Market Overview

The South Africa used car market size reached USD 4,736.18 Million in 2024. The market is projected to reach USD 9,428.27 Million by 2033, exhibiting a growth rate (CAGR) of 7.95% during 2025-2033. Key growth drivers include affordability, shifting consumer preferences toward value-buying, the rise of digital sales platforms, and an increasing demand for SUVs and low-cost vehicles. This market evolution reflects a shift in accessibility and practicality among vehicle buyers in South Africa. For comprehensive insights visit the South Africa Used Car Market.

How AI is Reshaping the Future of South Africa Used Car Market

• AI-driven digital platforms are transforming consumer behavior by providing greater transparency in vehicle information, price comparisons, and vendor ratings, facilitating easier decision-making and more aggressive pricing competition.

• The growth of Certified Pre-Owned (CPO) programs is supported by AI-powered vehicle inspections and warranty management systems that enhance reliability and consumer confidence.

• AI-enhanced maintenance record analytics help buyers assess vehicle quality and predict repair needs, thereby supporting higher market trust and growth.

• Companies like Auto24 South Africa leverage AI and digital innovation to offer flexible vehicle financing and rent-to-own options, expanding access to a broader customer base.

• AI-enabled supply chain optimization streamlines vendor inventory management, ensuring better availability of high-demand vehicles like SUVs and commercial pickups.

• Government and industry collaborations are increasingly incorporating AI tools to improve regulatory compliance and vehicle documentation standards, fostering a more professionalized used car market.

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Market Growth Factors

In 2025, the total market size of used cars was estimated to be US$17.87 billion, with forecasts predicting the market will have a compounded annual growth rate (CAGR) of over 10%. Used car sales in South Africa show the rise in demand with a 16.4% rise in September year-on-year. The top selling vehicle is the Ford Ranger, closely followed then by the Volkswagen Polo and the Toyota Hilux. South Africans generally prefer bakkies that are reliable and hatchbacks at a low cost, which leads to a slight decrease of average distance driven and indicates newer cars sold. Monthly transaction totals are presently in the billions, indicating continued consumer confidence despite fluctuations.

High prices for new cars are another factor driving up the market for used cars. These prices tend to be high because of import taxes, rising exchange rates and higher ad valorem taxes, which increase the difference between new and used vehicle prices. In addition, high inflation and lower purchasing power have reduced what the average household could spend on a new car. These factors led to an important increase of used car sales over new car sales. Consequently, prospects have shifted towards price and reliability, leading to a growing demand for pre-owned and used cars such as SUVs and hatchbacks.

Digital platforms and formalized vendors are changing the landscape of the used car market and adding transparency and accessibility to buyers; digital marketplaces such as AutoTrader and Cars.co.za and manufacturer-backed pre-owned car programs provide buyers with pre-sale vehicle inspection reports and warranties that create transparency in the second-hand car market. Organized sales have outpaced the unorganized market as customers seek quality and trust. Newer homegrown Chinese brands are also gaining prominence in the used car sales market, appealing to customers with their low price. Hybrid and electric vehicles remain a minor segment of the used car market, but are beginning to enter this arena.

Market Segmentation

Vehicle Type Insights:

• Hatchback
• Sedan
• Sports Utility Vehicle
• Others

Vendor Type Insights:

• Organized
• Unorganized

Fuel Type Insights:

• Gasoline
• Diesel
• Others

Sales Channel Insights:

• Online
• Offline

Regional Insights:

• Gauteng
• KwaZulu-Natal
• Western Cape
• Mpumalanga
• Eastern Cape
• Others

Recent Development & News

• August 2025: Ford South Africa continues to lead the used car market with the Ranger bakkie as the top model, reflecting strong nationwide consumer demand for durable and practical vehicles. This leadership highlights the importance of local manufacturers in shaping market trends and sustains steady market growth.

• June 2025: Auto24 South Africa has expanded its digital platform services across Johannesburg and Cape Town, pioneering a rent-to-own strategy that integrates expert vehicle inspections and flexible financing. Their emphasis on electric vehicles and green driving promotes sustainability and aligns with future automotive trends.

• October 2025: The used car market is benefiting from a rise in digital sales, with greater accessibility and enhanced buying behaviors noted. This trend is supported by evolving platforms and heightened competition, creating positive momentum in vehicle acquisition and ownership.

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