New car sales languish, but 2nd-hand industry is 'more stable' – WeBuyCars

Lester Kiewit speaks to Faan van der Walt, CEO of WeBuyCars, about the state of the secondhand car market.

Data from WeBuyCars shows that people hang on to vehicles until they're 'kaput' before buying a new car, says van der Walt.

He says South Africa's stagnant economy and soaring inflation rates over the years have had a 'severe impact' on this industry.

The second-hand car industry is, however, 'more stable'.

"The economy is tough so its been very tough especially in the new vehicle sales environment."

- Faan van der Walt, CEO - WeBuyCars

"We are sitting with a 15-year high when it comes to interest rates, so the South African consumers are definitely not used to this... and it's high time to see change.'

- Faan van der Walt, CEO - WeBuyCars

"We've seen a slump in recent years in new vehicle sales and we saw certain brands taking strain and losing market share. But when you look at the used market, it's far more stable."

- Faan van der Walt, CEO - WeBuyCars

Vehicle sales indicate the state of the health of the broader economy, says Van der Walt.

"Every month, there are roughly around 140 000 to 150 000 vehicles being registered as used vehicles, because it's definitely more sustainable in South Africa."

- Faan van der Walt, CEO - WeBuyCars

Van der Walt says that because of climbing interest rates and inflation, 'new cars are out of reach for most South Africans'.

For those who are buying new vehicles, they opt for affordable car options which are mostly cars manufactured in China and India.

"New cars are just out of reach for most consumers and that's why there's a good case to be made for cheaper cars which is also why car manufacturers from China do so well because they saw a gap in the market and they're addressing it."

- Faan van der Walt, CEO - WeBuyCars

Overall, there are signs of 'hope and positivity' in the market 'because the economy has so much potential', concludes van der Walt.

Scroll up to the audio player to listen to the full conversation.