Thanks to factors such as increased economic pressure and an overall reduction in the supply of stock, demand for used cars in South Africa has gone through the roof. This notion is supported by data contained in the 2021 AutoTrader Mid-Year Industry Report, which shows a record 319 million total vehicle searches were conducted in the first half of 2021.
The report also reveals that, in the six months ending June 2021, over 633,000 vehicles were listed on AutoTrader, with June accounting for the largest stock count. Year-on-year there was a 4% reduction in available stock – meaning fewer consumers were selling vehicles, the vehicle marketplace said.
One of the consequences is an increase in the price of the average used car. There are, however, a few extreme examples, where supply is even more limited and demand even stronger. In such cases, a lightly used vehicle is sometimes listed for more than its new counterpart.
AutoTrader’s CEO George Mienie said that although such instances are relatively rare, they nonetheless provide interesting insights into buyer behaviour.
“When a new limited-edition model – usually a performance vehicle of some kind – first hits the market, a few units sometimes pop up in the used space. And they’re often listed for even higher than the suggested retail price,” said Mienie.
“While it may seem inconceivable to pay more for a vehicle on the used market than new, some buyers are prepared to fork over a premium to either skip the waiting list or get their hands on a vehicle that has technically already been sold out. It’s all about supply and demand,” he said.
One such example is the new Toyota GR Yaris, an all-wheel-drive homologation special that has been making waves across the automotive world. Though the flagship Rally version retails for R715,600, one listed in Centurion with 2,000km on the clock for R750,900.
It’s a similar case with the R606,600 base derivative, with a handful of models listed at higher prices.
With just 90 units of the V8-powered Ford Mustang Mach 1 set aside for South Africa, there’s little wonder a couple of examples of the special-edition coupé have found their way onto the used market at inflated prices, AutoTrader said.
Listed in Klerksdorp for R1,379,900, this automatic version commands a R176,100 premium over the new price – though all units have reportedly already been sold.
Listed by Ford earlier this year, the Mustang Mach 1 5.0 V8 6MT was priced at R1,182,100, while the Mustang Mach 1 5.0 V8 10AT was priced from R1,203,800.
AutoTrader also noted that the new Toyota Land Cruiser 300 – a much-anticipated luxury SUV – listed in Hatfield, with a ZX 3.5T derivative advertised at R2,200,000 – as much as R402,900 more than the retail price of R1,797,100.
AutoTrader noted that its final example is a little different, considering supply isn’t quite as restrained. “It’s interesting to note a number of used examples of the locally built Ford Ranger Raptor double-cab bakkie are listed at prices higher than the recommended retail figure of R920,300, including a model in Morningside, Johannesburg priced at R999,995,” the group said.