Is now a good time to buy a "nearly new" car?

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I’d like to think that the answers lies in each individuals' circumstance. I always believe that whenever ‘that’ time is, it will be the right time for you.

Don’t be alarmed to find out that sales of ‘newzd’ or nearly new cars have increased by 32% from August to July 2020, placing buyers firmly in the proverbial pound seats. Buyers of older used cars are also scoring; total inventory listings have increased by nearly 20% month-on-month (June to July 2020).

The sad part of all this, is that the majority of consumers are suffering from the financial impact of Covid-19 as a result of a loss of income and other. So, car owners are letting go of their prized possessions at a reduced price than what they would have otherwise received in exchange.

According to George Mienie, CEO of AutoTrader, statistics such as these mean we are experiencing a buyer’s market in South Africa right now. “Simply put, buyers are spoilt for choice – especially if they’re looking for a car with a registration year listing of 2019 (we refer to these as ‘nearly new’),” he explains.

What to expect

What models are up for grabs and what can buyers expect to pay?

Mienie reveals that the 2019 registration year car with the most active listings is the Volkswagen Polo.

“The average selling price of a 2019 Polo is R221,492 while the average mileage is 22,448 km,” he notes.

In second place, in terms of active listings of 2019 models, is yet another Volkswagen derivative, namely the Polo Vivo. The average selling price of a 2019 Polo Vivo is R178,994 while the average mileage is 23,338km.

Toyota vehicles account for half of the models when it comes to the top ten 2019 registration year cars with the most active listings. According to Mienie, “This is not surprising, given the fact that the Japanese carmaker does sell the most new vehicles in South Africa.”

The Toyota Corolla Quest, Toyota Yaris and Toyota Etios are in third, fourth and fifth place respectively. The average selling price of a 2019 Corolla Quest is R190,362 and the average mileage is 26,883km. The average selling price of a 2019 Yaris is R217,796 with an average mileage is 26,598 km. The average selling price of a 2019 Etios is R158,815 and the average mileage is 27,652km.

The other two Toyota's in the top 10, the Fortuner and RAV4 (in seventh and eighth place), have average selling prices of R479,378 and R391,156 respectively.

Cash-strapped South Africans will no doubt cheer at the news that there are lots of 2019 Datsun Go’s available for sale at a mere R123,157 and this is considered to be a great deal. This represents a significant saving over the price of a new Go, which starts at R174,200.

Perhaps, surprisingly, the most sold used car in South Africa – the Ford Ranger – only clocks in tenth. It has an average selling price of R452,667.

Whichever way you look at it, buying a ‘newzd’ car in these Covid times will always come with some caution, amongst other things.

Just make sure that you have checked out the credentials of the car and the buyer. Do all the necessary checks and balances and should you feel that there is something not right with the deal, then walk away from it. Rather do this upfront than have severe regrets later. We all want that ‘proverbial’ bargain but remember this, cheap is expensive.

I have learned that the hard way.