McCarthy Limited, a division of The Bidvest Group, today announced that it has recorded its best used vehicle sales total ever.   Measured during the 12 month financial year period ending 30 June 2009, McCarthy retailed 44 824 used vehicles - a significant 6.4% increase on sales recorded during the previous year.

This achievement in a declining market positions McCarthy as the leading used vehicle retailer in South Africa.  According to McCarthy CEO, Brand Pretorius, the company's success can to a large extent be attributed to the strength of the McCarthy brand.

"McCarthy has been around for almost a hundred years.  As a result, the company enjoys a high level of trust, which I believe provides us with a strong competitive advantage, particularly during these tough times," said Pretorius.  "Our unique 'no risk' sales proposition that includes certified ownership, warranties and a seven-day exchange plan provides customers, who are currently very averse to risk, with the necessary peace of mind when they want to buy a used car."

McCarthy also benefited from the rationalisation which occurred in the national used vehicle dealer network.  It is estimated that more than 250 used vehicle outlets closed their doors over the last 18 months.

He added that McCarthy offers a wide selection of brands and models, with around 5 000 vehicles available for sale at any given point-in-time. 

Pretorius also attributed part of the success to the performance of Burchmores, the country's largest vehicle auctioneering company, and the impact of its unique "wholesale to the public offering".  During the 2008/9 financial year, Burchmores increased its off-the-floor retail sales by a substantial 65.3%, to 6 983 units. 

Call-a-Car, South Africa's leading electronic vehicle retailer, continued its success by lifting sales by 21% to a total of 5 792 units. 

"Most importantly, I am pleased to report a high customer satisfaction rating of  88.4%, which means that we are attracting many repeat customers through "word of mouth" recommendations," said Pretorius.  "Every customer is important to McCarthy and we are committed to offer all our customers high quality service, irrespective of the price, make or model of vehicle."

On the negative side, the company's new vehicle sales dropped by 31.6% to 30 290 units during the same 12 month period, much in line with the declining new vehicle sales experienced in the South African motor industry as a whole. 

During this most recent period, the company's new to used ratio was 0.67:1.0.  "When the new vehicle market was at its peak in 2006, the ratio was 1.43:1," said Pretorius.  "This dramatic change merely amplifies the pronounced swing from new to used vehicles which occurred over the last two years due to affordability pressure on consumers."

He said that it is clear that consumers responded very favourably to the compelling value proposition in the used vehicle market, which emanated from a widening gap between new and used prices. 

"I am very proud of our results, which were achieved through the hard work and dedication of our people.  This is the culmination of a focused strategy over the last five years to establish McCarthy as the leading retailer of used vehicles in South Africa," said Pretorius.  "I remain optimistic about the future prospects for the used car market."