SA Used Car Market Trends and Great Tips for Buying or Selling
The automotive landscape in South Africa is evolving rapidly as we move through 2024. We explore the latest trends influencing the South African car market, focusing on the impact of Chinese brands. Whether you’re looking to buy or sell, understanding these shifts is crucial for making informed decisions in today’s dynamic automotive environment.
From the growing appeal of used vehicles to the increasing market share of affordable Chinese models, we’ll provide you with the insights you need to navigate the current market successfully.
The Current State Of The Automotive Market
The overall automotive market in South Africa has faced challenges in recent years. In the first quarter of 2024, new vehicle sales declined 5.6% compared to the same period in 2023. This drop is attributed to various economic pressures, including high interest rates, rising fuel costs and broader economic difficulties.
Amid these economic challenges, many car buyers shifted their focus toward more affordable vehicles offering better value. This shift has created a significant opportunity for Chinese carmakers to thrive in South Africa.
As of September 2024, South African buyers have 27 Chinese car models to choose from! The share of Chinese brands in Standard Bank’s new car financing deals increased from just over 6% in 2022 to 7.4% in the first half of 2024. GWM Haval is currently the most popular Chinese brand financed by Standard Bank, followed by Chery and BAIC. It’s estimated that Chinese manufacturers will capture around 20% of the new car market in South Africa by the end of 2024.
The Used Car Market In 2024
The trend towards affordability is also reflected in the used car market. The proportion of used Chinese cars financed by Standard Bank rose from 20% in 2022 to 36% by July 2024. Used cars now account for 70% of Standard Bank’s vehicle finance deals, underscoring the shift toward more affordable options.
Top-Selling Chinese Brands
Haval has made significant strides, selling approximately 19,904 units by mid-2024, up from just 872 units in 2019. Chery is expected to report similarly impressive numbers. Other notable brands making their mark include BAIC, GWM, JAECOO, and OMODA.
Tips For Buying A Used Car In 2024
- Consider Chinese Brands: With their growing popularity and improving reputation, Chinese cars could offer good value in the used market.
- Research Thoroughly: Use resources like the Group1 Search. Find. Buy. tool to compare used car prices and specifications across various brands and models.
- Check The Vehicle’s History: This is especially important for newer brands in the market.
- Test Drive: Always take the car for a test drive to assess its condition and performance.
- Negotiate: The competitive market, especially with the influx of Chinese brands, may provide more room for negotiation.
Tips For Selling Your Used Car In 2024
- Price Competitively: With more affordable options entering the market, ensure your asking price is competitive.
- Highlight Value: Emphasise the value proposition of your car, especially if it’s a more established brand.
- Provide Documentation: Have all service records and relevant paperwork ready for potential buyers.
- Be Honest: Disclose any issues with the car to build trust with potential buyers.
- Consider Timing: The market can fluctuate throughout the year, so consider timing your sale for maximum value.
Looking Ahead
As the South African automotive market continues to evolve, we can expect to see further growth in the popularity of Chinese brands in both new and used car segments. However, established brands still hold a significant market share and consumer trust.
Whether you’re buying or selling, staying informed about market trends and following best practices can help you navigate the increasingly diverse used car market successfully in 2024.
