MAY 2008 Belonging Is Better Business Belonging Is Better Business

MAY 2008 Belonging Is Better Business Belonging Is Better Business

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Passenger Car Market Actual vs Trend New Car Market

Trend Cycle

41000

36000

Market

31000

26000

21000

16000

Jan-09

Jan-08

Jan-07

Jan-06

Jan-05

Jan-04

Jan-03

Jan-02

Jan-01

Jan-00

Jan-99

Jan-98

Jan-97

Jan-96

Jan-95

Jan-94

Jan-93

Jan-92

Jan-91

Jan-90

11000

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Passenger Dealer Market Actual vs Trend DLRMKT

Y/Y Change in the New Car Sales Cycle

TCDLRMKT

35000

40

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20

Jan-08

Jan-07

Jan-06

Jan-05

Jan-04

Jan-03

Jan-02

Jan-01

Jan-00

Jan-99

Jan-98

Jan-97

Jan-96

Jan-95

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10000

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Sep-08

Jan-08

May-08

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Jan-07

Sep-06

May-07

Jan-06

May-06

Sep-05

Jan-05

May-05

Sep-04

Jan-04

May-04

Sep-03

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May-03

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New Car Pricing vs Used Car Pricing vs CPI (Jan 2001 = 100)

+

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160

New Car Pr Index Jan 2001 = 100 150

The April NAAMSA sales results for Light Commercial Vehicles have shown a small decline of -1.61 % (Incl. AMH) Year on Year. This segment is starting to follow the same trend as the passenger car although the % shift is a lot smaller than the shift in March 2008. The medium and the heavy commercial market continue with a positive growth with medium vehicles showing a 17.9% growth and the heavy vehicles showing a 20.2% against the same period last year.

Used Car Pr Index Jan 2001 = 100 CPI Jan 2001 = 100

140

Index

130

120

110

100

For the first time this year we have also seen a bigger depreciation decline on commercial vehicles as we now can see that the current market offers of 2008 models are starting to push back the current strong positions of the previous year models.

Jan-08

May-08

Sep-08

Jan-07

May-07

Sep-07

Jan-06

May-06

Sep-06

Jan-05

May-05

Sep-05

Sep-04

Jan-04

May-04

Sep-03

Jan-03

May-03

Jan-02

May-02

Sep-02

May-01

Sep-01

Jan-01

90

Light Commercials: As per the markets further movement into the current year we have seen that there are a building of softer values as both demand and weaker market factors are influencing all current light commercial vehicles.

=

-

Medium Commercials: As seen through the last couple months returns, although still strong market conditions for mediums we are starting to see lower values as we progress through to the 3Q of the year. Heavy Commercials: The heavy commercial market are showing some strength on the lower end horsepower vehicles as they are more or less in the same competitive market conditions as the medium commercial vehicles. The bigger horsepower vehicles specifically Truck Tractors are starting to show some depreciation as the competitive pricing on new units are forcing some softness to come through on the older vehicles. The ‘new look’ dealer returns forms have now been sent out. Please take the time to complete the forms on a monthly basis as the more accurate data we receive via these forms the more representative the guide will be of what is happening in the motor industry. If you have not yet received your forms for completion or if you have any queries relating to your dealer returns submissions please contact us on +27 11 428 2000. Alternatively e-mail [email protected] FIFTH WHEEL The April NAAMSA sales results for Light Commercial Vehicles have shown a small decline of -1.61 % (Incl. AMH) Year on Year. This segment is starting to follow the same trend as the passenger car although the % shift is a lot smaller than the shift in March 2008. The medium and the heavy commercial market continue with a positive growth with medium vehicles showing a 17.9% growth and the heavy vehicles showing a 20.2% against the same period last year. For the first time this year we have also seen a bigger depreciation decline on commercial vehicles as we now can see that the current market offers of 2008 models are starting to push back the current strong positions of the previous year models.

#

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Medium Commercials: As seen through the last couple months returns, although still strong market conditions for mediums we are starting to see lower values as we progress through to the 3Q of the year.

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The ‘new look’ dealer returns forms have now been sent out. Please take the time to complete the forms on a monthly basis as the more accurate data we receive via these forms the more representative the guide will be of what is happening in the motor industry. If you have not yet received your forms for completion or if you have any queries relating to your dealer returns submissions please contact us on +27 11 428 2000. Alternatively e-mail [email protected]

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Heavy Commercials: The heavy commercial market are showing some strength on the lower end horsepower vehicles as they are more or less in the same competitive market conditions as the medium commercial vehicles. The bigger horsepower vehicles specifically Truck Tractors are starting to show some depreciation as the competitive pricing on new units are forcing some softness to come through on the older vehicles.

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Light Commercials: As per the markets further movement into the current year we have seen that there are a building of softer values as both demand and weaker market factors are influencing all current light commercial vehicles.

