South Africa Used Car Market Introduction and Overview
According to SPER Market Research, the South Africa Used Car Market is estimated to reach USD 44.09 billion by 2033 with a CAGR of 10.65%.
The report includes an in-depth analysis of the South Africa Used Car Market, including market size and trends, product mix, applications, and supplier analysis. A used car, often known as a pre-owned vehicle, is a motor vehicle that has had one or more previous owners. A used car, as compared to a new car, which comes directly from the manufacturer or an authorized dealer and has never been registered or used before, has a history of ownership and usually shows some wear and tear. These automobiles are frequently sold through multiple channels, including as dealerships, private sales, auctions, and certified pre-owned programs. The most notable advantage of purchasing a used automobile is cost savings, as used cars are typically substantially less expensive than new vehicles owing to depreciation. Used car purchasers have more choices of makes, models, and years to pick from, making it easier to find a vehicle of their own choice.
- April 2023: Autocheck, a Nigeria-based auto selling and purchasing website, has purchased a majority stake in AutoTager, Egypt's used car marketplace. The acquisition enables Autocheck to strengthen its footprint in South Africa, beginning with Egypt, Africa's second-largest vehicle market. The company currently operates in nine countries throughout Africa.
- September 2022: Carzami Inc., an Egyptian-based online retailer of great used automobiles and vehicle financing, announced the completion of a pre-seed round headed by Contact Financial Holdings, as well as a scalable inventory financing facility, which it intends to use to alter Egypt's used car sector.
Market Opportunities and Challenges
Opportunities- The South African used car market is expanding rapidly, driven by a variety of factors such as rising consumer demand for low-cost vehicles, technological developments, and the rise of organized dealerships. One of the key growth factors is a growing preference for certified and pre-inspected used cars, which provide confidence about the vehicle's quality and reliability. These certificates increase consumer confidence, making it easier for purchasers to choose used cars over new ones. The development of e-commerce and internet platforms is another important aspect driving the used automobile market. Online markets such as Cars.co.za and AutoTrader have made it easier for buyers to compare pricing, examine vehicle listings, and complete transactions without having to visit physical dealerships.
Challenges- Despite its rise, South Africa's used car sector has numerous challenges. Economic challenges such as inflation, fluctuating gasoline prices, and currency volatility have a substantial impact on the affordability of used vehicles. Prices for both new and used cars are rising faster than inflation, making it harder for many customers to purchase vehicles. A major obstacle in this industry is a lack of openness, which generates trust issues for purchasers. Despite the expansion of e-commerce platforms, concerns regarding vehicle history, quality, and potential fraud remain prevalent in online sales. Many consumers are cautious to trust used car dealerships, especially those in the unorganized sector, due to the stigma associated with purchasing used vehicles.
Market Competitive Landscape
The South Africa Used Car Market is a highly competitive arena due to the presence of multiple global and regional companies in the competitive environment. Leading companies in the industry are Al-Futtaim Group, Abdul Latif Jameel Motors, Yalla Motor, Autotrader South Africa, Cars 4 Africa, Carzami, Autochek Africa, AutoTager, Cars45.
Scope of the report:
| Report Metric | Details |
| Market size available for years | 2020-2033 |
| Base year considered | 2023 |
| Forecast period | 2024-2033 |
| Segments covered | By Vehicle, By Body Type, By Fuel Type, By Vendor Type, By Size, By Distribution Channel
|
| Regions covered | Gauteng, Western Cape, KwaZulu-Natal, Eastern Cape, Northern Cape, Limpopo, Mpumalanga, North West
|
| Companies Covered | Al-Futtaim Group, Abdul Latif Jameel Motors, Yalla Motor, Autotrader South Africa, Cars 4 Africa, Carzami, Autochek Africa, AutoTager, Cars45.
|
COVID-19 Impact on South Africa Used Car Market
The COVID-19 pandemic had a huge impact on the South African used car market, influencing both demand and supply dynamics. The lockdowns impacted the traditional car business by forcing showrooms to close, resulting in a dramatic drop in sales during the early stages of the pandemic. With the limits in effect, there were few transactions in the used car market, resulting to a backlog of both new and pre-owned vehicle inventory. Furthermore, the pandemic altered consumer behaviour, with consumers using internet platforms to search for and buy cars. During shutdown periods, digital portals such as AutoTrader saw a rise in searches for used vehicles, indicating a growing interest in second-hand cars as a financially realistic option.
