Credit bureau TransUnion has published its Vehicle Pricing Index for Q3 2019, showing the types of vehicle brands that attract the most financing, both new and used.
The group said that the South African car market had another challenging quarter, with a marginal drop in petrol prices and an interest rate cut doing little to reinvigorate the vehicle market.
It added that stagnant new vehicle sales will likely continue into the second half of the year as dealers push sales through guaranteed buy-back options and marketing initiatives to suit consumer pockets.
This means that consumers are in a position of power when purchasing new or used vehicles with price increases well below inflation for the past two years as manufacturers try to stimulate the market, it said.
“The percentage of cars (new and used) being financed below R200,000; R200,000 to R300,000; and over R300,000 has been fairly consistent over the last six quarters,” it said.
“This shows that consumers’ purchasing power and their ability to purchase more expensive vehicles are not changing.
“Petrol price changes, interest rate changes, slower price increases, dealer incentives and lower inflation are not driving consumers to purchase more expensive cars. Consumers are still opting for less expensive entry-level vehicles.”
Used vs new
TransUnion said that finance houses are currently financing 2.26 used vehicles for every new vehicle purchased.
The group said it has also seen a shift back to vehicles priced under R200,ooo as consumers continue to feel the strain on disposable income.
When it comes to the types of cars consumers are buying, TransUnion said that Toyota and Volkswagen are dominant, with the two brands sharing the top two spots in both new and used sales.
Together they have now captured more than 40% of the new and used passenger financed volumes.
This aligns with recent AutoTrader data which shows that the two manufacturers feature frequently on the list of most-sold secondhand cars on its platform.
AutoTrader said the Volkswagen Polo was its top-selling vehicle, selling 88% of its total stock at an average price of R212,748, with an average year model of 2015 and an average mileage of 53,360km.
In second, the Volkswagen Polo Vivo sold 90% of its total available stock in the last year, with an average selling price of R161,734, an average mileage of 43,013km and an average year model of 2017.
The Toyota Hilux (average selling price of R318,755) and the Toyota Fortuner (R339,547) were named as the fourth and seventh bestselling secondhand cars respectively.