How Much Is A Used Car In south Africa

What is a Used Car?

A used car, a pre-owned vehicle, or a secondhand car, is a vehicle that has previously had one or more retail owners. 

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Why are used cars so expensive in South Africa?

A number of taxes are levied on imported vehicles. Shockingly, the final tax that’s payable can be as high as 45% of a car’s total price. Cars assembled in South Africa don’t necessarily escape these taxes either, because they’re also levied on imported parts and components.

Why is used car prices so high in South Africa?

The demand for used cars has exploded since the start of the pandemic, thanks to a global semiconductor and microchip shortage, which has negatively impacted the availability of new cars. This has also led to soaring prices for second-hand cars, and now insured motorists could be paying the price.

Is 2021 a good year to buy a car in South Africa?

The inflation rate for new vehicle prices steadily declined in 2021, seeing a move from 9.6% in Q4 2020 to 2% at the end of Q4 2021. During the same time, used-car prices shot up – with the VPI for these vehicles going from 2.9% in Q4 2020 to 7% at the end of Q4 2021.

Are cars overpriced in South Africa?

Going purely by the new-car numbers and middle-class salaries, South Africa’s car market does indeed appear to be overpriced by nearly 100%

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