Why South Africa's used car sales took a knock in May

In the model stakes, the Toyota Hilux continued to lose ground against the Ford Ranger, monthly sales contracting by -15% to 1,271 units vs the Ranger’s 7% increase to 1,612 units.
Image: Supplied

The New Car Market Hit The Skids in May.

New car passenger sales fell by -11.7% year-on-year while used car sales were not that far behind, falling by -10.5% year-on-year and -3% month-on-month.  

“While the drop in sales is indicative of a market coming under pressure, one must be cognisant of consumer uncertainty about the elections, which affected May car sales,” said AutoTrader CEO George Mienie.

In May, sales in the used car market contracted by -996 units resulting in 27,729 used cars sold. The cumulative value of used cars sold amounted to R11,276,303,350, a decline of -10.5% year-on-year.

But it was not all doom and gloom. AutoTrader data shows in May, the average car price dropped by 0.3% to R406,661, and that was for a one year younger — 2019 — model. Paying less for a younger car will be sure to warm the cockles of car buyers’ hearts.

Top 10 sold used models in May 2024 (Source: AutoTrader Used Car Sales Data: May 1 - May 31 2024).
Image: Supplied

Still, little changed in May. The top 10 most sold brands remained unchanged in the used car market. Toyota moved 4,700 units, staying on track as the best seller ahead of Volkswagen and Ford; the Ford Ranger continued to top the best-selling model table; and the VW Polo Vivo 1.4l remained the top-selling variant.

In the model stakes, the Toyota Hilux continued to lose ground against the Ford Ranger, monthly sales contracting by -15% to 1,271 units vs the Ranger’s 7% increase to 1,612 units. Meanwhile, the VW Polo with 1,203 sales is nipping on the Hilux’s heels. 

Despite being the oldest in the line-up with an average age of eight years, premium sedan Mercedes-Benz C-Class grew used car sales by 16%. Models with about 101,704km mileage sold for R399,570 on average. Three-year-old Suzuki Swift models, the youngest in the model ranking, sold for an average price of R189,595.

Still with model sales, the Nissan NP200 half-tonne bakkie made a comeback in May selling 389 units with a month-on-month increase of 11% to oust the Ford EcoSport and earn it ninth spot in the ranking.

“With elections now behind us, the coming months will hopefully bring added impetus to vehicle sales and provide a clearer picture of the health of the car market,” said Mienie.

Article Source ; Times Live.