/ 7 January 2004

New car sales on the rise

New car sales for 2003 are expected to rise by 5%, a banking group reported on Wednesday.

Old Mutual Bank manager Ben Stander said sales are expected to continue growing in 2004. He said lower interest rates and increased advertising are among the causes for the growth.

Stander said car-buyers are finding it difficult to choose from middle-market brands as differences in prices and quality are ”blurring”.

The standard of service that finance companies offer will be ”under the spotlight in 2004”, said Stander.

”Buying a car is the second-biggest investment many people will make, after their house, and should be considered as part of a personal financial plan,” he said.

Stander also said Old Mutual is trying to make buying a vehicle simple by removing unnecessary ”complications” and bureaucracies.

”We aim to help customers select the vehicle and finance option that best suits their needs and their pockets,” he added. — Sapa