PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Motormanpete
 
Comments: 24
Article views: 2339
 
 
Latest Badges:

 
View all Motormanpete's badges.
 

Are cars in SA too pricey?

18 June 2014, 07:33
On the face of it, and certainly the emotional response will always be a resounding YES! But come on fellow South Africans, we can do better than that! Because while we seem expensive it may be because we are basing our opinions on misguided ramblings of people who have not done their research. Ya, ya, a Toyota Yaris costs less in some obscure country than in South Africa but when you have a look at the big picture, our cars are on balance, very competitively priced. Don’t believe me? Firstly let’s get rid of the “cars are so cheap in America” issue. Cars are cheap in America because they sell upwards of 20 million of them per year – its simple economies of scale. But have you looked at how much more cars cost in some European countries? Check out the pricing of the Mercedes-Benz A250 7 G-Tronic: South Africa: R450 900Portugal: Euro 42 700 (R619 150)France: Euro 36 300 (R526 350)Germany: Euro 38 437 (R557 336)UK: GBR 26 640 (R717 681) Cough, splutter – the Mercedes is cheaper in South Africa than even its parent home country!  Granted, this a small sample, but the point is clear. There are simply too many manufacturers present in the market for there to be room for much pricing abuse. With over 50 brands and thousands of models on offer - it’s way too competitive out there. All things aside, did you know that the 70th percentile benchmark dealers are lucky to achieve a 3% PBT? That makes the business very, very marginal and frankly I would invest my money somewhere else! So if you want to question whether we are getting ripped off, let’s have a look at a few other industries. Our cell phone calls are some of the most expensive in the world.And a litre of coke by the way costs more than a litre of petrol or a litre of beer. Why? Both the latter have far more complex processes and to add insult to injury, a litre of soda water costs the same as a coke!DSTV must rank as one of the bigger rip-offs. But then they do have an absolute monopoly so when they stop flighting movies on TV made this century and put all the good stuff on Box Office at extra cost – what can we do? But the ultimate problem does not lie with the pricing itself. The harsh reality is that all these products and services seem so expensive because we earn so little compared to Europe and the US.  So next time you question pricing in South Africa, don’t immediately jump to conclusions about everybody being a rip-off. It may be a case of confusing “expensive” with “can’t afford”….
Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.

 

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
24 comments
Comments have been closed for this article.

Read more from our Users

Submitted by
Leslie Fivaz
Two days in the week beyond our c...

There are two days in every week about which we should not worry, two days which should be kept free from fear and apprehension. Read more...

0 comments 14 views
Submitted by
John Mansfield
Let's set the CEO's salary failrl...

King III says that the CEO’s salary should be set ‘fairly’ and ‘responsibly’. King IV agrees with this and adds that it should be set ‘fairly’ and ‘responsibly’ in the context of overall employee remuneration.  Read more...

0 comments 12 views
Submitted by
MB2014
Don't show me the money, just sho...

Recently the news has become so depressing that I actually avoid news totally, I prefer to increase my ignorance level to a certain point then I check the news for something positive then alas – epic fail, the subscriber you have dialled is not available, klop.  Read more...

0 comments 3 views
Submitted by
ohomen171
50 Years Of The Magic Of Star Tre...

My dear friends the original Star Trek series premiers on Tuesday September 27, 1966. Its 50-year anniversary is rapidly approaching. Read more...

0 comments 3 views
Submitted by
Donald Madzinga
The rebirth of money

Remember when salaries used to come in an envelope handed over by the boss? Then all of a sudden you had to have a bank account for your salary to be paid into it... Read more...

0 comments 508 views
Submitted by
MikeHampton
Old Brown Sherry Thoughts on Zill...

I was feeling frustrated and trying to gather my thoughts. When i listened to the recording this morning, I was obviously talking to you as well. Read more...

0 comments 95 views
 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on Android Get the latest from News24 on your Android device.

SMS Alerts Get breaking news stories via SMS.

TV Get us in your home, on your television.

 
Interactive Advertising Bureau
 
© 2016 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.