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The Herald
02-07-2025
- Automotive
- The Herald
These were SA's top-selling cars and bakkies in June
South Africans continued to flock to car showrooms last month, driven by decreasing interest rates and an influx of affordably priced imported models. According to automotive body Naamsa, June's new vehicle market grew for the ninth consecutive month to 47,294 units, an increase of 18.7% compared to June 2024. Year-to-date sales for the first half of the year are 13.6% up to 278,911 vehicles. Last month the passenger car segment moved 32,570 units, a 21.7% increase over June 2024. Light commercial vehicles, bakkies and minibuses sold 12,129 units, a gain of 14.9% over the same month last year. A wave of new models and brands continued to stimulate interest in the under R400,000 price band, said Brandon Cohen, chair of the National Automobile Dealers' Association (Nada). 'Most of the growth we're seeing is centred in the sub-R400,000 segment,' Cohen said. 'The price point remains critical for volume, affordability and trade-ins, with a direct knock-on effect on pre-owned sales performance. The used vehicle market is benefiting from improved affordability metrics, driven by softened interest rates, favourable vehicle pricing and the rollout of the two-pot retirement savings reform.' The interest rate reprieve since September 2024 has lifted some burden on indebted consumers and stimulated demand for credit and consequently new vehicles, said Lebo Gaoaketse, head of marketing and communication at WesBank. 'The SA Reserve Bank has lowered rates 0.75% over the past nine months but may become more cautious with further cuts given global economic turmoil.' While lower rates have eased affordability marginally, motorists continue to face budget constraints. Despite low inflation, the average contract term continues to increase while the amount of credit reduces, he said. 'South Africans want new cars but they're spending less on them. This has been enabled to some extent by the entrance of new brands to the market at aggressive price points, but also by innovative and attractive incentives on the dealer floor.'
IOL News
02-07-2025
- Automotive
- IOL News
Petrol price increase does little to deter people from buying new cars
According to data from naamsa | the Automotive Business Council, June's new vehicle market grew for the ninth consecutive month to 47,294 vehicles, an increase of 18,7% compared to June 2024. Image: Antoni Shkraba Studio/Pexels While fuel price increases at the pumps this week will place more costs in South Africans' mobility budgets, it isn't deterring them from buying new cars. According to data from naamsa | the Automotive Business Council, June's new vehicle market grew for the ninth consecutive month to 47,294 vehicles, an increase of 18,7% compared to June 2024. 'South Africa's new vehicle market growth has an uncanny alignment to the start of interest rate cuts,' says Lebo Gaoaketse, Head of Marketing and Communication at WesBank. 'Interest rate reprieve since September 2024 has lifted some burden on indebted consumers and stimulated demand for credit and consequently new vehicles. The South African Reserve Bank has lowered rates 0,75% over the past nine months but may become more cautious with further cuts given global economic turmoil.' But while lower rates have eased affordability marginally, motorists continue to face budget constraints. Despite low inflation, the average contract term continues to increase while the amount of credit reduces. 'These are two major indicators of affordability pressure to reduce monthly instalments within the need for new replacement vehicles,' says Gaoaketse. 'In short: South Africans want new cars – but they're spending less on them.' June's infographic Image: Supplied This has been enabled to some extent by the entrance of new brands to the market at aggressive price points, but also by innovative and attractive incentives on the dealer floor. 'While new vehicle sales continue to build momentum, the overall market growth is clouded in the greater context of having merely returned to pre-COVID-19 levels,' says Gaoaketse. 'Compared to June 2023, the current market is only 1,5% ahead and 2024 volumes were 14% lower in the same month.' Year-to-date sales for the first half of the year are 13,6% up to 278,911 vehicles. The additional 33,291 vehicles this represents in the market this year, compared to the first half of 2024, is the realisation of the recovery the market has displayed this year. New vehicle sales for June 2025 Image: Supplied
The Herald
03-06-2025
- Automotive
- The Herald
May figures: the best-selling cars in SA
May's new vehicle market in South Africa registered 45,308 sales against the 37,139 retailed in the same month last year. It was the eighth month in a row that sales have outperformed those of a year earlier. After five months of 2025, the market is 12.6% ahead of the same stage of 2024, up from 205,771 to 231,719 units. Brandon Cohen, chair of the National Automobile Dealers' Association (Nada), thinks the real market is stronger than it appears as 12 of the 24 Chinese brands selling vehicles here don't report their sales numbers. Lebo Gaoaketse, head of marketing and communication at WesBank, was cautiously enthusiastic about the figures. 'First quarter sales performed better by volume while displaying slower growth, indicating that the month was a solid volume performance rather than an overriding reason to celebrate,' he said. 'While volumes continue to be confidence-inspiring, household budgets remain under pressure,' said Gaoaketse.
