Breaking News | Second-hand car market makes an impressive mark in South Africa

Second-hand car market makes an impressive mark in South Africa

The implementation of the lockdown to prevent the rapid spread of COVID-19 has affected the South African vehicle market in a drastic way, with numerous South Africans losing their jobs and putting a strain on the economy. But things have been looking up for the second-hand car market following the move to a level with fewer restrictions allowing the vehicle market to operate.

According to the latest Used Car Rate of Sale (ROS) from sales made in June, Volkswagen Polo Vivo topped all vehicle brands by being the fastest seller last month. The lockdown destructively affected the market, which has critically affected the source of income for many people and this could be the reason why multiple South Africans are going for second-hand vehicles rather than buying brand-new vehicles.

The unforeseen pandemic did not just affect individuals but several of businesses as well. It has severely impacted many dealerships all over the country, resulting in additional challenges which include stock management and protection.

According to the managing director of Volvo Car South Africa, Greg Maruszewski, many people are interested in purchasing pre-owned vehicles since the nationwide lockdown.

"I think there will be a number of aspects affecting the used car market in the coming months. In some segments where for example the rental car companies are de-fleeting, there might be temporary pressure on prices for those cars due to oversupply. However, I think this will be limited.

“There may well be a higher demand for used cars as new car prices inevitably increase due to currency weakness, and this may well support the used car prices. Between these two forces, I expect the used car market to be stronger in the short term than the new car market when comparing to for example the same period last year." he said.

Toyota did exceptionally well with two of its largest models taking the second and third on the indicator.

Editor

Pearl Mwale

 

 

 

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