Personal Finance & Motoring Explored
We look at stats showing how much people are spending on cars in South Africa today, compared to a decade ago.
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New car prices continue to lag inflation, while used cars continue their trend of getting relatively more expensive, data from consumer credit reporting agency TransUnion shows.
The latest TransUnion SA Vehicle Pricing Index (VPI) for new vehicles moved from 6.0% in Q2 2021 to 3.9% in Q2 2022, with the used vehicle index soaring from 4.9% to 8.3% in the same period.
The VPI measures the relationship between the increase in vehicle pricing for new and used vehicles from a basket of passenger vehicles which incorporates 15 top volume manufacturers. The index is created using vehicle sales data from across the industry.
As a result of these pricing trends, the ratio of used to new vehicles sold shifted significantly in the past quarter, said TransUnion. A year ago, 2.67 used vehicles were sold for every new vehicle; in 2022 Q2, this declined to 2.1.
During this period, 81,533 used and 38,824 new vehicles were financed by TransUnion, with only 27% of the pre-owned models being under the age of two years old.
In the used vehicle market, 27% of cars sold were less than two years old, and this continues to decrease as the supply of quality used vehicles remains under pressure. Demo models financed made up 4% of used financed deals, which indicates consumers are opting for older vehicles as quality supply diminishes and pressure on disposable income increases.
The majority of vehicles financed by TransUnion during the second quarter of 2022 fell in the R300,000-plus finance band.
The second-most-popular finance band for both new and used vehicles, was R200,000-R300,000, with 30% of deals falling in this bracket, while the least-popular band was under R200,000, seeing 25% of all agreements.
This has changed dramatically from a decade ago, when only around a quarter of vehicles financed were above the R300,000 mark, and more than half of vehicles were below the R200,000 mark.
The below infographic details TransUnion’s most-popular finance bands for Q2 2022:
VW accounted for 22% of all finance applications submitted to TransUnion in the period. For new passenger vehicles, however, Toyota accounted for 34% of total share in the market.
“Although Toyota and VW did well in both areas, sharing the top two spots in both new and used, Hyundai and Suzuki had a great quarter alongside Toyota on new passenger vehicles financed,” said TransUnion.
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Article Credit To BusinessTech Motoring.
What is your view on how much South African vehicle owners spend today on cars versus a decade ago? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
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