When buying or selling a car in South Africa, timing is everything.
If you want to get the most value out of your deal, you need to know the ins and outs of the industry, which includes understanding market trends, dealership practices, and consumer demand.
Best time to buy
The end of the year is widely considered the best time of the year to buy a new car, according to several industry experts.
WeBuyCars Chief Marketing Officer Rikus Blomerus and Naked co-founder Ernest North share this sentiment.
According to Blomerus, buying a car near the end of the year makes sense because new vehicle manufacturers want to avoid carrying inventory into the following year.
As a result, dealers are incentivised to sell more units, providing buyers with more diverse and better options.
North said that dealers also want to depart with their 2023 demo vehicles before the end of the year to make room for 2024 models.
He explains that this makes these high-demand vehicles more readily available towards the end of the year.
The final days on the calendar are also when many dealerships push to reach annual sales targets, and these opportunities can give buyers more negotiating power when buying new wheels.
Best time to sell
When it comes to selling your current vehicle, the timing doesn’t quite line up for South Africans looking for trade-in deals.
Blomerus said that the beginning of the year is the best time to sell your vehicle since dealers want to freshen up their showroom floors.
This means they are generally more willing to offer better trade-ins or purchase prices at the beginning of the year to move stock.
North also said that buying a new car at the beginning of the year makes sense since an end-of-year registration would essentially render the vehicle a year older, lowering its resale value in the future.
This also assists South Africans who received a December bonus, as they will have additional cash to put down on the deposit.
What to consider when trading in
Figuring out how to get the most value when selling your current car and buying a new one is tricky, especially since the best time to sell does not line up with the best time to buy, and most South Africans require the capital from selling their current wheels to buy the next set.
Pre-owned vehicle retailer Motus Select suggests four key considerations that help South Africans determine when to trade in their vehicles to get the best value:
- Time of the year
- Break-even point
- Warranty and service plans
- Model lifecycle
Much like the advice given by Blomerus and North, Motus recommends selling a vehicle towards the end of the year before it adds another year to its age, as this helps to improve its resale value.
Motus also says that South Africans should only sell their vehicles after they have crossed the break-even point. That is the point at which the settlement amount is lower than the trade-in value of the vehicle.
Trading in your vehicle while it is still in warranty or on an active service plan will also improve the value you can get for it.
The warranty and service plan give a potential new owner peace of mind, meaning they will be willing to part with more cash for the vehicle.
Finally, Motus suggests South Africans should trade in their wheels before a facelift or new generation of the same model arrives in the market.
This is because once a new generation hits the shelves, the previous model can lose its appeal.
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