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Johannesburg – Used car prices in South Africa remained under enormous pressure in the first quarter‚ according to figures released by Transunion‚ the influential business information and risk management company.
According to the company’s Vehicle Pricing Index (VPI)‚ issued quarterly‚ used car prices fell 1.4% year-on-year‚ suggesting the continued buoyancy of the new-car market was continuing to hammer used prices.
This could suggest individuals and fleet managers are rushing to buy new cars ahead of anticipated new-car inflation bought on by the weak rand.
“Despite the widening gap between new and used passenger vehicle prices‚ there has been little relief for used market dealers as new vehicles continue to find increasing favour with consumers‚” TransUnion’s Mike von Höne said in a press release.
Transunion said the new/used ration fell to 1.49 used cars per new car in the first quarter‚ the lowest in four years‚ according to the company.
However‚ the spectre of new car inflation gave hope to the used-car market for the rest of the year‚ Mr Von Hone said.
“Given the weakening of the rand‚ which could result in a slight acceleration of new vehicle price inflation along with fuel price hikes and the inevitable introduction of toll fees for Gauteng motorists‚ it’s possible that the pendulum will once again swing back in favour of used vehicles in the current year‚” von Höne said in the release.
