Used-car market value climbs 3.8% to more than R100bn

11th September 2020 By: Irma Venter - Creamer Media Senior Deputy Editor

AutoTrader’s new yearly used-car industry report, launched in August, shows that South Africans used the country’s largest digital used-car trading portal to conduct 401-million online searches from July last year to the end of June this year.

This is an all-time record and an almost 40% increase year-on-year.

The biggest search demographics were men (65%), and people aged between 25 and 34 (35%).

CEO George Mienie says AutoTrader is responsible for more than 80% of used-car sales in South Africa, which is why the ‘AutoTrader Car Industry Report’ is able to detail trends and insights into the South African used-car market.

He says the report is especially useful during turbulent trading conditions, as the data helps dealers to acquire stock in the right price bands that also meets consumer demand.

“It goes without saying that 2020 has probably been one of the most challenging years in the history of the automotive business.”

Given the circumstances around Covid-19, the used-car market experienced an 11.9% drop in sales during the period under review. Before the lockdown, it was on track for a 9% increase in sales.

Despite this, the cumulative South African used-car market was valued at about R100-billion, which is a 3.8% increase on the year before.

Used-car retail price inflation was less than 1% in the period under review.

The average mileage of cars sold on AutoTrader was 74 923 km, with the average price being R289 312, an increase of R9 003 (3%) over the previous year.

The most searched for price point was under R200 000.

The average year model of cars sold was 2014.

The most for searched brands were BMW, at number one, followed by Mercedes-Benz and Volkswagen.These three brands captured 33% of all searches.

The top three most searched for models were the Toyota Hilux, at number one, followed by the Volkswagen Golf and the Mercedes-Benz C-Class.

The most sold car was the Ford Ranger bakkie, contributing 4.7% of all cars sold, at an average mileage of 85 948 km and an average year model of 2016.

In the previous year, the Ford Ranger was the third-most-sold car, with an average price of R288 990, an average mileage of 88 835 km, and an average year model of 2015.

In second place for the year ending June 2020 was the Volkswagen Polo, the former number one, followed by the Toyota Hilux.

The most searched for variant was the Volkswagen Golf GTI, followed by the Polo GTI and the Mercedes-Benz C-Class C63 AMG.

The most searched for colour was white, followed by silver, grey, black and blue.