While the unprecedented highs of the used car market in 2022 have eased, now is still a favorable time to sell your vehicle in South Africa. Economic influences like supply chain improvements and fluctuating interest rates mean that demand for quality used cars remains relatively strong.

The Effects of Time and Economic Changes

Let’s consider some numbers. While specific figures will vary based on models, the trend is clear: used car prices are gradually softening. This means waiting too long to sell could diminish your returns.

Understanding South Africa’s Unique Factors

South African car buyers are understandably concerned about rising fuel costs. If your car is known for its fuel efficiency, highlight that in your listing. Additionally, import restrictions bolster the resale potential of popular local brands. Lastly, keep in mind that South Africa’s economic outlook for the next year or two is a predicted GDP growth of 1% in 2024, averaging only 1.4% through 2026, signals potential economic stagnation. This starkly contrasts with the IMF’s 4% projection for emerging and developing economies, and even falls below the outlook for advanced economies at 1.7%. This could impact whether buyers feel secure purchasing a used car or if they’ll be more hesitant to take on additional expenses.

Why Now Might Still Be A Good Time to Sell

• Inventory Shortages Persist: Dealerships still seek to replenish stock, creating a market for well-maintained used cars – especially newer models.
• Depreciation is Inevitable: Cars are depreciating assets. Every day you wait potentially reduces the value you can recoup when selling.

Ready to Sell Your Car?

If you’re considering selling your car, the current market still offers opportunities for reasonable returns. Here’s why you might want to act sooner rather than later:

• Interest Rates: Fluctuating interest rates could impact buyer willingness to spend in the coming months.
• Economic Outlook: While predictions vary, economic headwinds could further soften used car prices as the year progresses.

Get the Most Value for Your Car

Particularly if you own a vehicle in the two to five-year age range, now could be an ideal window to explore its value and capitalize on this seller-friendly period.

Enhanced Seller Tips:

• Maintenance History: A complete service history can be an important factor to boost buyer confidence and justify a higher price.
• Professional Detailing: Having the car professionally detailed before listing can significantly improve its appeal and perceived value.

Steven Johnson Cars: Your Trusted Partner

We can help you determine the fair market price of your used car using expert valuations. Get in touch to maximize your selling potential today!