Rental firms put brakes on car sales | Economy

by David Furlonger, 2015-10-02 06:38:00.0

A BIG decline in demand from car rental companies contributed greatly to last months 13% fall in new car sales, WesBank research head Rudolf Mahoney said on Thursday.

Figures released by the National Association of Automobile Manufacturers of SA (Naamsa) show that compared to the previous September, sales fell last month from 42,965 to 37,309. As a result, the total new vehicle market fell 9%, from 60,782 to 55,322. For the year so far, the overall market is down 4%.

Mr Mahoney said private and corporate sales through car dealerships shrank only 2% last month. Car rental companies, however, cut their purchases 21%. "Tradition