The South African economic landscape has seen more stability in 2024, with inflation slowing to an average of 5.38%¹, compared to 6,0% in 2023 and 6.9% in 2022². This economic relief has translated into slower price hikes for the used car market.
The AutoTrader Retail Price Index (RPI), a key measure of price movements in the used car market, shows that the average price increase for used cars dropped to 2.43% this year from 7.35% in 2023.
“The easing of inflation in 2024 has brought some much-needed stability to the used car market, which is good news for consumers, who are now seeing slower price hikes and more options in the market.” says George Mienie, AutoTrader CEO.
This trend is significant as it highlights that used car price inflation is not only lower than last year, but is also well below the overall market inflation. By tracking sold listings and comparing them to the Consumer Price Index (CPI), AutoTrader’s RPI provides a comprehensive understanding of how the used car market interacts with the broader economy.
Several factors have influenced this stabilisation. The supply and demand for used cars, shifts in fuel prices, exchange rate fluctuations, and changing consumer buying power have all played a role.
In particular, the slight easing of the repo rate has given consumers more debt flexibility. Additionally, the government’s economic policies and shifts in energy prices have created a more balanced environment for both new and used car sales.
“We’ve been closely tracking market trends through the Retail Price Index (RPI) since 2019,” says Mienie. “The decline in price hikes in 2024 reflects improved conditions in the used car market, offering a much-needed reprieve for buyers.”
AutoTrader’s RPI, together with the Consumer Price Index (CPI), provides key insights into how inflation is shaping the South African car market, offering transparency and guidance for both buyers and dealerships.
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