April 2020

Quarter 1 overview

In this edition of the Auto Insights newsletter, we will shed light on why some vehicle buyers will hold on to their vehicles longer, find out which car brand retains its value the best, and understand what we are doing to make sure we still deliver excellent service to you, amidst the coronavirus crisis and much more.

Please feel free to let us know if you find this newsletter useful or if there is any other information you would like to see. 

Market overview

South African vehicle market 

In March 2020 NAAMSA reported an aggregated new vehicle sales total of 33 546 units - of which 82.9% represents dealer sales. 
Here is how the different segments performed in the last year.

Read more

Used Vehicle Market 

The average age of used vehicles financed through Signio has been steadily rising over the 5-year period from 2014 to 2019, indicating that car owners are keeping their vehicles longer than in the past. This is due to the tough economic climate we have been experiencing in recent years.  

International Trends 

With the advent of the Covid-19 pandemic, new vehicle sales around the globe have experienced falling sales as governments encourage social distancing and implement lockdowns of varying degrees of severity. 
Further to this, we have witnessed rapid change in the economic landscape over the past few weeks. 

Lightstone used vehicle retention curves 

Our retail valuations offering helps our clients understand what value a car will hold in the future and which vehicles retain their values the best. 

Our calculations are based on retention rates that are specifically developed for used vehicles aged up to 20 years. In simple terms, these rates are defined as “how much a vehicle is worth relative to its original new list price” for any given age. 
 

Brand contributions

Best performing vehicle segments over the last year 

Compared with the corresponding period last year, the Light Vehicle Market (Passenger and Light Commercial combined) for the six months from October 2019 to March 2020 has contracted by 6.8%. 

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Our roadshows

A unified Lightstone embarked on a first ever national roadshow in February 2020. We are grateful for the high turn-out and the positive feedback we received.

Pieter Wessels, Managing Director and Jaco van Staden, Head of Sales, were our speakers but also our ‘tour guides’ as they took the audience on a journey where Lightstone came from, where we are today and where they think the industry will be in future. That ‘will be’ section was where the more interesting gems were dropped – with the speakers painting a picture of the valuable, integrated work Lightstone is doing to help futureproof our clients and keep them ahead of their competition.

Contributing to the roadshow’s success was the inviting environment experienced.  To “not only speak but listen” was one of our objectives and that could not be accomplished without the key ingredient of audience participation. A live platform Q&A session as well as live demonstrations (exhibition style) allowed everyone to engage, network and leave with a clear view of the depth of insight available (and with free avocados too).

With such good feedback, we are sure to hit the road again, same time, next year. See you then. If you missed out on the roadshow and would like to see a bit about the products we showcased, click here

Product review: eCompliance

eCompliance is an online compliance risk management system that aims to simplify the complexity and risk associated with managing internal transactional and regulatory requirements as well as the various onsite compliance requirements. 

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Our Covid-19 plans and updates

We are now well into the lockdown period to slow the spread of the virus. We hope you are coping, are safe and able to remain positive in these trying times.  The Lightstone team have been working hard to continue supporting your business. Below we outline the measures we have put in place: 

Here are some of the ways we can assist our clients, during the lockdown period:

  • Our Equity Mining product will be offered for free to dealers to assist with sales activities post the lockdown.

  • The LIVE product bundles that have not been fully used will be carried over to May. 

  • Our Signio training modules are all live and being well utilised, we encourage you to continue making use of these to firm up your knowledge on the Signio system. They are free and we are exploring how to offer certificates for each completed course.

  • Our MyEcho survey tool is available, with some great templates, for you to touch base with your clients. 

  • Watch this space for more information. 

Please do not hesitate to contact your key Lightstone account manager or Cindy Beets on cindybe@lightstone.co.za

In the news

A few quick links to help you stay in the loop:

Find out how your customers and employees are feeling about the COVID-19 epidemic with a quick survey. Sign up for our survey tool, MyEcho, and get 1-month free on our paid package.  

Sign up to MyEcho here

Thank you for reading our newsletter, we hope you found it valuable. Stay safe and we hope to see you soon. 

 

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