Report Overview

South Africa Used Cars Market – Industry Trends & Forecast Report, 2030

South Africa Used Cars Market size by value was estimated at USD 16.9 billion in 2023. During the forecast period between 2024 and 2030, the South Africa Used Cars Market size is expected to expand at a CAGR of 8.6% reaching a value of USD 30.1 billion by 2030. The South Africa Used Cars Market is thriving amid economic change. New car prices increase the demand for affordable used cars. The wide range and low prices of used cars are appealing to price-conscious buyers. Consumers are considering financial and value changes that influence their choices between new and used cars. Economic factors and increasing demand for used cars are expected to shape the market during the period in analysis.

By volume, the South Africa Used Cars Market size was estimated at 2.1 million units in 2023. During the forecast period between 2024 and 2030, South Africa Used Cars Market size is projected to grow at a CAGR of 9.2% reaching a volume of 3.9 million units by 2030. Prominent factors driving the growth of the South Africa Used Cars Market include the growing middle class seeking affordability, rapid urbanization, and reliable transport solutions. Notably, the growing need for affordable mobility and the increase in internet access enabling online sales continue to grow the market, making it a strong and competitive arena.

Used Cars – Overview

Used cars or pre-owned cars are vehicles that are previously owned and are now available for resale. Used cars are sold through a variety of channels, including franchise and independent car dealers, leasing companies, 'buy here pay here' dealers, rental agencies, auctions, and private party sales. Some car dealers offer 'no-frills', 'certified' used cars, and extended service plans or warranties.

South Africa Used Cars Market

Growth Drivers

Increase in Internet Access Enabling Online Sales

Digital tools are boosting the growth of South Africa Used Cars Market due to the rising use of platforms like websites and mobile apps to facilitate the buying and selling process. The ability to research, compare, and buy used cars from the comfort of the home is becoming an essential step in the car-buying transition. Retailers are responding to the trend by increasing their online presence and offering convenient travel, online bargains, and home services. This adaptation is expected to intensify with better digital infrastructure and the sustained reliance on online conveniences by consumers. This is likely to accelerate further as digital infrastructure improves and consumers continue to rely on online services.

Challenges

Lack of Transparency

Despite showing promise, the growth of the South Africa Used Cars Market encounters various obstacles. These include intricate regulations, evolving standards, and limitations. Also, guaranteeing the dependability and quality of used cars is a significant worry for buyers and sellers alike. In addition, the rise of electric vehicles presents a challenge demanding adaptation and ingenuity in the South Africa Used Cars Market.

Impact of Escalating Geopolitical Tensions on South Africa Used Cars Market

Intensifying geopolitical tensions may have a significant impact on the South Africa Used Cars Market. Further uncertainty can lead to currency devaluation, affecting imports. Trade restrictions may limit consumer choice by limiting the availability of certain vehicles. In addition, the increase in global oil prices due to geopolitical instability may deter consumers by increasing operating costs. Additionally, geopolitical conflicts can disrupt the supply chain, cause delays in vehicle introductions, and impact market availability. For example, tensions with key trading partners such as China or Europe could disrupt the South African automobile supply chain. Together, these factors may reduce consumer confidence,  purchasing power, and overall growth of the South Africa Used Cars Market.

South Africa Used Cars Market

Segmental Coverage

South Africa Used Cars Market – By Vehicle Type

On the basis of vehicle type, South Africa Used Cars Market is divided into Hatchbacks, Sedans, Sports Utility Vehicles (SUVs), and Multi-Purpose Vehicles (MPVs) segments. The SUV vehicle type is emerging as an important segment in the South Africa Used Cars Market. The SUVs segment’s dominance is due to the proliferation of vehicles offering more features, higher ground clearance, and better safety features. Consumers are attracted to SUVs for their versatility and spacious interiors that can accommodate large family members and provide ample cargo space. The popularity of the SUV vehicle type is growing further with the model range offered at competitive prices in the Used Car Market.

South Africa Used Cars Market – By Fuel Type

Based on fuel type, South Africa Used Cars Market is divided into Gasoline and Diesel segments. Diesel engines' improve fuel economy, longer lifespan, and reduce carbon dioxide emissions over gasoline engines. For long-distance driving and business use, diesel vehicles are especially preferred because they offer higher mileage and long-term cost benefits. Also, the diesel fuel type dominance in the South Africa Used Car Market can be attributed to the availability of diesel fuel and the preference for robust performance in a variety of terrains.

