South Africa’s used car price hike set to continue

South Africa’s pre-owned car market in 2021 has seen a significant price hike that could rise even higher towards the end of the year.

According to AutoTrader, the price of the country’s top ten most enquired on car models has risen by an average of around R30 000.

This much has emerged from an analysis of the most enquired on models on AutoTrader in the first six months of 2021 versus the last six months of 2020. According to AutoTrader’s CEO George Mienie, this is a tangible result of supply and demand.

“According to the 2021 AutoTrader Mid-Year Industry Report, over 319 million total vehicle searches were conducted on AutoTrader during the first half of 2021,” says Mienie.

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“This was a record high, representing growth of 44% year-on-year. This increase in demand has – quite understandably – resulted in prices increasing.”

Mienie also issues a warning to buyers thinking of holding out in the hope of prices coming down as a current shortage of stock might have the opposite effect.

“If these trends continue – namely we see an increase in demand and a reduction in stock – used vehicle prices may continue to increase in the second half of 2021 too,” Mienie says.

Restricted used vehicle availability has played its part in the price hike. AutoTrader’s report reveals that, in the six months ending June 2021, over 633 000 vehicles were listed on AutoTrader. June accounts for the largest stock count. Year-on-year there was a 4% reduction in available stock – meaning fewer consumers were selling vehicles.

Thankfully for car buyers, prices have not increased by the same percentage as car searches. Take the Toyota Hilux, which was the most searched for model in the first six months of 2021 (it accounted for 3.6% of all searches and 11.5-million searches). Its average price has risen by 11.54%.

The increase in average price for the Ford Ranger – the most sold used car in the 2020 AutoTrader Annual Report and the 2021 mid-year report – was even lower at R26 022, or 7.47%.

Too see the 2020 AutoTrader Car Industry Report, click here.