Key Target Audience:
- Price-Conscious Consumers
- First-Time Car Buyers
- Urban Commuters
- Small and Medium-Sized Enterprises
- Rural Buyers
- Tech-savvy Consumers
- Luxury Vehicle Seekers
- Students
- Fleet Buyers
Our in-depth analysis of the South Africa Used Car Market includes the following segments:
| By Vehicle: | ConventionalHybridElectric |
| By Body Type: | HatchbacksSedanSUVOthers |
| By Fuel Type: | PetrolDieselOthers |
| By Vendor Type: | OrganizedUnorganized |
| By Size: | Mid-SizeCompactSUVs |
| By Distribution Channel: | OfflineOnline |
Key Topics Covered in the Report:
- South Africa Used Car Market Size (FY’2024-FY’2033)
- Overview of South Africa Used Car Market
- Segmentation of South Africa Used Car Market by Vehicle (Conventional, Hybrid, Electric)
- Segmentation of South Africa Used Car Market by Body Type (Hatchbacks, Sedan, SUV, Others)
- Segmentation of South Africa Used Car Market by Fuel Type (Petrol, Diesel, Others)
- Segmentation of South Africa Used Car Market by Vendor Type (Organized, Unorganized)
- Segmentation of South Africa Used Car Market by Size (Mid-size, Compact, SUVs)
- Segmentation of South Africa Used Car Market by Distribution Channel (Offline, Online)
- Statistical Snap of South Africa Used Car Market
- Expansion Analysis of South Africa Used Car Market
- Problems and Obstacles in South Africa Used Car Market
- Competitive Landscape South Africa Used Car Market
- Impact of COVID-19 and Demonetization on South Africa Used Car Market
- Details on Current Investment in South Africa Used Car Market
- Competitive Analysis of South Africa Used Car Market
- Prominent Players in the South Africa Used Car Market SWOT Analysis of South Africa Used Car Market
- South Africa Used Car Market Future Outlook and Projections (FY’2024-FY’2033)
- Recommendations from Analyst
1. Introduction
1.1. Scope of the report
1.2. Market segment analysis
2. Research Methodology
2.1. Research data source
2.1.1. Secondary Data
2.1.2. Primary Data
2.1.3. SPER’s internal database
2.1.4. Premium insight from KOL’s
2.2. Market size estimation
2.2.1. Top-down and Bottom-up approach
2.3. Data triangulation
3. Executive Summary
4. Market Dynamics
4.1. Driver, Restraint, Opportunity and Challenges analysis
4.1.1. Drivers
4.1.2. Restraints
4.1.3. Opportunities
4.1.4. Challenges
4.2. COVID-19 Impacts of the South Africa Used Car Market
5. Market variable and outlook
5.1. SWOT Analysis
5.1.1. Strengths
5.1.2. Weaknesses
5.1.3. Opportunities
5.1.4. Threats
5.2. PESTEL Analysis
5.2.1. Political Landscape
5.2.2. Economic Landscape
5.2.3. Social Landscape
5.2.4. Technological Landscape
5.2.5. Environmental Landscape
5.2.6. Legal Landscape
5.3. PORTER’s Five Forces
5.3.1. Bargaining power of suppliers
5.3.2. Bargaining power of buyers
5.3.3. Threat of Substitute
5.3.4. Threat of new entrant
5.3.5. Competitive rivalry
5.4. Heat Map Analysis
6. Competitive Landscape
6.1. South Africa Used Car Market Manufacturing Base Distribution, Sales Area, Product Type
6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in South Africa Used Car Market
7. South Africa Used Car Market, By Vehicle (USD Million) 2020-2033
7.1. South Africa Used Car Market Size, Share and Forecast, By Vehicle, 2020-2026
7.2. South Africa Used Car Market Size, Share and Forecast, By Vehicle, 2027-2033
7.3. Conventional
7.4. Hybrid
7.5. Electric
8. South Africa Used Car Market, By Body Type (USD Million) 2020-2033
8.1. South Africa Used Car Market Size, Share and Forecast, By Body Type, 2020-2026
8.2. South Africa Used Car Market Size, Share and Forecast, By Body Type, 2027-2033
8.3. Hatchbacks
8.4. Sedan
8.5. SUV
8.6. Others
9. South Africa Used Car Market, By Fuel Type (USD Million) 2020-2033