South Africa Used Cars Market – By Booking Type

Based on fuel type, South Africa Used Cars Market is divided into Online and Offline segments. The offline booking type is the largest in South Africa's Used Car Market. The offline booking type remains dominating because of factors such as the tangible nature of physical inspections, the availability of immediate purchasing choices, and the trust established through direct seller-buyer interaction. Despite increasing digitalization and the rise of Internet marketplaces, many South African buyers still prefer the security and dependability of buying used automobiles from offline dealerships and private sellers. The trend is especially significant in areas where internet adoption and digital literacy are still growing.

South Africa Used Cars Market – By Vendor Type

Based on vendor type, South Africa Used Cars Market is divided into Organized and Unorganized segments. The unorganized vendor type is a larger segment in the South Africa Used Car Market. Due to the large number of independent sellers and small-scale dealers operating outside of official dealership structures, this group represents the majority. The unorganized segment's dominance is mostly due to accessibility, flexible conditions of negotiation, and reduced pricing. Because of the apparent cost reductions and the range of possibilities, many customers choose to buy from these suppliers. On the other hand, the organized segment, which consists of well-known dealerships and certified pre-owned programs, makes up a smaller share of the market and is primarily attractive to consumers who are looking for warranty promises and dependability.

Competitive Landscape

Major players in the South Africa Used Cars Market include Carmag, Autotrader, Toyota, Volkswagen, Ford, BMW, Mercedes-Benz, We Buy Cars, Automart, and Carshop. To further enhance their Market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Vehicle Type

• Hatchbacks

• Sedans

• Sports Utility Vehicles (SUVs)

• Multi-Purpose Vehicles (MPVs)

By Fuel Type

• Gasoline

• Diesel

By Booking Type

• Online

• Offline

By Vendor Type

• Organized

• Unorganized

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Africa Used Cars Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising cost of new cars
         2. Shifting consumer preferences
         3. Improved quality and reliability of used cars
         4. Growth of online used car platforms
      2. Restraints
         1. Lack of transparency
         2. Stigma around used cars
      3. Opportunities
         1. Increasing demand for personal mobility
         2. Economic factors
      4. Challenges
         1. Economic downturns
         2. Rising prices of used cars
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. South Africa Used Cars Market: Marketing Strategies
5. South Africa Used Cars Market: Pricing Analysis
6. South Africa Used Cars Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Hatchback
         2. Sedan
         3. Sports Utility Vehicle (SUV)
         4. Multi-Purpose Vehicles (MPVs)
         5. Others
      2. By Fuel Type
         1. Gasoline
         2. Diesel
         3. Others
      3. By Booking Type
         1. Online
         2. Offline
      4. By Vendor Type
         1. Organized
         2. Unorganized
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Used Cars Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
8. South Africa Used Cars Market: Import & Export
9. Impact of Escalating Geopolitical Tensions on South Africa Used Cars Market
10. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)

10. 11. Other Prominent Players
11. Key Strategic Recommendations
12. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Country
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       South Africa Used Cars Segmentation

Figure 2       South Africa Used Cars Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       South Africa Used Cars Market Size, By Value (USD Billion), 2019–2030       

Figure 5       South Africa Used Cars Market Share, By Vehicle Type, By Value, 2019–2030

Figure 6       South Africa Used Cars Market Share, By Fuel Type, By Value, 2019–2030    

Figure 7       South Africa Used Cars Market Share, By Booking Type, By Value, 2019–2030

Figure 8       South Africa Used Cars Market Share, By Vendor Type, By Value, 2019–2030

List of Tables

Table 1 South Africa Used Cars Market Size, By Value (USD Billion), 2019–2030

Table 2 South Africa Used Cars Market Size, By Vehicle Type, By Value, 2019–2030

Table 3 South Africa Used Cars Market Size, By Fuel Type, By Value, 2019–2030

Table 4 South Africa Used Cars Market Size, By Booking Type, By Value, 2019–2030

Table 5 South Africa Used Cars Market Size, By Vendor Type, By Value, 2019–2030

Table 6 Carmag Company Overview

Table 7 Carmag Financial Overview

Table 8 Autotrader Company Overview

Table 9 Autotrader Financial Overview

Table 10      Toyota Company Overview

Table 11      Toyota Financial Overview

Table 12      Volkswagen Company Overview

Table 13      Volkswagen Financial Overview

Table 14      Ford Company Overview

Table 15      Ford Financial Overview

Table 16      BMW Company Overview

Table 17      BMW Financial Overview

Table 18      Mercedes-Benz Company Overview

Table 19      Mercedes-Benz Financial Overview

Table 20      We buy cars Company Overview

Table 21      We buy cars Financial Overview

Table 22      Automart Company Overview

Table 23      Automart Financial Overview

Table 24      Carshop Company Overview

Table 25      Carshop Financial Overview