End-of-Year Market Outlook: A Time for Strategic Car Buying

As we approach the end of 2024, Park Village Auctions, a leading auction house with over forty years of experience selling bank-repossessed vehicles, offers insights into the South African car market and its implications for consumers.

“This year has been challenging for the automotive industry,” says Clive Lazarus, Director of Park Village Auctions. “High interest rates, fluctuating exchange rates, and global economic uncertainty have affected car sales, but savvy consumers can still find opportunities.”

The automotive sector has shown mixed results in 2024. Although the second half revealed a modest recovery, persistent issues like inflation and declining export demand have hindered overall progress. NAAMSA reported a 5.8% decline in domestic new vehicle sales by September. Additionally, export markets experienced a 19.7% drop, affected by weaker global demand and regulatory changes.

Manufacturers face significant challenges as well. Toyota South Africa Motors highlighted concerns about market exit due to policy uncertainty and rising costs, which could impact vehicle availability and pricing.

Lazarus warns that rising production costs may lead to higher prices for new and used cars with fewer available options. Therefore, he advocates for car auctions as a beneficial alternative:

Affordability: Repossessed vehicles can provide significant savings over new models, allowing consumers to maximise their budgets.

Quality Options: Many repossessed vehicles are well-maintained and come with existing warranties or service plans, ensuring buyers’ peace of mind.

Investment Potential: As new car prices are expected to rise further, selecting strategically chosen second-hand vehicles can be a smart financial decision.

“Don’t just take my word for it—come see for yourself,” invites Lazarus, encouraging prospective buyers to attend PVA’s final 2024 car auctions on December 3rd, 4th, and 5th. More information can be found at www.parkvillageauctions.co.za under references 1724, 1730, and 1731