Used car sales improved during the third quarter of 2023. With 119 434 cars listed for sale on AutoTrader and the total sales reaching R39 644 822 598 in Q3 2023, it’s evident that this period reigns supreme.

Q4 2023 showed promising sales but fell short of the Q3 figures by R3b. Nonetheless, steady growth in listings was observed from 2022 to 2023, averaging a quarterly increase of 3% year-on-year (YoY).

Interestingly, while Q1 boasted the highest listings growth between 2022 and 2023 (a YoY increase of 4.6%), it recorded the least total sales in both years. Conversely, Q4 2022 and 2023 witnessed lower listing figures but secured the second and third-highest total sales, respectively.

The uptick in 2023 compared to 2022 suggests a gradual economic recovery post-Covid-19 turbulence. Car sales plummeted in 2020, but the sector has since shown signs of resurgence, albeit gradual.

Various factors contribute to increased sales towards the year’s end. Many buyers begin saving for deposits early in the year, culminating in higher purchasing power in the third and fourth quarters. Additionally, dealerships may offer more incentives or discounts as the year progresses, encouraging higher listing rates.

Despite inflation, the retail price index for used cars surged by over 5% from 2022 to 2023. Notably, used vehicle prices remained below South Africa’s consumer price index throughout the year, except for January, which saw a 1.4% increase.

Source: Nikki Chennells

Source: AutoTrader Used Car Data: 1 January – 31 December 2023