Nearly new or brand new? What SA’s cheapest cars are worth after a year
Why this matters: an international story with cross-border implications worth tracking.
As new car prices continue to rise, along with the price of fuel and the broader cost of living, buying one of South Africa’s more affordable cars is no longer as inexpensive as it once was. For buyers shopping below the R23 0000 mark, the gap between new and nearly new is worth looking at closely. A one-year-old version of the same car might have low mileage and warranty cover remaining but with part of the first year’s depreciation reflected in the price. Auto Trader used car data shows that the saving is not consistent across the entry-level market. Some of South Africa’s most economical new cars are listed for thousands of rand less after a year on the road, while others remain close to their original price. In one case, the average used price is higher than the current listed new price. The comparison looks at selected entry-level models by their base trim levels, using their new prices against average listed prices for one-year-old examples on AutoTrader. Mileage is generally low, with all models in the sample averaging below 20 000km. “The first-year depreciation gap matters most where household budgets are already tight,” said AutoTrader chief executive George Mienie. “At the lower end of the market, a saving of R10 000 or R20 000 is not incidental. “ It can influence finance approval, monthly repayments, insurance affordability and even whether a buyer can move into a better-specified model. That is why nearly-new cars have become such an important part of the affordability conversation.” Renault’s Kwid 1.0 Evolution shows the largest percentage gap in the data. It is priced at R178 999 new, while one-year-old used examples average R156 129. That puts the used average R22 870 lower than the new price, a difference of 12.8%, with average mileage of 9 261km. The Proton Saga 1.3 Standard Manual is another strong case for buying nearly new. A new example is priced at R209 900, while one-year-old used models average R190 730. That is a saving of R19 170, or 9.1%,