As more South Africans face financial constraints, there has been a noticeable shift in consumer behavior when it comes to vehicle ownership. One significant trend, highlighted in a recent TopAuto article by Albert du Toit, “What the average South African pays for a new car right now – And what you can buy with it,” indicates that South Africans are downsizing their garages and opting for a single, multipurpose vehicle instead of maintaining two cars. This move is largely driven by rising vehicle prices and diminishing disposable incomes. The average price of a new car in South Africa now sits at R391,000, an increase from R387,000 a year ago.
This trend is not just about financial limitations but also about maximizing value. Many households are trading in multiple vehicles for a single crossover, SUV, or bakkie that offers more versatility. Ride-hailing services like Bolt and Uber have also made it easier for families to manage with fewer cars, while the cost of maintaining multiple vehicles continues to rise.
Why Buying on Auction Makes Sense
As car prices climb, more consumers are turning to auctions to get the most bang for their buck. At auctions, you can find late-model vehicles with low mileage, many still under service plans. The prices at auctions are often lower than retail, with cars fetching around 75% of their book trade value. This represents significant savings, especially for buyers who are unaware of the quality of vehicles available at these events.
For instance, reputable auctioneers like MFC Bank even provide DEKRA condition reports, ensuring buyers know exactly what they’re purchasing. Auction Finance is also available, making it easier than ever for buyers to secure the right financing for their new purchase. Despite common misconceptions, purchasing a vehicle through auction doesn’t mean sacrificing quality – it’s a smart financial move for those looking for great deals on vehicles.
What the Market is Paying for New Cars
To put things into perspective, here are some examples of starting prices for new vehicles in the traditional retail market, as highlighted in the TopAuto article:
- Fiat 500C 1.2 Style – Starting price: R379,900 (Power: 51kW/102Nm, Fuel consumption: 4.8l/100km)
- Honda Fit 1.5 Comfort – Starting price: R380,500 (Power: 89kW/145Nm, Fuel consumption: 5.5l/100km)
- Nissan Navara 2.5 Single Cab XE – Starting price: R381,000 (Power: 118kW/233Nm)
- Toyota Urban Cruiser 1.5 XR Auto – Starting price: R382,900 (Power: 77kW/138Nm, Fuel consumption: 6.1l/100km)
- Mitsubishi Xpander 1.5 Auto – Starting price: R385,995 (Power: 77kW/141Nm, Fuel consumption: 7.0l/100km)
- Chery Tiggo 4 Pro 1.5T Elite Auto – Starting price: R386,900 (Power: 108kW/210Nm, Fuel consumption: 6.8l/100km)
- Mahindra XUV300 1.5TD W8 – Starting price: R386,999 (Power: 86kW/300Nm, Fuel consumption: 4.8l/100km)
- GWM Steed 5 2.0VGT Double Cab SX – Starting price: R390,150 (Power: 110kW/320Nm, Fuel consumption: 7.6l/100km)
- Haval Jolion Pro 1.5T Premium – Starting price: R391,150 (Power: 105kW/210Nm, Fuel consumption: 8.1l/100km)
- Kia Sonet 1.5 LX Auto – Starting price: R391,995 (Power: 85kW/144Nm, Fuel consumption: 6.2l/100km)
- Opel Corsa 1.2T Edition – Starting price: R394,900 (Power: 74kW/205Nm, Fuel consumption: 5.7l/100km)
- Renault Duster 1.5dCi Zen – Starting price: R397,999 (Power: 66kW/210Nm, Fuel consumption: 5.1l/100km)
- Dayun Yuehu S5 Standard – Starting price: R399,900 (Power: 35kW/105Nm, Fuel consumption: Electric)
- Foton Tunland G7 2.0TD Double Cab TL – Starting price: R399,900 (Power: 120kW/390Nm, Fuel consumption: 7.4l/100km)
- JAC T8 2.0CTI Double Cab Lux – Starting price: R399,900 (Power: 104kW/320Nm, Fuel consumption: 7.8l/100km)
- Suzuki Jimny 1.5 GL AllGrip 3-door – Starting price: R399,900 (Power: 75kW/130Nm, Fuel consumption: 6.3l/100km)
- VW Polo Hatch 1.0TSI 70kW Life – Starting price: R401,400 (Power: 75kW/175Nm, Fuel consumption: 5.4l/100km)
Auction Advantage
By purchasing on auction, buyers can expect significant savings compared to these retail starting prices. Auctions offer not only affordability but also the opportunity to secure high-quality vehicles that can compete with these new models in terms of reliability and performance, often at a fraction of the cost.
Join the Trend—Get Started with Auction Finance
If you're looking for affordable ways to buy your next vehicle, consider exploring auction options. With Auction Finance, we provide easy access to financing for auction purchases, helping you secure pre-approvals and get behind the wheel of your next vehicle with ease.
For daily updates on bank, fleet, and commercial vehicle auctions across South Africa, join our WhatsApp group to stay informed. Simply click here. If you’re ready to apply for finance, visit us at www.auctionfinance.co.za for more information. Auction Finance is a Auth. FSP34936
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