Used car sales could boom in months ahead
While used car sales in SA during last month mimicked new car sales and were understandably down last year, consumers are demonstrating increasing interest in buying a used car.
More than 17,000 used cars were sold on AutoTrader in last month vs more than 36,000 in the same month last year, a decline of 52.11%.
However, a total of 37,7 million vehicle searches took place in last month vs 25,1 million in the same month in 2019 — a substantial increase of 49,78%.
“We have to remember that trading resumed halfway through the month and that licensing departments remain closed, so the sales figures are quite encouraging given the circumstances,” AutoTrader CEO George Mienie said.
“The search results indicate pent-up demand, which is great for the economy and could indicate a return to normal.”
As the country’s largest motoring marketplace, car searches and sales via AutoTrader have long been regarded as an accurate barometer of consumer buying patterns.
The cumulative value of used car sales this year shows a dramatic, but understandable, decline compared to last year.
A cumulative selling price of R4,8bn was recorded this year on a year-to-date basis, vs R10,2bn over the same period last year.
The Ford Ranger was again the most sold used car last month, but the two other podium positions changed completely when compared to April.
The Kia Sportage and Jeep Wrangler (number two and three in April) were replaced by the Volkswagen Polo and Toyota Hilux.
“This is interesting to see [as] this indicates the market is normalising.
“The Polo and Hilux are perennially popular,” Mienie said.
In a similar vein, the vehicle in the number four spot in April, the Kia Picanto, was replaced by the Volkswagen Polo Vivo last month.
“This is what we have come to expect from used car buyers.
“The Polo Vivo is always a top performer in the used car market.”
Mienie said Gauteng was the most active province during May, accounting for 61% of the total used car market share in SA.
The Ranger reigned supreme in this province, with more than 10,000 sales last year. —