Surprising Market Predictions on Cars for Sale in South Africa for 2020

It seems that South Africa is currently riding a wave in the retail space for motor vehicles. Market predictions are quite bullish for the coming years, and especially for 2020. Because the vehicle industry specifically has been affected by the economic downturn and the rise in petrol prices and interest rates, the sales of new vehicles have been on a steady decline over the past three years.

But it seems as if the time has come for an uptick in the vehicle market. There is still, however, quite a large difference between the number of new cars for sale and second-hand models. Lately, the used-car market has overtaken the sales figures of new cars but this does not mean that consumers have lost their appetite for new vehicles. It is just the composition of the market that has undergone a slight adjustment.

Because of the economic downturn, the increase in petrol and diesel prices, and more stringent financing requirements, fewer people have been in a position to purchase luxury vehicles and sports cars too. The prices of new vehicles have seen a slight reduction in 2018 and as a result, used cars have also become less costly to purchase. Because the performance of the South African rand has been less than stellar over the past two years, fewer new vehicles were sold. This means that the number of used cars available for sale has increased.

One of the noteworthy changes is that people are now looking for newer second-hand vehicles for sale. This means that they can now buy a slightly used SUV or pickup for less than R200 000. Often, these are demo vehicles because these models are virtually new. What also happened in the meantime is that the resale values of various models have been on the increase.

The slight reduction in the prices of new luxury vehicles in 2018, however, has been reversed again in 2019, which has somewhat constrained people’s buying power and made them more conservative in terms of the financial risks they are willing to take. The fact is that for the moment, people will rather spend less money on cars.

At Atterbury Motors, we are at the forefront of the pre-owned motoring market. We have our eye firmly on the financial market and how this affects the prices of the cars we offer for sale. Be that as it may, Atterbury Motors will always offer you a great deal. Give us a call to find out more.