Daily Maverick
29-05-2025
- Automotive
- Daily Maverick
The true price of owning a car
Most prospective buyers of a vehicle tend to focus on its purchase price when figuring out if it's affordable. But there are many other factors to consider because they will inflate your monthly costs. Having recently bought a new car, I've found it quite a big adjustment getting used to a vehicle loan instalment going off my bank account after not having to pay one for eight years. That said, buying a car is about so much more than its financing. I found WesBank's recent calculations about car ownership costs incredibly helpful. These calculations look at the estimated total monthly expenses associated with owning and maintaining one of the top-selling hatchbacks locally. The data also shows how the total cost of ownership has changed over time. 'Despite the recent improvement in passenger car sales, South Africa remains a price-sensitive market,' says Lebo Gaoaketse, head of marketing and communication at WesBank. 'This means when they decide to buy a car, new or used, most buyers base their decision primarily on the purchase price. But it's important to look beyond just that and consider the total cost of ownership, which is influenced by several other factors.' Cost breakdown For a mid-range hatchback with a retail price of about R294,000, including VAT, you can expect to pay an estimated monthly instalment of R5,554.80. Cars in this price range include the Volkswagen Polo Vivo 1.4 Comfortline, Kia Picanto 1.2 EX manual, Suzuki Swift 1.2 GLX, Toyota Starlet 1.5 XS and the Fiat 500 Cult. The instalment is influenced by the interest rate linked to the vehicle financing contract, which in turn is influenced by factors such as your credit score and the loan term. It's important to note that the interest rate will vary between customers, depending on their credit profile. Insurance options If you're financing your car through a bank, insurance is compulsory before you drive it off the showroom floor. But even if your vehicle is not financed, insurance protects you against losses that might result from an accident or theft. Insurance premiums vary depending on factors such as the make and model of the car, as well as the driver's history and location. For the model in question, a comprehensive insurance premium of R1,827.24 monthly can be expected. It's worth noting that even if you have comprehensive insurance, the amount you owe the bank includes interest and is usually significantly more than the value of the car, especially in the first four years of ownership. Credit shortfall insurance is a valuable add-on to your policy. I made a point of letting my family know that I had taken this option in case I end up dying in a car accident, because I wouldn't want them stressing about the debt. Nor would I want to be stuck paying off the debt if my car is written off. Fuel costs Fuel is one of the largest recurring expenses for car owners. Gaoaketse recommends that you estimate your monthly fuel costs, determine your car's fuel consumption rate and the distance you travel each month. The average monthly fuel costs for the vehicle in this scenario are R3,902.50. This is where your choice of car can make a massive difference. Although I didn't have a car instalment previously, I was forking out between R4,000 and R6,000 a month on fuel – the 'perk' of living two hours away from the city. Swapping my gas-guzzling SUV for a hybrid car has been an absolute game-changer, and the difference at the fuel pumps still astounds me two months later. Continuing maintenance Routine maintenance is important to ensure the safe and reliable operation of your vehicle. In the WesBank example, you could expect to pay in the region of R475.75 per month, or R5,709 annually, for running costs, including routine maintenance and general upkeep. Total monthly mobility costs When combining the monthly instalment, fuel, insurance and running costs, the total monthly cost for one of the bestselling hatchbacks in South Africa comes to R11,760.29 – marginally higher than the average total cost of ownership in 2024, which was R11,578.70 per month. Historical data Reviewing historical data, the increase in the total cost of vehicle ownership becomes apparent. For instance, because of vehicle price inflation, the estimated monthly instalment for the study model has jumped from R2,417.03 in 2012 to R5,554.80 in 2025. Insurance premiums have increased from R802.66 to R1,827.24 over the same period, and fuel costs have ballooned from R1,856.75 to about R3,902.50 per month. 'Viewing the cost of vehicle ownership from this perspective is important and underscores the need to objectively and honestly evaluate one's affordability level before signing a long-term vehicle finance contract to ensure a fulfilling vehicle ownership experience,' says Gaoaketse. DM PS the numbers in this story were hypothetical and not what Neesa Moodley is paying for her car.
