Where are the buyers?: Car dealers feel the pinch of liquidity crunch, direct imports Car sales are no longer the hive of activity they used to be
Car sales are no longer the hive of activity they used to be

Car sales are no longer the hive of activity they used to be

Lovemore Meya Features Writer
The introduction of the multi-currency regime in Zimbabwe a few years ago opened a new chapter of consumerism as people, fresh from a hyperinflationary hell, started saving to buy cars, houses and about everything they could lay their hands on.

Car sales sprouted all over the country and in Harare, the growth was phenomenal.

However, the bubble has apparently burst.

Car sales are no longer the hive of activity they were and, one side, the supply side, is increasing while demand is falling, and falling.

The result: a fatal pile-up for car dealers.

A visit to various car sales across Harare revealed the slow business being experienced as consumers grapple to save the US$1 in their pocket.

According to a salesman at Bringbook Car Sales along Seke Road, business has nosedived in recent months.

“Let me highlight to you that our operations are different from other cars sales in town for the people we house here specialise on recent imports. There are some who specialise in buying from people in dire need of cash while others do swap and top-up deals only,” he said.

He said business was no longer what it used to be in previous years.

“Last year, business was good because selling a car was never a problem with some people changing them inside three weeks. Trends are now different since we have a market that comes with tobacco farmers and the type of cars they buy are not for business but for family use,” he said.

He said some people took the tobacco selling season as an opportunity to bring in their cars for bargaining.

“Now we know that there are three seasons when people sell cars: during the tobacco season, January disease when people get rid of their cars to pay school fees and the festive seasons. At least US$1 500 is the average amount that one can get a car from this place,” he said.

However, people are failing to pay rentals due to the liquidity crunch and selling a car like they used to do is now different.

Mr Tichaona Mushokori, who sells cars on commission, said business was tight.

“Business is on a downward trend. You can make a profit of about US$400 to US$500 per car unlike in the good old days when we could fetch as much as US$1 000. This business is no longer viable because we are experiencing a liquidity crunch,” he said.

He also said direct vehicle purchases from Japan had dealt them a heavy blow.

“People are going straight to the source. Googling on a cellphone can be better than moving around car sales. The next thing they send money through the wire and within five weeks they get their car,” he said.

Mr Mushokori said this route was cheaper, hence it was affecting the local market.

“Last year we used to sell a car within a period of two weeks to a month but this time it is difficult and we can go as long as three months without a sale,” he said.

Another car sales situated adjacent to ZBC Mbare studios along Simon Mazorodze Road has been receiving a handful of customers.

On a visit to the site, one is greeted by modern immaculate vehicles. Sunny, Toyota Vitz, Honda, Audi, Mazda are some of the brands on sale.

Ronald Mabika, an airtime vendor plying his trade near the car sale, said the car sale belonged to a number of dealers.

“This car sale is operated by a number of people and they are making a lot of cash judging by the way they conduct their business. It is a simple way of earning a living in the country,” he said.

He said both the employers and their employees were some of his customers.

“I love plying my trade here because I can get many customers from commuters to car sales operators. Seventy percent of my clients are commuters while the car sales owners and their employees make up the remainder. During the tobacco selling season, I earn more since farmers will be flooding the floors,” he said.

Mabika said the sanctions imposed on the country had led people to earn a living through unorthodox means. “Economic sanctions have destroyed the economy. As a result, people are employing unorthodox means to survive. Tobacco farmers are being duped every selling season to buy cars at inflated prices or with a lot of mechanical problems,” he said.

An immaculately dressed young man in his 30s who preferred anonymity and is in a partnership with his brother, said they were making a living from selling vehicles.

“I have been operating this car sale for the past 15 years with my brother and we import our cars from Japan. The deals depend on how people want to have a car. We buy them in our names and on selling them, we change ownership after a customer buys one,” he said.

He said there were many ways of conducting their business and everyone was a potential customer.

“Our operations are flexible. One can buy a car from us or get it from Durban or Messina in SA and we can bring it home for them,” he said.

“We have been operating here for a long time. We applied for a licence from Harare City Council last year to legalise our operations but to no avail. That is why we cannot erect a fence around this place,” he added.

He said they could sell two or more cars depending on the value and model.

Another dealer, Chamunorwa Nzara of Chitungwiza who specialises in 1,6-tonne trucks, said business was brisk. His vehicles range from US$5 500 to US$5 800 and US$6 000 for petrol and diesel respectively.

“Business is brisk here though at times we go for days without selling a car. If you want to buy it here it is a bit expensive than getting it from Messina,” he said.

Prices of vehicles vary according to the model, appearance and whether it is deformed or has mechanical faults.

Nzara says: “The average price for a car offered here is US$4 500. A Nissan Vanity Kombi is selling for US$11 000 and it is wise sometimes for one to employ the services of an agent on clearing them or get it on your own because some have fixed duties.”

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