It took, on average, 35 days to sell a used car in South Africa in 2024, depending on the month.
January was the slowest month for sales at an average of 39 days per transaction.
Meanwhile, September and December were the quickest at an average of 33 days each.
These insights were revealed in used-car platform AutoTrader’s latest Annual Car Industry Report.
Stock Velocity
Stock velocity (SV), or Time to Sell, measures how quickly vehicles are sold within a set timeframe, and directly impacts a dealership’s ability to turn over inventory and manage cash flow, explains AutoTrader CEO George Mienie.
A faster SV means cars sell more quickly, reducing the time they sit on the lot and minimising costs whilst simultaneously increasing profit throughput; and vice versa.
The figures is impacted by several factors, chief of which are pricing, brand popularity, and current market conditions.
It’s vital for a dealer to strive for a high SV as it means its inventory remains fresh and aligned with consumer demand.
“In 2024, dealers with a healthy stock velocity score were better positioned to capitalise on market opportunities, leading to improved business outcomes,” said Mienie.
“On average, AutoTrader noticed that dealerships who actively monitored their stock velocity
metrics and adjusted their inventory, achieved quicker churn as a result of balancing the scales
of supply and demand.”
The average selling time for a used car in 2024 equated to 35 days – 2 days faster than in 2023 – indicating a healthier appetite for pre-owned vehicles as market conditions improved during the year.
This is corroborated by credit agency TransUnion’s Vehicle Pricing Index.
TransUnion found that used-car prices declined by 2.8% during the final quarter of 2024, which resulted in the new-to-used finance ratio rising from 1.23 to 1.56 year-on-year.
In layman terms, this means that 1.23 used vehicles were financed for every one new vehicle in Q4 2023, while 1.56 used vehicles were financed for every one new one in Q4 2024.
“The demand for used vehicles continues to grow,” said Marcia Mayaba, Sales Vice President, Auto Information Services at TransUnion South Africa.
The SV per month over the course of 2024, as provided by AutoTrader, was:
| Month | Time to sell |
|---|---|
| January | 39 days |
| February | 36 days |
| March | 35 days |
| April | 36 days |
| May | 35 days |
| June | 35 days |
| July | 35 days |
| August | 36 days |
| September | 33 days |
| October | 34 days |
| November | 34 days |
| December | 33 days |
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