Because of components reminiscent of elevated financial stress and an total discount within the provide of inventory, demand for used cars in South Africa has gone by means of the roof. This notion is supported by knowledge contained within the 2021 AutoTrader Mid-Yr Business Report, which reveals a document 319 million whole car searches have been performed within the first half of 2021.
The report additionally reveals that, within the six months ending June 2021, over 633,000 automobiles have been listed on AutoTrader, with June accounting for the biggest inventory rely. Yr-on-year there was a 4% discount in out there inventory – that means fewer customers have been promoting automobiles, the car market stated.
One of many penalties is a rise within the value of the typical used automobile. There are, nonetheless, just a few excessive examples, the place provide is even more restricted and demand even stronger. In such instances, a calmly used car is usually listed for more than its new counterpart.
AutoTrader’s CEO George Mienie stated that though such cases are comparatively uncommon, they nonetheless present fascinating insights into purchaser behaviour.
“When a new limited-edition model – usually a performance vehicle of some kind – first hits the market, a few units sometimes pop up in the used space. And they’re often listed for even higher than the suggested retail price,” stated Mienie.
“While it may seem inconceivable to pay more for a vehicle on the used market than new, some buyers are prepared to fork over a premium to either skip the waiting list or get their hands on a vehicle that has technically already been sold out. It’s all about supply and demand,” he stated.
One such instance is the new Toyota GR Yaris, an all-wheel-drive homologation particular that has been making waves throughout the automotive world. Although the flagship Rally model retails for R715,600, one listed in Centurion with 2,000km on the clock for R750,900.
It’s an analogous case with the R606,600 base by-product, with a handful of fashions listed at larger costs.
With simply 90 items of the V8-powered Ford Mustang Mach 1 put aside for South Africa, there’s little surprise a few examples of the special-edition coupé have discovered their approach onto the used market at inflated costs, AutoTrader stated.
Listed in Klerksdorp for R1,379,900, this automated model instructions a R176,100 premium over the new value – although all items have reportedly already been bought.
Listed by Ford earlier this 12 months, the Mustang Mach 1 5.0 V8 6MT was priced at R1,182,100, whereas the Mustang Mach 1 5.0 V8 10AT was priced from R1,203,800.
AutoTrader additionally famous that the new Toyota Land Cruiser 300 – a much-anticipated luxurious SUV – listed in Hatfield, with a ZX 3.5T by-product marketed at R2,200,000 – as a lot as R402,900 more than the retail value of R1,797,100.
AutoTrader famous that its closing instance is a bit of completely different, contemplating provide isn’t fairly as restrained. “It’s interesting to note a number of used examples of the locally built Ford Ranger Raptor double-cab bakkie are listed at prices higher than the recommended retail figure of R920,300, including a model in Morningside, Johannesburg priced at R999,995,” the group stated.