Used Car Market Poised to Dominate as Economic Headwinds Persist

South Africa’s automotive landscape is set for a pivotal third quarter, with the used car market firmly maintaining its dominance over new vehicle sales, according to industry veteran Clive Lazarus, Director at Park Village Auctions.

“While new car sales are showing signs of life, the real action is still in the used market. Buyers are savvy and value-driven—and auctions are where the best deals are found,” says Lazarus. “For those who know where to look, Q3 is shaping up to be a golden opportunity for upgrading your wheels without breaking the bank.”

Despite new vehicle sales posting an impressive 22% year-on-year gain in May 2025, according to Naamsa, industry experts suggest buyer interest remains strong in the used market.

Lazarus attributes this trend to persistent affordability pressures. “Easing inflation and a recent interest rate cut to 11% has enabled more household spending power, but consumers remain cautious, prioritising value and making every Rand count,” he explains.

However, global risks loom large. Middle East tensions threaten to trigger sharp increases in fuel prices. “Even in this challenging environment, acquiring a vehicle now, through bank-repossessed stock, can be a strategic move,” advises Lazarus.

Auctions offer unique advantages. The vehicles (often repossessed or corporate fleet returns) are frequently newer models, sometimes still under warranty. “The competitive bidding environment means buyers can secure vehicles at prices well below those found at traditional dealerships”, notes Lazarus.

The significant savings mean buyers can often upgrade to newer models or higher specifications.

As ever, Lazarus reminds the public that the key to “snagging a deal” is preparation. He says, “Attend a viewing, inspect the vehicles, research their retail value. Then calculate affordability, considering buyers’ commission and VAT so that you know your threshold for bidding.”

The company has scheduled three national webcast vehicle auctions for July:

• Johannesburg stock, Tuesday, 8 July at 10:00. Website reference 1890.
• Durban stock, Wednesday, 16 July at 10:00. Website reference 1896.
• Gqeberha (PE) and Bloemfontein stock, Thursday, 17 July at 10:00. Website reference 1897.

“In a market where every rand counts, auctions offer buyers the chance to drive away with real value,” concludes Lazarus.

ENDS