There is a lot of turbulence in the used vehicle market, and a wrong purchase can end up costing a dealership dearly.
Share with friends
Dealerfloor
spoke to Emile Streicher of Bakkie World in Klerksdorp about his reading of the used vehicle market, especially at a dealership that focuses mainly on South Africans’ preferred way of transport – bakkies.
“It is a fine art to find the right product at the right price, especially bakkies that are in constant demand. The circumstances with lockdown and the subsequent stock shortages had us shifting our focus away from ‘only bakkies’, and we are now selling any kind of vehicle for the foreseeable future.
“The lockdown has seen used stock dry up, especially after some factories had to close and have since been slow to supply parts and fully built-up vehicles. This has seen the price of used vehicles shoot up, with some dealers paying more than retail for their used stock.
“It creates all sorts of problems making used cars very expensive, eating away at profitability and forcing salespeople to stretch finance options to make a deal happen. The uncertainty around when the situation will stabilise may have caught some dealers of guard. It could leave them with expensive stock that will be more difficult to move,” says Emile.
Emile reckons normality is still months away, with some sense of normality only expected in 2022.
“Any other crisis limiting stock will have serious consequences. We are however thankful and optimistic about business, and local conditions in North West seem to be heading in the right direction.”
“At this stage, our bakkie ratio to other vehicles does not reflect our name, but like I mentioned early on, we have to do what it takes to make business work. These days you have to run your used vehicle dealership like a tight ship. At Bakkie World we have a total staff complement of eight people and everyone helps where help is needed.
“We are now in our ninth year of business and it took hard work to build up a business through all its highs and lows. Arriving at work at 7 am and only locking up after 7 pm is nothing new to me. Our motto is ‘enter as a stranger, leave as a friend’. The truth of this motto is, do everything to retain customers. Each transaction counts, and client satisfaction and customer service will lead to repeat business,” Emile tells Dealerfloor.
Asked about the original intention of focusing on bakkies, Emile says South Africans’ love affair with bakkies is for everyone to see. “Bakkies’ popularity has been on the rise for years now. Our road conditions are a sure contributing factor as well as the practicality and the outdoor lifestyle. The same goes for SUVs that have replaced the traditional family sedan, according to him.”
“Hopefully not too long before we can put the bakkie back into Bakkie World, in the meantime we soldier on,” he concluded.
Bakkie World is part of the Highway Motor Group in Klerksdorp with, amongst others, two Highway Motors dealerships, all located in different parts of North West. The Highway Motor Group has won the Wesbank Top 40 Award several times.
The 17 finalists for the 2025 Car of the Year (COTY) competition have been announced, and they will soon undergo an intense three-day evaluation process to test their capabilities.
UD Trucks Southern Africa’s (UDTSA) historic founding dates back in 1962, and this year marks 90 years of the brand’s existence globally. This significant milestone reflects the brand’s legacy locally as one of the leading brands in the commercial vehicle industry with trucks produced at its assembly plant in Rosslyn, Pretoria.
Mitsubishi Motors South Africa is expanding its compact SUV offering with the introduction of the all-new Outlander Sport. This is the first of more product launches for the brand locally this year.
New Year is over, but there were extended celebrations in the Cape after Hyundai N1 City was awarded the 2024 Dealer of the Year prize at Hyundai Automotive South Africa’s annual dealer conference at Sun City.
With more than two decades of experience in the automotive retail sector and 11 years in the banking sector, Riyaaz Slarmie, Dealer Principal at GWM and BYD in Woodmead, is a go-getter driven by a genuine passion for people and success.
A star is born, and he is in the Foton stable of CMH’s Randburg dealership. His name is Wayne Bull, big in stature, soft spoken with a passion for customers and his product.