facebooktwitterlinkedinyoutube

“Cautious optimism” in used car market

“Cautious optimism” in used car market

There is reason for “cautious optimism” when it comes to the used car market in South Africa. That’s according to George Mienie, CEO of AutoTrader, who points to a number of positive trends in this sector of the automotive industry.

“Prices have begun to increase – albeit slightly – while cars are also selling faster than experienced earlier this year. Both of these factors bode well for the used car market,” he notes.

His statements are based on AutoTrader’s Used Car Rate of Sale (ROS) indicator, which has just been released for the period ending June 2020. As the largest digital automotive marketplace in South Africa, AutoTrader provides unparalleled insight into car-buying patterns in the country. ROS specifically provides an understanding of which cars South Africans are purchasing the fastest. 

According to this data, the fastest-selling used vehicle in South Africa at the end of June was the Volkswagen Polo Vivo, which took a mere 25 days to sell. “This confirms the popularity of the Volkswagen brand yet again; it was also the most sold brand last month,” notes Mienie.

Toyota was the second most sold brand last month and so it wasn’t surprising to see two vehicles from that manufacturer complete the podium positions. “The Fortuner was the second-fastest selling vehicle last month (26 days to sell), followed by the Hilux (26 days),” reveals Mienie.

AutoTrader’s Retail Price Index (RPI) shows a 1,2% increase in prices in June (month-on-month). The average selling price of a car for the month of June was R274 221. “This is a small increase, but it is positive news for retailers indeed. It also means that demand for used cars continues to rise” notes Mienie.

“Consumer propensity for increased spending albeit on used cars, is always a good thing for the automotive industry as a whole as we know the used car market is a much bigger market than new in South Africa,” he concludes.

Fastest selling used cars, June 2020*

Rank Make and Model Rate of Sale (days)
1 Volkswagen Polo Vivo 25 
2 Toyota Fortuner 26 
3 Toyota Hilux 26
4 Volkswagen Polo 26 
5 Nissan NP200 28 
6 Toyota Corolla Quest 29 
7 Volkswagen Golf 30 
8 BMW 3 Series 31 
9 Ford Ranger 32 
10 Ford Fiesta 32 
11 Audi A3 38 
12 Renault Kwid 40 
13 Ford EcoSport 42 
14 Kia Sportage 44 
15 Ford Figo 44 

*AutoTrader Rate of Sale (ROS) indicator.  Models that tied in days have been ranked by the lowest average individual time to sell a model.