SA’s car culture shifts gears: SUV boom, Sedan slump

CapeTalk and 702's Stephen Grootes chats to consumer journalist Wendy Knowler.

Listen below:

South Africa’s car-buying landscape has undergone a dramatic shift over the past decade, with double-cab bakkies like the Toyota Hilux and Ford Ranger now replacing German sedans as the country’s top status symbols.

The rise of Chinese manufacturers has also disrupted traditional players, with brands like Mahindra and Haval gaining significant ground – while stalwarts like Nissan and Renault have lost major market share.

Knowler states that one of the most surprising trends is the significant increase in car ownership among 18 to 25-year-olds, with vehicle finance applications in the R250,000 to R500,000 range more than doubling in recent years.

"The youth market is huge, which is quite interesting when you think about the level of unemployment."

- Wendy Knowler, consumer journalist

Knowler says this demographic now accounts for over half of the finance deals in that range, heavily influenced by social media platforms.

Meanwhile, the country's overall vehicle sales have still not recovered to 2015 levels, and affordability remains a major concern. 

The cheapest new cars now cost double what they did a decade ago (adjusted for inflation), and with average net salaries below the threshold required to afford even basic models, many buyers stretch their budgets or resort to creative financing. 

Knowler notes that 70% of vehicle finance applications are declined, while many successful buyers end up committing to cars more expensive than initially intended.

Worryingly, balloon payments (where buyers delay paying a chunk of the cost) are on the rise, now appearing in nearly 40% of car finance agreements, according to WesBank.

"Only 20% of cars are paid for in cash in this country."

- Wendy Knowler, consumer journalist

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