Navigate South Africa’s car market with tips to compare new vs. used options, understand market trends, and secure the best deal for your budget.
When it comes to buying a car in South Africa, you’re faced with a big choice: go new or go used. Each option has its perks and trade-offs, and knowing how to navigate both can make all the difference in finding the right deal. South Africans are savvy shoppers, and with the used car market holding strong in 2024 despite economic ups and downs, it’s clear there’s a lot to consider. This guide will help you figure out how to get the best value on both new and used cars, plus give you some insight into what’s trending among other buyers this year.
What to do if you’re buying new
For those chasing that “new car smell,” recent trends from South Africa’s National Association of Automobile Manufacturers (Naamsa) show some shifts in new vehicle sales. In August 2024, new car sales reached 43,588 units – a 4.9% dip from the same time last year. But despite the overall slowdown, brands like Toyota, Volkswagen, and Suzuki are still hot. Here are some tips to get a good deal when buying new.
Wait for the year-end deals
Many dealerships in South Africa offer year-end sales to clear out older models, especially towards the end of the year. If you can wait, shopping during these periods can get you great savings. And with new car sales trending downwards, dealerships might be even more open to negotiating.
Hop online to compare prices
Online tools like AutoTrader and Cars.co.za let you compare prices across dealerships. Not only does this show what other buyers are paying, but it also strengthens your position when it’s time to negotiate.
Watch out for manufacturer deals
Brands often offer incentives like cashback, trade-in assistance, or low-interest financing. Given the recent dip in sales, manufacturers might be especially keen to make a deal to keep those numbers up.
How to get a quality used car at a good price
South Africa’s used car market has been growing steadily. In the first half of 2024, over 172,668 used vehicles were sold – a 2.2% year-on-year increase. Search activity for used cars has also been booming, with 21 searches conducted every second. The demand for used cars is high. This means used car buyers need to come prepared with research and negotiation strategies to score the best deal.
Research the retail value
Knowing the fair retail value for the make, model, and year you’re after can help you avoid overpaying. While Toyota, Volkswagen, and Suzuki remain popular, 2024 has also seen a rise in demand for budget-friendly options like Chery and Kia.
Consider Certified Pre-Owned (CPO)
Certified pre-owned (CPO) cars are popular because they come with manufacturer inspections and warranties, offering extra reassurance.
Choose the right time to buy the car
Timing matters when it comes to used cars, too. After a 9.6% drop in used car sales in September 2024>, some dealerships may be more willing to negotiate. When sales are down, you might find it easier to land a good deal.
Get a vehicle history report
A vehicle history report from services like Dekra Automotive or the South African Insurance Association’s online tool can flag any accidents or repairs the car has been through. With so many cars on the market, this extra step helps you buy with confidence and negotiate smartly.
So, is used or new right for you?
Choosing between a new or used car isn’t just about the sticker price — it’s about what fits your lifestyle and budget best. Here’s a quick look at some key points that might help you decide.
Depreciation and demand
New cars lose value quickly, often by 20-30% in the first year. Once a car is a few years old, its depreciation slows and stabilises. Plus, if the car has a solid maintenance history and is a trusted brand, it can hold its value even better. In fact, there were 328 million searches for used cars in the first half of 2024 alone, a clear sign that many buyers see the economic advantage in going used.
The cost of financing and insurance
New cars often have lower interest rates because lenders see them as safer bets, but they come with a higher loan amount overall. Used cars might have slightly higher rates, as they’re seen as a bit riskier, but since they're usually cheaper, you end up with a smaller loan (and lower monthly payments).
In terms of insurance, it is usually pricier for new cars because they cost more to repair or replace, and you will need comprehensive cover if you’re financing. For used cars, insurance tends to be cheaper and if the car’s value is lower and it’s paid off, you could even consider third party only cover and save some cash.
Reliability and maintenance
New cars generally mean fewer repairs in the first few years since they’re under warranty and haven’t seen any wear and tear yet. But if reliability is your main thing, a lot of people in South Africa go for used Toyotas and Volkswagens as they are known to last. Certified pre-owned cars are also a great option because they’ve been checked over, often come with some warranty, and give you a nice balance of cost and dependability.
Whether you’re aiming for a brand-new ride or a reliable used car, knowing what’s happening in the market is your best bet for a great deal. South Africa’s 2024 trends lean towards affordability and reliability, so take advantage of the insights, plan your timing, and make a decision that’s both smart and budget-friendly.
No matter whether you drive off in a brand-new car or a tried-and-true used one, don’t forget to protect it with comprehensive car insurance. At Naked, you can get a quote and buy car insurance in under 90 seconds – all online, no paperwork. It’s quick, easy, and one less thing to worry about.
