Unlocking opportunities for car dealerships
Right now, seismic challenges and changes are happening inside SA’s car dealerships. South Africa’s automotive and transport sectors are the primary engine behind human mobility in SA. It’s an enabling sector, driving employment and keeping South Africans moving. However, they are taking all the bumps in the road head-on right now.
In a market anticipated to shift in favour of buyers, dealerships offering more affordable brands and models will likely capture the bulk of sales in 2024. Amidst the threat of global recession and rising fuel, transport, and living costs, individuals and families are looking to downgrade to smaller, more fuel-efficient vehicles. With escalating public transport costs, we may see a spate of first-time buyers entering the vehicle market.
Though sales of electric vehicles (EVs) will continue to rise in SA, hybrid vehicles are predicted to account for the lion’s share of sales in the first half of the decade, with full EVs expected to follow suit towards 2030, especially if our current power woes are successfully addressed. Still, the big pressure lives in floor planning and the financing of stock.
There is, however, light ahead. S A’s car manufacturers stand to grow their business streams in 2024 by tapping into emergent shifts and trends in commercial, industrial, and technological spheres and acting at the right time. And…car dealerships can strive to retain high-quality service commitments, consumer value, and choice.
Opportunities not to miss out on:
- Vehicles are so expensive! Stocking up and cleaning stock costs a lot! Take advantage of financing for your dealership to ensure your cash is constantly flowing when you need to order.
- Invest in EVs. If you’re not already there, it’s time to consider this move. More and more consumers are looking to save on fuel costs and support our changing environment. Support your customers’ needs and invest in hybrid or EV stock options they will need now and in the future.
- Manage your floor plan inventory, equipment, diagnostic tools, and dealer management systems easily and flexibly. This will feel impossible without capital to support your needs, so it may serve you and your business to engage with a revolving capital facility to support your needs.
- Create offers your market can’t refuse. In times of need, consumers will be looking for a solution. A reliable line of business capital will help you manage unexpected costs and stay ahead of shifting consumer trends.
- Getting organised with Subscription-based offerings, or MaaS will be a growing trend. If consumer affordability can be mitigated, more cars will be sold. 2024 could be the year this becomes a reality for car dealerships.
- Upgrade your dealership system to work for you! Tech is pricey, but time is money. Having a credit facility, you can tap into when you need it can help you navigate the expense and inject your business positively.
Despite many opportunities, the automotive industry will face considerable hurdles in 2024 – the ongoing energy crisis, supply chain disruptions, and less money in people’s pockets – to name but a few. Car dealerships will need business capital to successfully navigate these obstacles and ensure growth and success in 2024.
Financing with Lula
Lula’s business capital solutions are quick, convenient, and fully online paperless applications with flexible repayment terms, full transparency, and no hidden fees. With Lula, you can easily access up to R5M of working capital without the need for any collateral.
Lula’s online application process is hassle-free, and you can get approval within hours. After approval, your funds are deposited directly into your bank account, and with a Lula business bank account, it can be done in as little as 2 hours.
Lula’s repayment terms are flexible, so you can choose the repayment term that best suits your cash flow. And with full transparency, you can be assured that there are no hidden fees or charges.
Lula provides a reliable and streamlined process for car dealerships to access the capital they need to grow their business.
With a vision to assist SA’s entrepreneurs in growing our economy and providing jobs for our people, Lula is a trusted business credit partner, supporting car dealerships with the flexible cash injections they need to innovate and take advantage of opportunities. Find out more here.
