If you’ve been thinking about buying a car, there’s good news for those eyeing the used-car market. In the second quarter of 2024, used-car prices in South Africa only saw a slight increase of 0.6%—much lower than the country’s inflation rate of 5.2% for the same period. In comparison, new-car prices jumped by 4.4%, which is steering more buyers towards used vehicles.
With more and more South Africans opting for pre-owned cars, the ratio of financed used cars to new cars has risen to 1.44 in Q2 2024. That means for every new car being financed, there are almost 1.5 used cars getting the green light.
What’s Driving Buyers to the Used-Car Market?
As the cost of living rises, it’s no surprise that South Africans are looking for ways to save without compromising on quality. The used-car market is becoming an increasingly attractive option, and auctions offer a fantastic way to snag a deal. Not only can you find a variety of vehicles—often below dealership prices—but auction cars are usually well-maintained fleet or bank repossessions.
With the rise in used-car financing, it’s clear that more consumers are turning to the pre-owned sector as a way to secure quality vehicles at more affordable prices. Auctions are a great place to find them.
Why Auctions Make Financial Sense Right Now
Buying a car at auction can be a smart, budget-friendly decision, especially with used-car prices still rising slowly. At Auction Finance, we know that affordability matters. That’s why we’re here to help you get the car you want, without stretching your budget. Whether you’re looking for a family sedan, a tough bakkie, or even something a bit sportier, we offer tailored finance solutions to fit your needs.
Plus, you don’t have to worry about complicated processes—our team is ready to guide you through every step of buying and financing your next vehicle at auction. Learn more about how we can help at www.auctionfinance.co.za (FSP34936).
Younger Buyers Are Leading the Auction Charge
What’s interesting is that younger South Africans, especially Generation Z, are starting to enter the car finance market in larger numbers. In Q2 2024, the share of Gen Z buyers financing vehicles jumped from 7.9% to 10.9%. This shows that younger buyers are more open to alternative ways of buying cars, and auctions are proving to be an exciting option for them.
Ready to Bid? Here’s Why Auctions Could Be Your Best Bet
- Affordability – With prices rising slower in the used-car market, auctions are a smart way to get a quality vehicle at a lower cost.
- Variety – You’ll find a wide range of vehicles from bank repossessions, fleet sales, and more.
- Flexible Finance – We’re here to help you secure the financing you need, so you can bid with confidence knowing your finances are covered.
If you’re ready to find your next car at an auction, let Auction Finance make it easier. Get pre-approved and take the first step toward driving your dream vehicle at a price that suits you.
Visit www.auctionfinance.co.za to start your journey today!
