How buying habits in South Africa have changed over the last decade

Car buying behavior and new vehicle prices aren’t what they used to be, especially in South Africa. The days of using car magazines and driving from dealership to dealership to do research almost seem a thing of the past. The digital landscape and the economic climate have changed the way people conduct research—everything is online, so why waste fuel? Manufacturers are also starting to realise this. With inflation on the rise, it seems pre-owned cars are now taking centre stage, forcing new car pricing and products to compete with their pre-owned counterparts.

  How Car Buying Habits Have Changed in South Africa  

The automotive industry in South Africa has experienced both steady and steep fluctuations. Factors such as inflation, luxury tax (Ad Valorem Excise Duty), and uncompetitive salaries have deterred people from investing in cars that exceed the tax threshold, which is 5.25% on vehicles priced over R250,000. New car prices have even affected entry-level and mid-level segments. For instance, what was once a decent family vehicle in the '90s is now considered a high-end luxury vehicle 30+ years later. 

Another influence on purchasing power is the total cost of car ownership. Gone are the days when people could keep up with socio-economic trends and shifts.

The Total Cost of Ownership

First and foremost, people don’t consider the total cost of ownership until they’ve made the purchase - financial stresses like car insurance, fuel consumption, and finance are just a few. While living standards continue to increase, people cannot keep up with motoring standards either. For instance, if someone is planning to buy a pre-owned car, they’ll have to consider all the extras like service plans, extended warranty, and insurance. Consider these as a financial and vehicle protection because once off repairs at third-party workshops will just cost a lot more out-of-pocket. 

Top-Selling Cars in South Africa

Car buyers clearly have a preference, even if they fall short of the cost. In the first quarter of 2024, the top 10 brands in South Africa were revealed. Some of these models have remained at the top through May, June, and July. 

Here are the top models that were purchased by South Africans:

1. Toyota Hilux
2. Ford Ranger
3. Toyota Corolla Cross
4. VW Polo Vivo
5. Isuzu D-Max
6. Suzuki Swift
7. Toyota Starlet
8. Hyundai Grand i10
9. Nissan NP200
10. Toyota HiAce

Out of these top 10, the Hyundai Grand i10 has the lowest price at R239,500, and the Toyota Hi Ace has the highest price at R543,900. 

The Future Ahead

More people are researching vehicles online, reducing walk-in visits to dealerships. The sales team now has to compete with the vast amount of digital information readily available. Car brands have even introduced VR and 360-degree showrooms on their websites. This has become a lot more convenient and provides an enhanced personalised experience. Regardless of whether customers buy new or pre-owned cars online or in person, value-for-money will always be a priority.