6 days ago
How South Africans are adapting to the rising price of car ownership
Car ownership remains an important goal for many South Africans, even as the landscape continues to evolve. According to WesBank, the cost of owning a vehicle in South Africa has increased by 50.6% since 2021, placing further strain on consumers.
While new vehicle prices continue to rise — for example, the starting price of a Polo Vivo now stands at R271,900 — drivers still have a range of options, even as factors such as fuel costs, interest rates and insurance premiums fluctuate.
For those seeking more accessible options, there are still paths to vehicle ownership, including pre-owned choices, flexible financing and innovative subscription models. According to AutoTrader research, about 60% of financed vehicles in South Africa are used cars, indicating consumers are seeking more cost-effective solutions.
'The South African automotive landscape is undergoing a significant evolution driven by affordability,' said AutoTrader CEO George Mienie.
'Our data reveals a clear consumer shift towards the used car market, highlighting the resilience and adaptability of local buyers in the face of economic challenges. This trend underscores the industry's responsibility to provide accessible and reliable mobile solutions for South African consumers.'
This is reflected in the finance application data from Standard Bank, which shows that though new car finance applications dropped by 30% in February 2025, used car applications remained stable.
'While this might not seem like a sharp decline, it's staggering when you consider 35% to 40% of cars we financed a decade ago were new,' said Derick de Vries, head of automotive retail at Standard Bank Vehicle and Asset Finance.
Used vehicles have become increasingly attractive to South African buyers, with used car price inflation easing to 1.7% in 2025, down from 5.6% two years earlier. This shift positions used vehicles as a more value-driven option, particularly as AutoTrader reports a growing interest in older models, specifically those with an average registration age of six years.
Which vehicles are they buying?
While the Ford Ranger and Toyota Hilux continue to dominate the used vehicle sales chart, notable shifts show consumers are increasingly looking at more affordable vehicles.
There has been a noteworthy decline in the sales of premium vehicles, with used cars such as the Suzuki Swift, Toyota Starlet and Nissan NP200 seeing an increase in recent months. Last month, AutoTrader data showed these models were in the top 10 best-selling used cars, while premium vehicles such as the BMW 3 Series have dropped off.
Aside from the cost benefits of buying more affordable, fuel-efficient vehicles, several other reasons exist for this shift in buying behaviour. While used cars offer immediate cost savings compared with their new counterparts, buyers must weigh this against the costs of servicing and potential maintenance, especially for models that have passed their warranty period. Smaller cars, such as the Swift and Polo Vivo, typically offer lower running costs compared with used luxury and premium cars.
Image: Supplied
AutoTrader offers several resources to help prospective buyers make informed decisions. The online automotive marketplace features price ratings to help consumers compare the prices of used vehicles with those of similar cars available. Additionally, they offer tools such as an affordability calculator, which enables customers to determine suitable vehicle options based on their monthly budgets.
However, when it comes to new cars, affordability constraints have forced consumers to enter new vehicle finance agreements with longer loan terms (72-96 months) and opt for balloon payments, which lead to higher overall costs and an increased risk of repossession.
