The rising cost of new cars and the related stock delays has South Africans looking to the used car market to find their next vehicle, and in turn the demand is driving up the average price.
A look at AutoTrader’s top 10 most listed used car variants provides useful insights into how the market is trading.
The group’s live market data provides insight into car shopping trends as the largest and most digitally advanced motoring marketplace in the country. The company’s latest data shows that the car with the most number of listings is the Volkswagen Polo Vivo Hatch 1.4 Trendline – six of the top 10 variants are Volkswagens.
The average price of the Volkswagen Polo Vivo Hatch 1.4 Trendline – is R201,584. The average year model is 2020, and the average mileage is 47,611km. A brand new one will cost you R235,200. As one of South Africa’s most popular new cars, it should be no surprise that the entry-level Polo Vivo Hatch 1.4 Trendline is also the most-listed used car, the group said.
Numerous fleet operators run Polo Vivos, while it’s also a popular choice among first time-car buyers who want something fuss-free and frugal between the fuel pumps.
Interestingly, Volkswagen’s Golf GTI is another one of the most-listed used cars on AutoTrader. On average, the Golf GTI (Mk VII) is listed for sale at R596,918, with an average registration year of 2018. It will have covered on average 56,406km from new after four years of use.
If you bought a new Golf 8 GTI, albeit the latest version is an all-new model, it would cost you R689,800 without any optional extras. Buying a similar used GTI would see you save around R100,000.
While there are great deals on some models such as the Polo Vivo, Ford EcoSport, and Toyota Rav4 there are some used cars being listed for sale that are on average more expensive than their brand new counterparts.
The Volkswagen Polo Hatch 1.0TSI 70kW Life, for example, is listed for R353,600 as a brand new car, but used car listings show an average price of R404,059. That’s a R50,000 premium, and the car is listed to have on average 3,569km on the clock.
“The Polo is a sought-after model could be seeing a higher average price due to demand. It’s also important to point out that when comparing a new car price to a used car price, to compare car specifications too. You are likely to find more optional extras included in your used car that don’t come standard with a new car,” said George Mienie, CEO of AutoTrader.
The Polo hatchbacks aren’t the only models selling for a premium right now. Toyota’s Corolla Cross is in huge demand, resulting in a premium over new prices in the market. It’s the same with cars like the VW Tiguan, which has a one-year waiting list, said Mienie.
Numerous models are either delayed or won’t arrive at all in 2022, he said. “Toyota’s been hit by floods in KZN, and there’s no word yet as to when it will be able to fire up the Corolla Cross factory again. Other OEMs worldwide are still battling the fallout of the war in Ukraine. These ongoing challenges are expected to drive used car prices up further.”
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Source: Business Tech