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* AFFAIR For several years, a man was having an affair with an Italian woman.

6,26 3 ' ? (

One night, she confided in him that she was pregnant. Not wanting to ruin his reputation or his marriage, He would pay her a large sum of money if she would go to Italy to secretly have the child. If she stayed in Italy to raise the child, he would also provide child support until the child turned 18.

$

• • • • • • • • • • • • • •

She agreed, but asked how he would know when the baby was born. To keep it discreet, he told her to simply mail him a post card, and write "Spaghetti" on the back. He would then arrange for the child support payments to begin. One day, about 9 months later, he came home to his confused wife. "Honey," she said, "you received a very strange post card today."

,

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"Oh, just give it to me and I' ll explain it later," he said. The wife obeyed and watched as her husband read the card, turned white, and fainted. On the card was written: "Spaghetti, Spaghetti, Spaghetti, Spaghetti, Spaghetti. Three with meatballs, two without. Send extra sauce. oo 0 oo CYANIDE A nice, calm and respectable lady went into the pharmacy, walked up to the pharmacist, looked straight into his eyes, and said, "I would like to buy some cyanide."

Should you have queries in this regard, please contact you’re nearest Regional Office at the telephone numbers, which appears below.

The pharmacist asked, "Why in the world do you need cyanide?"

*

The lady replied, "I need it to poison my husband." The pharmacist' s eyes got big and he exclaimed, "Lord have mercy! I can' t give you cyanide to kill your husband. That' s against the law!

The lady reached into her purse and pulled out a picture of her husband in bed with the pharmacist' s wife.

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I' ll lose my license! They' ll throw both of us in jail! All kinds of bad things will happen. Absolutely not! You CANNOT have any cyanide!"

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The pharmacist looked at the picture and replied, "Well now, that' s different. You didn't tell me you had a prescription."

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RMI

What insurance products are available? ** ,

Material Damage and Business Interruption Policy This policy will provide a competitive Basic Package to cover your Assets against loss or damage resulting from Fire and Perils, as well as cover for Business Interruption following such loss or damage.

( *

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- $

The Basic Package includes: -

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Glass Money Theft Fidelity Guarantee Increase Cost of Working Accidental Damage Employers Liability Excess per Claim:

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(*

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In addition to these basic covers, all the physical Assets of the Business will need to be declared. These will be covered at competitive terms, subject to an acceptable claims experience.

* *

( *

Public Liability includes Defective Workmanship and Products Liability (Compulsory)

(

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(*

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This programme has been packaged to provide covers essential in the Retail Motor Industry. This programme ensures that there is realistic cover for a wide range of legal liabilities that you may incur in the operation of your business. Public Liability Defective Workmanship Products Liability Motor traders Liability Wrongful Advices / Errors & omissions Excess per claim:

* *

* ( *

R 20 000 R 20 000 R 50 000 R 50 000 R 250 000 R 10 000 R1 000 000 R 2 000

R R R R R R

5 000 000 5 000 000 5 000 000 2 500 000 1 500 000 2 500

Motor Traders (Internal & External) Cover is available for physical damage to vehicles operated by members in the course of their business operation.

Fuel Guarantee Facility

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This provides access to all RMI members who are required to provide the Fuel Companies with financial guarantee. The fuel guarantee facility provides a cost effective alternative to bank guarantees freeing up existing capital in the business.

> % (

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Amatuktuk Ficksburg Auto cc Fleet Wise Truck & Trailer Repairs Fury Fourways Lindsay Saker GWM Kokstad Cars Limited # C . 9

Roadside Assistance

%

Provision of roadside Assistance is available to cover all participating RMI clients.

What about your existing insurance broker arrangements?

Knysna Fiksburg Port Elizabeth Randburg Johannesburg Kokstad Milnerton

&$ 0 ) *' + " 3"3 88 +J . .I ( $ .' J . .I .

) ) !! $

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The facility has been structured to provide maximum benefit to RMI members at competitive prices, RMI acknowledge that existing relationships are maintained where possible.

How will you benefit? • • • • • • •

9B B

You will receive wider cover at competitive premiums. Future stability of premiums. Potential future shares in underwriting profits. Financial protection in the event of a loss. Participating in self-insurance structures. Additional value added services to be introduces. Fast track claims settled within 48 hours.

For more information please contact: *

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Facsimile: Mailto:Website:-

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Website:RMI 4 Sure Care line:-

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Retail Motor Industry Organization

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www.rmi4sure.co.za 011 669 3456 or 011 669 3148 011 669 2240 [email protected] www.cre8sa.co.za

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Contact person :Telephone:Facsimile:Mailto:Website:-

Claire Patterson

011 78 92 542 011 88 66 719 [email protected] www.rmi.org.za www.rmionline.co.za

The above is administered by Cre8 in association with Alexander Forbes (Registration Number: - 1997/022552/07)

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John Hempel

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