JOHANNESBURG – TransUnion’s Vehicle Price Index (VPI) shows that price of used cars has greatly increased in South Africa.
“While TransUnion’s recent VPI reports indicated a growing preference among consumers for affordable, reliable and reasonably young used cars, the trends recorded in the latest VPI are suggestive of an about-turn that may see new cars purchases regaining some of their lost popularity” said TransUnion.
“The surprisingly affordability of new cars is symptomatic of slowing sales- as manufacturers and dealers go out of their way to tempt buyers by offering discounts, preferential interest rates and trade assistance. Manufacturers have also been able to steady their prices thanks to unexpectedly low inflation and interest rates- given the country’s delicate economic condition.”
Last quarter’s report stated that a slow-down in the VPI increase on brand new vehicles and this quarter is the exact same thing, continuing the trend toward greater affordability in the new car market.
TransUnion’s VPI reported that the value of financing has stayed the same since last quarter’s VPI, with 41% being financed below R200 000, and the average used car loan becoming approximately R234 000.