The South African pre-owned car market showed remarkable resilience in 2025, following up on its strong performance with a positive start to the new year that saw increases in month-on-month and year-on-year growth.
This strong performance is not a once-off either, as consistent growth in the sector is expected to continue and reach over R300 billion over the next five years.
According to the latest data from AutoTrader, 34,452 used cars were sold in January 2026, as every one of the top ten used models recorded year-on-year gains.
This number marks a 12.07% month-on-month increase from December 2025’s 30,742 units sold, as well as an impressive 11.28% year-on-year increase from January 2025’s 30,961 units.
These figures have set the tone for the year, showing that the used market is ready for another strong year, should it sustain this growth and carry its momentum forward.
George Mienie, CEO of AutoTrader, said, “Starting the year with double-digit month-on-month and year-on-year growth, especially off a strong 2025 base, is a clear signal of sustained consumer demand.”
The total value of used cars sold last month reached R14.32 billion, representing a month-on-month increase of 11.05% and a year-on-year increase of 13.80% from R12.59 billion in January 2025.
Market research firm Mordor Intelligence attributed this steady growth to lowered new-car affordability, an improvement in online car buying operations, and the organisation and professionalism of dealers.
It also noted the government’s efforts to curb illegal imports and promote original equipment manufacturer (OEM) certified programs, which shape supply quality and competitive dynamics.
Growth expected to continue
The total size of South Africa’s used car market is expected to reach R220 billion in 2026, and is forecast to reach R302 billion by 2026, at an average growth of 6.64% annually.
A major factor driving buyers to the pre-owned market is the high prices and fast depreciation associated with buying new cars.
Mordor Intelligence reports new vehicle sales slipped 3.0% in 2024 to 515,712, reflecting consumers’ cost pressures, with ad valorem taxes intensifying price gaps and pushing more households towards the used market.
Wage stagnation and the country’s high debt ratio place more pressure on disposable income, further reinforcing the appeal of pre-owned cars.
Financial institutions are supporting this shift, allowing motorists to finance used vehicles over longer periods or using subscription or rent-to-own models to tailor loans to already stretched household budgets.
The rising popularity of online pre-owned car platforms is also driving used sales as more South Africans place their trust in remote transactions.
Mordor Intelligence explains that e-retailers are scaling operations by offering transparent pricing, instant payment, and doorstep delivery that outpace traditional dealer growth.
These are offerings that convert consumer convenience into sustained market share gains while compressing discovery timelines.
Brand-backed initiatives that cover used vehicles under a certain age with warranties, roadside assistance, and service plans increase the appeal of buying used cars.
These programmes are intended to keep buyers inside authorised networks, support resale values, and help to anchor the local used car market’s shift from unorganised dealerships to more organised channels.
While all of these factors drive South African car buyers towards the used market, some factors may negatively affect this sector.
High tariffs and ad valorem taxes on light-vehicle imports may constrain the legitimate supply of vehicles in the used market and fuel the grey-import corridor, which is estimated to bring in 30,000 units annually.
US tariffs on South Africa’s exports place a strain on supply-chain resilience, clouding the forecast for the local used-car market.
Finally, the South African Reserve Bank often highlights geopolitical risks that pressure the rand and, by extension, the South African used car market.
Mordor Intelligence noted a historically unstable rand, coupled with infrastructure gaps for electric vehicles, tempers short-term growth but does not alter the sector’s long-range momentum.
Loading ...
