As second-hand vehicle sales continue to rise, South Africans are being advised to exercise extreme caution when looking to buy one.
Image: Ian Landsberg/Independent Newspapers
As second-hand vehicle sales continue to rise in the country, South Africans are being cautioned to exercise extreme caution when looking to buy one.
According to a recent study conducted by Grand View Research, South Africa's "pre-owned car market continues to expand, with revenues reaching approximately $ 14.9 billion (R272.1 billion) in 2024 and projected to rise to $ 18.3 billion (R329.4 billion) by 2030."
In contrast, new vehicle sales have declined by 3.0% in 2024 compared to the previous year. The demand for pre-owned vehicles has led to a surge in prices, pushing the average price of a pre-owned car to R408,516 by December 2024.
The growth is largely attributed to individuals seeking more affordable vehicles due to the country's economic struggles and high fuel prices.
However, as the pre-owned vehicle market continues to boom, Siyakha Masiye, spokesperson at Miway Insurance has warned that buying a used car "comes with both pros and cons".
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“South Africa lacks a reliable system for recording vehicle accident history, and less than 30% of vehicles are insured, meaning the quality and safety of many vehicles on the market – and the roads – are also worrying,” said Masiye.
“This unfortunate trend has seen some insurers refusing to insure unsafe vehicles, with others accused of being involved in fraudulent car sales, further complicating the process of buying a reliable second-hand vehicle for unsuspecting consumers.”
As more people opt for pre-owned vehicles, Masiye has outlined four steps to guide consumers in purchasing a second-hand car.
Always request the vehicle’s history report, accident reports, service book, and previous owner’s details from the car dealership and not solely rely on the seller's inspection report.
Buyers should also consider conducting independent assessments to ensure the car meets safety and reliability standards.
Masiye explained that "Code 3 vehicles are cars that have been previously written off and then rebuilt. While these vehicles may be legally roadworthy, it is important to be aware of any structural damage, as this can pose safety concerns. Buyers should exercise extra caution when considering Code 3 cars and conduct a thorough assessment before making a purchase."
He also said that when buyers buy the car, they should make sure they have made the necessary assessments to ensure your car qualifies for comprehensive insurance and that there are no hidden liabilities.
"There may be exclusions or higher premiums for vehicles with prior damage or those classified as code 3. Buyers should always understand the cover they are taking on their vehicle as well as the coverage limitations, potential repair costs, and how the car’s history may impact future claims.”
Masiye stated that a visual inspection of the car was not enough and urged consumers to test-drive the car in order to check for any mechanical faults.
“As the second-hand vehicle market grows to meet demand for a cheaper ride, buyers need to take extra precautions to avoid making a dud purchase that could become much more costly than anticipated,” he said.
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