TimesLIVE
29-05-2025
- Automotive
- TimesLIVE
How South Africans are adapting to the rising price of car ownership
Car ownership remains an important goal for many South Africans, even as the landscape continues to evolve. According to WesBank, the cost of owning a vehicle in South Africa has increased by 50.6% since 2021, placing further strain on consumers. While new vehicle prices continue to rise — for example, the starting price of a Polo Vivo now stands at R271,900 — drivers still have a range of options, even as factors such as fuel costs, interest rates and insurance premiums fluctuate. For those seeking more accessible options, there are still paths to vehicle ownership, including pre-owned choices, flexible financing and innovative subscription models. According to AutoTrader research, about 60% of financed vehicles in South Africa are used cars, indicating consumers are seeking more cost-effective solutions. 'The South African automotive landscape is undergoing a significant evolution driven by affordability,' said AutoTrader CEO George Mienie. 'Our data reveals a clear consumer shift towards the used car market, highlighting the resilience and adaptability of local buyers in the face of economic challenges. This trend underscores the industry's responsibility to provide accessible and reliable mobile solutions for South African consumers.' This is reflected in the finance application data from Standard Bank, which shows that though new car finance applications dropped by 30% in February 2025, used car applications remained stable. 'While this might not seem like a sharp decline, it's staggering when you consider 35% to 40% of cars we financed a decade ago were new,' said Derick de Vries, head of automotive retail at Standard Bank Vehicle and Asset Finance. Used vehicles have become increasingly attractive to South African buyers, with used car price inflation easing to 1.7% in 2025, down from 5.6% two years earlier. This shift positions used vehicles as a more value-driven option, particularly as AutoTrader reports a growing interest in older models, specifically those with an average registration age of six years. Which vehicles are they buying? While the Ford Ranger and Toyota Hilux continue to dominate the used vehicle sales chart, notable shifts show consumers are increasingly looking at more affordable vehicles. There has been a noteworthy decline in the sales of premium vehicles, with used cars such as the Suzuki Swift, Toyota Starlet and Nissan NP200 seeing an increase in recent months. Last month, AutoTrader data showed these models were in the top 10 best-selling used cars, while premium vehicles such as the BMW 3 Series have dropped off. Aside from the cost benefits of buying more affordable, fuel-efficient vehicles, several other reasons exist for this shift in buying behaviour. While used cars offer immediate cost savings compared with their new counterparts, buyers must weigh this against the costs of servicing and potential maintenance, especially for models that have passed their warranty period. Smaller cars, such as the Swift and Polo Vivo, typically offer lower running costs compared with used luxury and premium cars. Image: Supplied AutoTrader offers several resources to help prospective buyers make informed decisions. The online automotive marketplace features price ratings to help consumers compare the prices of used vehicles with those of similar cars available. Additionally, they offer tools such as an affordability calculator, which enables customers to determine suitable vehicle options based on their monthly budgets. However, when it comes to new cars, affordability constraints have forced consumers to enter new vehicle finance agreements with longer loan terms (72-96 months) and opt for balloon payments, which lead to higher overall costs and an increased risk of repossession.
