Credit bureau TransUnion has released its latest Vehicle Pricing Index for the first quarter of 2018, showing the types of vehicle brands that attract the most financing, both new and used.
According to the index, total financial agreement volumes in the passenger market decreased by 6% from Q1 2017 to Q1 2018. New passenger finance deals, however, increased by 6%, while used decreased by 10%.
TransUnion also found that the South Africans were buying noticeably fewer used cars, as the used-to-new ratio decreased from 2.49 in Q1 2017 to 2.09 in Q1 2018.
In the used vehicle market, the make-up of used vehicle sales has shown that 46% are under two years old and 9% were demo models which indicates consumers are opting for under two year old vehicles, the bureau said. Citing Naamsa, it said there has been a year on year increase of 3.7% in new passenger vehicles and a decrease of 2.3% of new light commercial vehicle for March 2018.
The percentage of cars (new and used) being financed below R200,000 has remained consistent to last quarters numbers with 43% in Q1.
“This has shown a marginal increase in used car loans which has being consistent at around R242,000. This indicates a shifting emphasis on the value proposition that consumers place on their vehicles, as they look for the maximum amount of value from a car,” TransUnion said.
When it comes to the types of cars, unsurprisingly, Toyota and VW dominate both the new and used space, capturing more than 35% of the new and used passenger financed volumes, through vehicles including the Polo and Vivo range, the Fortuner and Corolla models.
“We have seen a shift in the vehicles financed under R200,000. The percentages have changed from an average of 40% in 2017 to 43% in Q1 2018,” said Kriben Reddy, head of auto information solutions at TransUnion.
According to AutoTrader, usually those cars that sell well new, will continue to sell well in a second hand market. Volkswagen rules the roost, followed by Toyota. “If you want a quality vehicle with an excellent re sale value, a Volkswagen Polo or Polo Vivo is a sure bet,” AutoTrader said. “Not only will the resale value be excellent, but you will also sell these vehicles faster than any others.”
The Polo was among the most searched-for vehicle on AutoTrader in 2017.
Most models of Toyota still hold their value – including the Aygo, Corolla Quest, Etios, Avanza and Yaris, which boasts a good reputation and they’re perceived to be reliable too.
In the hatch category, the best option is the Volkswagen Golf – the third most searched for vehicle on AutoTrader in 2017.