The demand for used vehicles in South Africa has grown increasingly over the years, as many “organised and unorganised” entities emerging.
South Africa’s used car market is estimated to be worth around USD 19.75 billion in 2025. It is expected to reach USD 32.53 billion by 2030.
Boom ahead
The used car market is expected to grow at a compounded rate of 10.5% over the next five years.
The second hand car market is unofficially separated into two groups, organised and unorganised. Large dealerships fall under organised banner while the unorganised cohot operates outside the legal framework.
Unorganised car sellers are typically those you would encounter via e-commerce platforms and social media.
A key factor driving the growth of the organized used car market in South Africa is the increasing preference for certified and pre-inspected used cars, according to Motor Intelligence.
Online platforms are also more cost-effective than traditional dealerships, as they have lower overheads and can offer competitive pricing.
Unorganised holds large portion of market
This cohort includes individuals, small dealerships, and car markets not registered or licensed by the government.
Despite holding a large share, the unorganised market remains a fragile over its lack of transparency in pricing, terms and conditions and vehicle history.
Odometer tampering, stolen cars, and misrepresenting the vehicle’s condition and history are some of the common concerns.
There is no legal recourse to follow after purchasing a car through an unofficial channel.
According to Naamsa, the Automotive Business Council, used car sales exceeded total new passenger car sales, with 32,090 used cars being sold in South Africa in July 2023.
Online sales on the rise
One noticeable trend is the rise in used-car purchases made through online shopping. Convenience, a large selection of vehicles, and the ability to quickly compare pricing and features drive this shift.
Key factors influencing the growth of e-commerce in South Africa include the ease, convenience, and security of the payment methods. Online retailers investing in making their websites more appealing and user-friendly also drive this.
The significant growth of alternate payment methods is also boosting the growth of the e-commerce market in the region.
Bank transfers and digital wallets are customers’ two most used payment methods for online sales.
Moreover, increasing smartphone penetration and the arrival of advanced digital wallet solutions are further expected to drive the growth of the e-commerce market in the region.
Online marketplaces are increasingly being used to purchase and sell second-hand cars. Many customers use websites and mobile applications to explore listings, compare prices, and communicate with sellers.
Source: MotorIntelligence
