Showroom vs online shopping: which are SA's most popular new cars?

As Bob Dylan famously sang The Times They Are A-Changin’. This is the case in the automotive industry as more consumers buy cars without internal combustion engines. They are also changing their shopping habits, buying online. What new cars are they buying at a click of the mouse? And how does the outcome differ from conventional shopping methods?

The answers to these questions can be found by examining AutoTrader inquiry data for new vehicles from January 1 to April 30 and comparing it to the new vehicle market in its entirety. Inquiries reveal consumer intent and can be considered an indication of the cars they are most likely to buy. 

AutoTrader was selected because it is one of South Africa’s largest motoring marketplaces (while it is perhaps more readily associated with used cars, it also offers a host of new cars for sale). Total vehicle sales for 2022 are courtesy of Naamsa.

If one compares the two, some interesting parallels and some glaring differences emerge. The parallels are thought-provoking. For example, the Ford Ranger and Toyota Hilux appear in the top three of both data sets (the Ford is number one on the AutoTrader list and number three on the Naamsa list; the Hilux is number three on the AutoTrader list and number one on the Naamsa list).

However, the differences are even more fascinating. For example, three vehicles — the Volkswagen Tiguan, Toyota Fortuner and Volkswagen T-Cross — appear on the AutoTrader list and not on the Naamsa list. On the other hand, three Toyotas — the Urban Cruiser, Hi-Ace and Starlet — appear on the Naamsa list and not the AutoTrader list. The obvious question is why?

According to George Mienie, AutoTrader CEO, this could be due to demographics.

“For example, Millennials and Gen Xers are the biggest online shoppers, with 67% of Millennials and 56% of Gen Xers preferring to shop online vs in a bricks and mortar shop. While they may find the Starlet appealing, they may not shop for an Urban Cruiser (it’s a family vehicle) and it is unlikely they would shop for a Hi-Ace because these vehicles are mainly used for people moving purposes.”

There’s another surprising difference between total sales and AutoTrader inquiry data: the value of the vehicles. Whereas, according to WesBank statistics, the average selling price of new cars financed through the company in South Africa during April was R392,330, the average value of new cars being inquired about on AutoTrader is R515,536. Does this mean Millennials and Gen Xers — who are shopping online — have lots of money to spend? It could be so.

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