Despite car buyers on the pre-owned market focusing on downsizing and affordability, bakkies and SUVs remain as popular as ever.
According to WeBuyCars’ (WBC) latest statistics, demand in these categories significantly drove up the prices of five desired vehicles over the course of last year.
The vehicles, and their average increases in window stickers in 2022, were as follows:
- Ford EcoSport – 24.81%
- Ford Ranger – 32.21%
- Isuzu KB – 22.71%
- Toyota Fortuner – 17.64%
- Toyota Hilux – 32.28%
These climbs are even more noteworthy when considering they are against a backdrop of an average 21% drop in prices for used vehicles on WBC’s floor during the same time, said Rikus Blomerus, WBC chief marketing officer.
A buyer’s market
While these popular cars rose in cost on the pre-owned market in 2022, Blomerus said an increase in supply and lower demand for used vehicles in general due to the current socio-economic landscape is good news for consumers.
“Year-on-year the average used-vehicle price on WeBuyCars’ floors has dropped with about 21% due to a combination of factors, primarily the combined impact of socio-ecomonic factors,” he said.
“As a result, prices have been decreasing due to the supply and demand of used vehicles. As customers are more price sensitive and the demand is low, it makes for ideal circumstances to now purchase a used vehicle.”
The continually-rising prime interest rate, which was raised by 0.5 basis points to 11.25% in March, is further anticipated to put a damper on demand for new vehicles and channel these consumers to the pre-owned segment.
“It is likely that the rate hike will exacerbate an already-stressed economic environment,” said Blomerus
“It may have a material effect on affordability of current and future new vehicle purchases and the ability for buyers to finance new deals, making the used car sector more attractive and attainable for consumers.”
Thanks to this combination of inputs, WBC expects to sell a record 13,000 vehicles in March after it has tallied up all the numbers from its nationwide chain of dealers.
