Used cars are holding their value for longer in South Africa

Used vehicles are holding their value for longer in South Africa, according to the Lightstone Used Vehicle Value Retention Index.

“The Value Retention Rate for one-year-old and four-year-old used passenger vehicles has been climbing since 2012 and the Lightstone Used Vehicle Value Retention Index reached an all-time high for one-year-old vehicles in October 2021 at 92.91%,” said Lightstone.

As shown in the graph below, the retention rate for one-year-old vehicles rose sharply between 2015 and 2018 – previously peaking in December 2018 at 92.86%, and rising strongly over the past year.

4-year-old cars

Lightstone said the same trend can be seen for four-year-old vehicles in the local used market – but with “more pronounced highs and lows”.

“Annual inflation of the Value Retention Rate for four-year-old vehicles is currently at 4.75%, while the annual inflation for one-year-old vehicles is currently only 1.43%,” it said.

The graph below shows the Value Retention Rate for four-year-old vehicles rising strongly from the start of 2021.

Good buys

The findings from Lightstone follow recent reports on TopAuto about which used bakkies hold their value the best in South Africa.

The reports were based on data shared by AutoTrader, and focused on Toyota and Ford models.

Two standout models were the 2019 Toyota Hilux 2.8 GD-6 Double Cab Raider Auto and the 2020 Ford Ranger Raptor 2.0 Bi-Turbo Double Cab 4×4.

According to the AutoTrader data, a used 2019 Toyota Hilux 2.8 GD-6 Double Cab Raider Auto has only lost an average 2.6% of its value.

This was calculated by looking at its price when new, and the current average price for second-hand models.

The 2020 Ford Ranger Raptor 2.0 Bi-Turbo Double Cab 4×4 produced an equally-impressive result – losing an average of 0.7% of its value.