South Africa’s used car prices are stabilizing after pandemic-driven price hikes. Learn how the market is adjusting and what it means for buyers in 2024.
Used Car Prices in South Africa Stabilize, Offering Better Deals
The South African used car market is gradually returning to pre-pandemic pricing, offering more affordable options for prospective buyers. Recent reports suggest that used car prices are stabilizing, providing much-needed relief after several years of inflated costs. A comprehensive analysis by getWorth, tracking prices from 2019 to 2024, shows how the prices of second-hand vehicles have fluctuated in response to market disruptions caused by the Covid-19 pandemic. After a sharp rise in prices due to supply chain issues, the market is now adjusting and bringing used car prices back to more manageable levels.
The Recovery in New Car Production and Its Effect on Used Car Prices
As global supply chains began to recover and new car production ramped up, the automotive industry started to address the backlog caused by the pandemic. By 2023, new vehicle production began to stabilize, leading to more options for consumers. As more new cars became available, the demand for used vehicles began to drop, and used car prices started to decrease.
The return of new car production has provided consumers with more purchasing options, easing the pressure on the second-hand market. As a result, used car prices are now starting to return to pre-pandemic levels, offering buyers more affordable choices. Although the market has not completely returned to normal, the correction in pricing is a welcome shift after years of inflated costs.
Market Trends for 2024 and Beyond
Looking ahead, the South African used car market is expected to stabilize further, with used car prices continuing to return to reasonable levels. The demand for affordable vehicles, particularly those priced under R250,000, remains high. However, prices in this segment have been dropping at a slower rate than their more expensive counterparts. This reflects the ongoing high demand for budget-friendly options, which continues to outpace the rest of the market.
Is Now the Right Time to Buy a Used Car?
For those who have been waiting for the right time to buy a used car, now could be the perfect opportunity. With used car prices stabilizing and many models becoming more affordable, buyers have more leverage in the market. Whether you’re looking for a family sedan or a budget-friendly compact car, the current market conditions offer more affordable options than in recent years.
While prices for used cars in the lower price brackets are dropping slower than higher-end models, there is still considerable room for savings compared to the peak prices of 2021 and 2022. As the market continues to recover, buyers can expect even more competitive pricing in the coming months.
Make the Most of the Market Shift—Start Shopping Now!
If you’ve been holding off on purchasing a used car, now may be your best chance. With used car prices stabilizing, it’s time to find a quality second-hand vehicle at a competitive price. Start your search today and share your thoughts in the comments—are you planning to buy a used car this year?
