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There is a reason for "cautious optimism" when it comes to the used car market in South Africa. That's according to George Mienie, CEO ofAutoTrader who points to a number of positive trends in this sector of the automotive industry.
"Prices have begun to increase – albeit slightly – while cars are also selling faster than experienced earlier this year. Both of these factors bode well for the used car market," he notes.
His statements are based on AutoTrader's Used Car Rate of Sale (ROS) indicator, which has just been released for the period ending June 2020. As the largest digital automotive marketplace in South Africa, AutoTrader provides unparalleled insight into car-buying patterns in the country. ROS specifically provides an understanding of which cars South Africans are purchasing the fastest.
According to this data, the fastest-selling used vehicle in South Africa at the end of June was the Volkswagen Polo Vivo, which took a mere 25 days to sell. "This confirms the popularity of the Volkswagen brand yet again; it was also the most sold brand last month," says Mienie.
Wheels24 / Rouel Van Nelson
Toyota was the second most sold brand last month, and so it wasn't surprising to see two vehicles from that manufacturer complete the podium positions. "The Fortuner was the second-fastest selling vehicle last month (26 days to sell), followed by the Hilux (26 days)," reveals Mienie.
AutoTrader's Retail Price Index (RPI) shows a 1,2% increase in prices in June (month-on-month). The average selling price of a car for the month of June was R274 221. "This is a small increase, but it is positive news for retailers indeed. It also means that the demand for used cars continues to rise" notes Mienie.
"Consumer propensity for increased spending albeit on used cars is always a good thing for the automotive industry as a whole as we know the used car market is a much bigger market than new in South Africa," he concludes.
*AutoTrader Rate of Sale (ROS) indicator.
Models that tied in days have been ranked by the lowest average individual time to sell a model.