Trends in Used Cars for Sale in South Africa in 2019

After a years-long decline in the number of new vehicles retailed in South Africa, the market seems to be gradually picking up again. Because of the low figures, some vehicle manufacturers have reduced the prices of their new vehicles in 2018. Of course, there is a great number of used cars on the market as people exchange their cars for new ones. Because new vehicles became a little cheaper, this has also affected the prices of used cars. TransUnion South Africa states that overall, prices of new and used cars have decreased by around 2,5% overall by July 2018.

Certain trends are set to continue, but the market and vehicle prices are also dependent on our currency’s performance. Indications are that for every one new vehicle that is financed by banks or other financial institutions, 2,5 used vehicles are financed. Interestingly enough, most of the vehicles that were financed at the time of the study cost under R200 000. This means that sports and luxury vehicle sales have declined rather than increased, but new vehicle sales are expected to see a steady increase again, albeit gradually, throughout 2020. There is also a renewed demand for new and second-hand SUVs and these cars are typically financed for under R200 000. Only 36% of vehicles of a price range above R300 000 were finance deals.

Another trend mentioned by TransUnion is that people are opting for newer pre-owned vehicles. Because their prices have gone down a little, it is now easier to obtain recent-model used cars for sale at lower prices. This trend is also set to continue throughout 2020. Consumers are more confident purchasing newer used vehicles because these tend to be less problematic than older ones. In fact, TransUnion’s Q1 report indicates that 46% of used vehicles bought were less than two years old and that a number of these were ex-demonstration models, which makes them virtually new. Used vehicles offer better value for money and also better resale values.

Despite the increase in the sales of second-hand cars, financial institutions do, however, warn consumers to keep a beady eye on their budget spends, as the performance of the rand, frequent increases in the fuel price, and the somewhat volatile economy can cause a dramatic turn in interest rates at any time. This means that financed vehicles will become more expensive in the process. It is, therefore, vital to ensure that your credit status is healthy and that you can make provision in case interest rates go up. Consumers are also advised to only consider used cars for sale that are somewhat below their maximum budget to keep costs down in case there is an upswing in interest rates.

If you are one of the consumers looking for newer, high-value second-hand vehicles to purchase, speak to our team at Atterbury Motors. We handpick the vehicles we resell and have a wide range of vehicles that will suit most budgets. We can also help you to apply for finance for your vehicle. Give us a call today or pop into our showroom in Pretoria for more information.