While new car passenger sales appear to be quite volatile, with July seeing a -9.7% decrease¹, the used car market in South Africa continues to show strong growth.
According to used car sales data supplied by AutoTrader, the used car market in July grew by 8% month-on-month. In a similar vein, the accumulative value of used car sales in July rose from R12,0 billion in 2022 to R12,9 billion in 2023 – or an increase of 7.8% year-on-year.
In comparison, according to figures released by Naamsa, the Automotive Business Council, the July 2023 new passenger car market – at 27,839 units – registered a decline of 6,6% over June 2023. Used car sales exceeded total new passenger car sales last month, with 32,090 used cars being sold in South Africa in July 2023.
According to naamsa , the top-selling new passenger cars in South Africa last month were the Volkswagen Polo Vivo, Suzuki Swift and Corolla Cross. In contrast, AutoTrader Used Cars Sales data shows the top-selling used cars last month were the Volkswagen Polo, Volkswagen Polo Vivo and Toyota Fortuner.
The average value of new cars financed through WesBank increased from R354,236 in July 2022 to R400,714 in July 2023.
By comparison, AutoTrader data shows the average value of used cars sold increased from R387,427 in July 2022 to R403,003 in July 2023. The average mileage of used cars sold in July 2022 was 81,575km and the average year of registration was 2017. In July 2023, this changed to 73 271km and 2018 respectively.
While used average listing prices have risen year-on-year, they have declined month-on-month. The average listed price of used cars sold in June 2023 was R406,474 (the average mileage was 75,905km while the average year of registration was 2018).
George Mienie, AutoTrader CEO, reveals that – while Toyota maintained its number one slot in terms of most used cars sold – Renault had an exceptionally good month in July. “Renault gained three places in July – moving to spot number nine and making the company the OEM with one of the biggest gains in the used car market,” he notes.
Sources: Naamsa, AutoTrader