With over 73% of new cars in South Africa now costing more than R500,000, owning a vehicle has become a distant dream for many. According to a recent article by TopAuto, the average formal sector salary of R26,800 per month means most South Africans can only afford a car priced at around R250,000—a price point where new car options are virtually nonexistent.
But there’s good news for savvy buyers: auctions are emerging as the go-to solution for affordable, clean, late-model vehicles. Here’s why more South Africans are turning to auctions to find their next car—and how Auction Finance can help you secure a great deal.
The Rising Cost of New Cars
As highlighted in the TopAuto article, the COVID-19 pandemic disrupted global supply chains, leading to production shutdowns and a surge in car prices. Even as production has recovered, prices have remained high due to factors like the fluctuating rand, high import duties (18%-25%), and the inclusion of advanced tech features in modern vehicles.
The result? The average South African is priced out of the new car market, with only a handful of models available under R250,000.
Why Auctions Are the Answer
Auctions offer a practical and affordable alternative to buying new. Here’s why they’re gaining popularity:
Unbeatable Prices: Auction trends show that vehicles are currently selling at around 85% of their trade value—well below retail prices. This means you can secure a high-quality, late-model vehicle for significantly less than you’d pay at a dealership.
Wide Variety: From fuel-efficient hatchbacks to reliable bakkies, auctions offer a diverse range of makes, models, and conditions to suit every budget.
No Dealer Mark-Up: By cutting out the middleman, you save on the hefty dealer mark-up, leaving room in your budget for insurance, maintenance, and upgrades.
Great for Resale: Buying at auction means you’re less likely to take a big hit on resale value, making it a smarter long-term investment.
Addressing Auction Concerns
We understand that some buyers may be hesitant about auctions due to the “voetstoots” (sold as-is) nature of the sales. However, reputable auctioneers like MFC provide Dekra inspection reports on all their vehicles, giving you peace of mind about the car’s condition.
Additionally, Auction Finance offers a variety of Value-Added Products and Services (VAPS), including warranty options and maintenance plans, to protect your purchase.
How Auction Finance Can Help
At Auction Finance, we make the auction process seamless and stress-free. Here’s how:
Pre-Approved Finance: Get pre-approved and know your budget before you bid.
Onsite Support: Our team is available at all major auctions, including bank vehicle, fleet, and commercial auctions, to assist you every step of the way.
VAPS: Protect your purchase with our range of value-added products.
Don’t Miss Out on the Auction Advantage
With new car prices soaring and affordability becoming a major concern, auctions offer a practical and cost-effective solution for South African buyers. Whether you’re looking for a fuel-efficient runabout or a reliable family car, auctions provide access to a wide range of vehicles at prices that won’t break the bank.
Take the first step toward owning your dream car today. Apply for pre-approved finance online at www.auctionfinance.co.za and let us help you drive away with a great deal.
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