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Second-hand car prices may collapse as rental car companies start dumping stock

4 June 2020 10:25 AM
Tags:
Car rental
Car
Motoring
Cars
Personal finance
Refilwe Moloto
secondhand cars
Breakfast with Refilwe Moloto
used car market
motoring journalist
Hertz
car rental companies
Lance Branquinho

Car rental firms may soon start flooding the second-hand car market at a time when demand is non-existent, says Lance Branquinho.

Travel for business or pleasure has come to a complete full stop in South Africa and much of the world.

The car rental sector is toast.

Picture credit: https://commons.wikimedia.org/wiki/User:Vauxford

Refilwe Moloto interviewed independent motoring journalist Lance Branquinho.

She asked about the likelihood that car hire companies will start offloading stock, and what the impact on the used car market will be if that happens.

The outlook is extremely negative… In America, Hertz - the world’s oldest rental car company - is filing for bankruptcy protection…

Lance Branquinho, independent motoring journalist

In South Africa, the lockdown has crushed the rental car market… there’s a huge incentive for these companies to not hold onto the cars for too long… potentially flood the second-hand car market at a time when demand is weak… a glut on the supply side…

Lance Branquinho, independent motoring journalist

In South Africa… the average lifecycle is for rental cars is between a year and two years. They get de-fleeted at about 30 or 40 or 50 000 kilometres…

Lance Branquinho, independent motoring journalist

As a buyer [of second-hand cars], you’re in a positive position… very big new car price increases [due to rand weakness] …

Lance Branquinho, independent motoring journalist

We’ve reached ‘Peak Car’. Production will have to be reduced… global supply must come down…

Lance Branquinho, independent motoring journalist

Listen to the interview in the audio below.


4 June 2020 10:25 AM
Tags:
Car rental
Car
Motoring
Cars
Personal finance
Refilwe Moloto
secondhand cars
Breakfast with Refilwe Moloto
used car market
motoring journalist
Hertz
car rental companies
Lance Branquinho

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