How much money we spend when buying a new car in South Africa

Data published by credit bureau Compuscan, shows the average loan size for South Africans when purchasing a new vehicle.

Compuscan noted that nearly half a million vehicle loans have been granted over the past year, with the average vehicle loan granted amounting to R272,182.16.

In order to afford such a loan, a person needs to be earning close to R30,000 per month.

In July, data by vehicle finance firm, WesBank, showed that consumers who are buying vehicles are spending more, in line with new car price inflation as well as increasing demand in the used market.

The average deal value for a new vehicle rose to R291,000 in the mid-year month of June – an increase of 11% year-on-year.

The average deal for used cars rose 10%, to R188,000, Wesbank said.

The application volumes for new vehicles amounted to 34,835 in June, while for used vehicles, the number in June was 86,926, the bank said.

Naamsa data has shown that new vehicle sales over the past year has declined by approximately 10% year-on-year with numbers ranging between 40,000 and 50,000 vehicles each month.

Read: The best time to sell your car in South Africa

A poll conducted by BusinessTech and exceeding 3,200 voters asked readers the following: How long have you had your current car?

  • More than 5 years 38%
  • 2 – 3 years 15%
  • 1 – 2 years 15%
  • Less than a year 13%
  • 3 – 4 years 10%
  • 4 – 5 years 8%

Compuscan recently highlighted a shift in the vehicle and asset finance (VAF) sector impacted by the stuttering economy.

It noted a decline in the number of VAF accounts between the value of R400,001 and R999,999 recorded on the bureau, compared to a prior quarter.

Similarly, there was a 20% decrease in the number of these loans to the value of R1 000 000 and more, and a 13% decrease in the number of VAF loans between the value of R250 001 and R400 000.

There was a dramatic 156% increase of VAF loans to the value of R50,000 or less, while there was also a 16% increase of this loan type between the value of R51,000 to R100,000 and a 10% increase of those between R101,000 and R250,000.

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How much money we spend when buying a new car in South Africa