Headline image by Park Village Auctions.
A strong start to the year for both new and used car sales is also good news for local auction houses, as South Africans look for affordable market alternatives.
Last year represented a year of strong new car sales, with nearly 600,000 units sold throughout 2025 – the highest figure in more than ten years.
In January, more than 50,000 new cars were sold in South Africa, a 7.5% increase from last year, while used cars in January reached nearly 34,500 units, according to AutoTrader.
This represents an 11% increase, led by strong sales of bakkies like the Ford Ranger and Toyota Hilux, supported by familiar favourites from VW.
According to Clive Lazarus of Park Village Auctions, these figures bode well for the auction market as well.
Noting dominance by value brands like Chery, GWM, Toyota and Suzuki, he explained that Gen Z and Millennials are driving a high demand for hybrids.
Lazarus added that budget buyers still prefer compact petrol models, in part thanks to easing interest rates.
“This retail boom is supercharging auctions with bank repos and fleet returns for savvy buyers,” he said.
Demand remains high for quality used vehicles, especially newer models that are still under warranty.
“Auctions deliver these at about 20% below dealer values,” noted Lazarus.
He explained that the used-to-new ratio remains at 3-to-1, which keeps used stock high, sales volumes robust, and keeps affordability intact.
“Auctions offer the edge. Buyers can snag VW Polos, Toyota Corollas, Hilux bakkies or Rangers within tight budgets,” noted Lazarus.
“Private buyers get dream cars at a low cost; commercial fleets lock in reliable logistics hauliers.”
Online auctions and bidding processes have also made buying a used car on auction more convenient, adding further appeal.
“Online bidding eliminates geographic limits, so buyers can source from anywhere in the country,” concluded Lazarus.
Value for money
South African buyers are not only attending auctions to buy a car to drive off the lot, but also for opportunities and cost-saving.
Some buyers, including mechanics, enthusiasts and parts merchants, attend auctions looking for salvage vehicles, buying these at a fraction of retail cost.
According to GoBid COO Gert Labuschagne, salvage auctions are booming in South Africa, adding that these vehicles are not necessarily beyond repair.
Vehicles sold at salvage auctions can range from slightly accident-damaged to repossessed or even sold “as is” on professional auction platforms on behalf of owners.
Salvage vehicles are categorised to identify their condition.
A Code 2 vehicle is pre-owned, or used, and still repairable. A Code 3 has been rebuilt or is permanently unfit, while a Code 3A is to be scrapped for parts only. A Code 4 vehicle is not for resale and must be demolished.
“In tough economic times, South Africans are looking for affordable vehicle solutions, and salvage auctions give buyers a chance to access vehicles well below retail prices – some in repairable condition, others ideal for parts,” noted Labuschagne.
Salvage auctions play a crucial part in the car insurance and financial ecosystem, helping recover value from vehicles deemed too expensive to repair, while reducing fraud through regulated channels.
South African Institute of Auctioneers (SAIA) COO, Sonja Styger, concurred with what Lazarus noted about online auctions, noting that it adds to the growth in popularity of salvage auctions.
She mentioned that this growth, combined with the rising number of online platforms, makes it possible to find auctions daily, allowing bidders to participate from anywhere in the country.
Labuschagne added that online auctions have opened the doors for anyone to participate on a national scale.
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