How cash-conscious consumers are affecting the used car market

South Africans are usually a fiercely loyal bunch when buying a car, but with rising prices and tightening wallets even automotive stalwarts have seen a downturn in used car sales — except for a few.

Consumers are seeking value in the used car market, as reflected in strong sales of the Volkswagen Polo Vivo, Suzuki Swift, Kia Picanto and Nissan NP200. In the first six months of 2024, all four vehicles enjoyed positive growth, with stronger sales than H1 2023.

The Swift, in particular, put on an impressive showing, with a 67.8% increase in used car sales. The Polo Vivo jumped 12.83% for total sales of 5,794 in H1 2024. This shows a need for affordable, reliable and economical cars in South Africa. 

“Consumers are tightening their belts across the board, which is reflected in the H1 2024 used car sales figures,” said AutoTrader CEO George Mienie.

“While sales of more expensive used cars have fallen, the popularity of more affordable vehicles highlights a need for inexpensive, reliable and economical used cars. Vehicles such as the Picanto and Swift are becoming increasingly popular but still trail behind the Ford Ranger, which, despite the challenging year, only saw a decline of -0.32% in sales.”

South Africa’s best-selling used vehicle, the Ford Ranger, wasn’t impervious to market declines in the first half of 2024. Based on AutoTrader's used car sales data, in 2024, 9,669 units were sold between January and June.

That represents a -0.32% decline compared to last year when 9,700 Rangers left showroom floors. The Ranger’s closest rival, the Toyota Hilux, suffered a -5.11% decline, with 8,475 units sold in H1 2024 compared with 8,931 examples in H1 2023. 

The two premium offerings on the list, the Mercedes-Benz C-Class and the BMW 3 Series, suffered the biggest losses, with declines of -15.05% and -12.53%, respectively. This suggests that as the cost of living increases and budgets are tested, South Africans are less interested in pricey luxury sedans. The numbers are still impressive, with 3,143 C-Classes and 2,919 3 Series’ sold in H1 2024.

It’s worth noting the Swift and Picanto are new additions to the top 10 most sold used car list, supplanting the Ford EcoSport and Volkswagen Golf that previously made the most sold list in H1 2023.

While the EcoSport and Golf are also reasonably priced, the Swift and Picanto are popular with first-time buyers, retirees, students and buyers looking to downsize. If things continue as they are, we expect additional small vehicles to creep into the top 10 as buyers seek more practical and economical transport solutions.