Stability in the South African Used Car Market: 2024 Economic Insights

The South African used car market is experiencing a positive shift in 2024, thanks to the overall economic stability and lower inflation rates. According to the AutoTrader Retail Price Index (RPI), the average price increase for used cars has dropped significantly compared to previous years, offering consumers some relief.

This decrease in price hikes can be attributed to various factors such as supply and demand dynamics, fuel prices, exchange rate fluctuations, and changes in consumer buying power. The slight easing of the repo rate has also played a role in giving consumers more flexibility in managing their debts. Additionally, government economic policies and energy price shifts have created a more balanced environment for both new and used car sales.

AutoTrader CEO, George Mienie, emphasizes the importance of tracking market trends through the RPI, which provides valuable insights into how inflation is shaping the South African car market. By comparing the RPI with the Consumer Price Index (CPI), buyers and dealerships can make more informed decisions in the current economic landscape.

Overall, the decline in price hikes for used cars in 2024 reflects improved conditions in the market, offering buyers more options and affordability. This trend is a positive sign for the South African automotive industry and indicates a more stable and balanced market for both buyers and sellers.