9.1. South Africa Used Car Market Size, Share and Forecast, By Fuel Type, 2020-2026
9.2. South Africa Used Car Market Size, Share and Forecast, By Fuel Type, 2027-2033
9.3. Petrol
9.4. Diesel
9.5. Others
10. South Africa Used Car Market, By Vendor Type (USD Million) 2020-2033
10.1. South Africa Used Car Market Size, Share and Forecast, By Vendor Type, 2020-2026
10.2. South Africa Used Car Market Size, Share and Forecast, By Vendor Type, 2027-2033
10.3. Organized
10.4. Unorganized
11. South Africa Used Car Market, By Size (USD Million) 2020-2033
11.1. South Africa Used Car Market Size, Share and Forecast, By Size, 2020-2026
11.2. South Africa Used Car Market Size, Share and Forecast, By Size, 2027-2033
11.3. Mid-Size
11.4. Compact
11.5. SUVs
12. South Africa Used Car Market, By Distribution Channel (USD Million) 2020-2033
12.1. South Africa Used Car Market Size, Share and Forecast, By Distribution Channel, 2020-2026
12.2. South Africa Used Car Market Size, Share and Forecast, By Distribution Channel, 2027-2033
12.3. Offline
12.4. Online
13. South Africa Used Car Market Forecast, 2020-2033 (USD Million)
13.1. South Africa Used Car Market Forecast Size and Market Share
14. South Africa Used Car Market Forecast, By Region, 2020-2033 (USD Million)
14.1. South Africa Used Car Market Forecast Size and Market Share By Region (2020-2026)
14.2. South Africa Used Car Market Forecast Size and Market Share By Region (2027-2033)
14.3. South Africa
14.3.1. Gauteng
14.3.2. Western Cape
14.3.3. KwaZulu-Natal
14.3.4. Eastern Cape
14.3.5. Northern Cape
14.3.6. Limpopo
14.3.7. Mpumalanga
14.3.8. North West
15. Company Profile
15.1. AL-FUTTAIM GROUP
15.1.1. Company details
15.1.2. Financial outlook
15.1.3. Product summary
15.1.4. Recent developments
15.2. ABDUL LATIF JAMEEL MOTORS
15.2.1. Company details
15.2.2. Financial outlook
15.2.3. Product summary
15.2.4. Recent developments
15.3. YALLA MOTOR
15.3.1. Company details
15.3.2. Financial outlook
15.3.3. Product summary
15.3.4. Recent developments
15.4. AUTOTRADER SOUTH AFRICA
15.4.1. Company details
15.4.2. Financial outlook
15.4.3. Product summary
15.4.4. Recent developments
15.5. CARS 4 AFRICA
15.5.1. Company details
15.5.2. Financial outlook
15.5.3. Product summary
15.5.4. Recent developments
15.6. CARZAMI
15.6.1. Company details
15.6.2. Financial outlook
15.6.3. Product summary
15.6.4. Recent developments
15.7. AUTOCHEK AFRICA
15.7.1. Company details
15.7.2. Financial outlook
15.7.3. Product summary
15.7.4. Recent developments
15.8. AUTOTAGER
15.8.1. Company details
15.8.2. Financial outlook
15.8.3. Product summary
15.8.4. Recent developments
15.9. CARS45
15.9.1. Company details
15.9.2. Financial outlook
15.9.3. Product summary
15.9.4. Recent developments
15.10. Others
16. Conclusion
17. List of Abbreviations
18. Reference Links
SPER Market Research’s methodology uses great emphasis on primary research to ensure that the market intelligence insights are up to date, reliable and accurate. Primary interviews are done with players involved in each phase of a supply chain to analyze the market forecasting. The secondary research method is used to help you fully understand how the future markets and the spending patterns look likes.
The report is based on in-depth qualitative and quantitative analysis of the Product Market. The quantitative analysis involves the application of various projection and sampling techniques. The qualitative analysis involves primary interviews, surveys, and vendor briefings. The data gathered as a result of these processes are validated through experts opinion. Our research methodology entails an ideal mixture of primary and secondary initiatives.
