimer UK is growing, not declining, as the South Africa are now over 100 years Confront your limiting car-buying landscape changes.” old! Th is means that the previous orthodoxies. Remember that While reasonable precautions have been taken to ensure the accuracy Scott Gibson, the Group norms for people retiring and mov- some of the things you do today of the advice and information given Executive, Digital Practice at ing out of the buying cycle no longer are still anchored in the past. to readers, neither the editor, the Dimension Data continued in a apply and businesses must adapt! proprietors, nor the publishers similar vein, reiterating the challenge Codrington placed strong Codrington concluded by saying: can accept any responsibility to companies about how they are emphasis on the availability of cheap, “Every threat has an opportunity and for any damages or injury which responding to digital disruption. sustainable energy. He said that having a future-focused toolkit is the may arise therefrom. For starters, he said companies must already there are more than 70 wind way to go.” ■ MONTHLY SALES STATISTICS The growing amount of advertising in AutoLive has made it necessary to relocate the four pages of detailed monthly vehicle sales analysis to the website www.autolive.co.za. CLICK HERE to access Subscribe for free @ www.autolive.co.za Page 3 Editor’s Note Toyota Outsells VW Again Toyota outsold Volkswagen in the South the case of medium commercial vehicles, South African roads are haz- African new car market for the second was a decline of 15 units or 3.0% and, ardous places to be, largely time in three months in January. When it in the case of heavy trucks and buses, because of poor attitudes and achieved this feat in November last year it a decline of 14 vehicles or a fall of 1.3% behaviours from road users. ended an uninterrupted run of 68 months compared to the corresponding month Of course inclement weather of passenger car market leadership for the last year. conditions such as those Uitenhage-based manufacturer.