Used cars in Q1 2024 were cheaper than last year

Over the past few years, the used car market has slowly been returning to normal after the Covid-19 pandemic turned the industry upside down, with low inventory, high demand and higher prices.

However, it seems the used car market will get better for customers with the average price and mileage of used cars declining in Q1 2024 compared with the year before. 

“The average price of the most sold used vehicles has fallen by 3.5% in the first three months of 2024 compared with the same period last year. For consumers this is promising as it points to used car values stabilising after the turbulent effects of Covid-19,” said  AutoTrader CEO George Mienie. 

The average price of the top 10 most sold used cars in Q1 2024 was R320,335, compared with R331,814 in Q1 of 2023. Similarly, the average mileage has tumbled from 87,903km (Q1 2023) to 77,184km (Q1 2024). That’s a substantial 12.2% decline.

But does that mean lower prices across the board?

That depends on what’s being sought. All the vehicles on the top 10 most sold list are in high demand. But, take the Ford Ranger for example, despite overall mileage and prices decreasing, the pickup saw an increase in average pricing from R413,679 to R466,479. However, average mileage has fallen by 13,737km while the average registration age is five years old, down from six years old. 

On average, car buyers in Q1 2024 could purchase newer vehicles with the average model year being 2019 (five years old) compared with 2017 (six years old) in Q1 2023. This shows consumers are getting more bang for their buck as prices return to normal. 

Several models have been bumped off the top 10 list with the Nissan NP200 and Volkswagen Golf replaced by the Suzuki Swift and Kia Picanto. This shows changing needs with buyers looking for compact and economical hatchbacks instead of small bakkies and mid-sized hatchbacks.

Other changes include the Ford EcoSport, which moves from eighth to 10th place. The crossover was recently discontinued, so this could reflect fewer demo or used models on the market.

It remains to be seen whether prices will continue to decrease or remain stable. It’s worth noting that the prices of the Toyota Hilux, VW Polo, and Toyota Fortuner (some of South Africa’s most popular models) all declined in Q1 2024.