The new Ford Ranger. CMH, which owns Ford dealerships, says the carmaker saw a 18% fall in its market share over the past year, mainly due to supply problems.
This also has a negative impact on dealerships, says Combined Motor Holdings in its latest results announcement. South African are being forced to keep their cars due to longer-term loans and balloon payments – and when they can eventually trade in their vehicles for a newer model, dealers aren’t that keen to accept trade-ins.latest set of resultsCMH owns more than 70 dealerships for - among others - Ford, Nissan, Renault, Toyota, Honda, Jaguar, Land Rover, and Volvo vehicles.
Dealers are clearly not as keen to take on these trade-ins - which is bad news for South African car owners, who have come to rely on"trade-in" deals.“The lack of trade-ins has forced dealers to source inventory in the open market where retained margins are lower.”While car sales have fallen in South Africa over the past year, CMH saw a small increase of 1.9% in sales volumes.
Ford was left damaged by the Kuga engine fire crisis in 2017, which resulted in a recall of thousands of cars.
BISouthAfrica This is partially true, the challenge in trading in a vehicle especially when its fully paid, is that dealerships often value the car to be traded in far lower than its actually worth. Thus making it not worthy to trade in. Eg dealers offer R75k for a vehicle they sell for R160k