Best time to buy and sell a car in South Africa

The best time to buy a car in South Africa is at the end of the year, while the best time to sell is at the start.

Timing your car transactions strategically can see you score a deal that would have been all but impossible to find a few months prior, or get more for your ride than you would have if you waited just a couple of weeks longer.

According to Rikus Blomerus, Chief Marketing Officer at WeBuyCars, buying a used car towards the end of the year is considered advantageous because new vehicle manufacturers want to avoid carrying inventory into the next year.

Therefore, they issue various incentives for dealers to sell more units, resulting in more trade-ins and available vehicles in the market.

Conversely, when the year starts again dealers want to get fresh wheels onto their showroom floors and are more willing to do better trade-ins and purchases.

“This makes the end of the year a good time to buy and the beginning of the year a good time to sell,” said the expert.

Not so black and white

It’s not only the time of the year that dictates when it’s best to sell, as demand for certain types of vehicles tends to rise and fall depending on seasonal factors.

For example, SUVs are often in high demand during school holiday periods when families seek spacious vehicles for travel, whereas the beginning of the calendar year generally welcomes a higher demand for entry-level vehicles, ideal for matric leavers and those starting tertiary education or a first job.

Regional market dynamics play a major role, too.

Urban areas typically experience more dynamic supply and demand forces due to higher population density and market activity.

Thus, a certain vehicle may only be popular for a short amount of time in Joburg before buyer tastes shift, as opposed to enjoying consistent appetite in smaller, more rural areas.

Vehicle depreciation should also be taken into account.

Each vehicle follows a unique depreciation curve, with some brands losing their value faster than others. Vehicles that are known for reliability and strong brand reputation usually hold their value better over time, while those with less ubiquitous badges and more mechanical issues lose their shine quickly.

“It is crucial to assess the market valuation of your vehicle and understand your financial standing to sell when the equity (sales price minus outstanding finance) is favourable,” said Blomerus.

It is, however, important to note that these trends are not solely influenced by seasonal factors but also by broader economic indicators.

Interest rates, consumer confidence levels, and the dynamic balance of supply and demand all play major roles in shaping the pre-owned car market. Understanding and monitoring these economic indicators is essential for making informed decisions when buying or selling a used vehicle.

“While specific periods of the year may present better deals on pre-owned cars, it is essential for buyers to be financially ready, conduct thorough research, and feel prepared before committing to a purchase,” said Blomerus.

“When armed with this knowledge, consumers can confidently navigate the complexities of the pre-owned car market, ensuring they are well-prepared to capitalise on market opportunities and achieve their desired outcomes.”