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.

How to Find Used cars That are Reliable and Won’t Break the Bank

Next to purchasing a house, buying a vehicle is probably the largest financial commitment you are likely to make. Because vehicles are so expensive, most people need financing. However, high-interest rates and a shaky economy could end up costing you more than you anticipated. Current trends indicate that purchasing an almost-new second-hand vehicle is your best bet if you are opting for finance, mainly because it is cheaper.

But where and how do you find used cars that are reliable, and will suit your lifestyle and your budget? Here are some tips from the experts:

·        Do your homework. The more you know about the market you are buying into, the better. Research prices online for the types of vehicles you are interested in. Many websites provide valuable insights into the vehicle market, and you can find used cars of any type and description on the web. Pay particular attention to the resale value of the vehicles, so that you can find used cars that will hold onto their value better for when you decide to resell again.

·        Apply for finance first. Most dealers of new and used cars will offer finance. These are sometimes more expensive than pre-financing because they might charge higher interest rates. Contact financial-services providers or banks first before you go out to find used cars and do some research on your best finance options. This gives you more buying power when you go looking for your ideal pre-owned vehicle.

·        Shop around. Take your time to find used cars that suit you well. Check out the prices for specific ages, add-ons, and other factors that may influence the price of the vehicle. The last thing you need is to purchase a vehicle on impulse without knowing how your deal compares with others.

·        Look at the total cost, not just monthly instalments. It is easy to get misled by the low monthly instalments but there might be a catch. Yes, you may pay a low monthly instalment, but you may also end up with a massive balloon payment to settle the rest of the debt at the end of the finance period. This usually means that you have to refinance to settle the balloon payment – possibly at a higher interest rate.

If you want to find reliable used cars at reasonable prices, give our team at Atterbury Motors a call. We have a great range of second-hand cars at very competitive prices. In addition, we can arrange finance for you.

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.