The new and used car markets showed positive growth in March 2025, following strong performances in January and February. As we enter the second quarter, the first three months of the year have provided a good outlook. While used car sales are up monthly and annually, new car sales have decreased slightly since February 2025 but show positive year-on-year (YoY) growth.
New data from AutoTrader, the country’s most trusted motoring marketplace, shows significant growth in the used car segment. In March, 29,896 used vehicles were sold, representing a YoY and month-on-month (MoM) increase of +9.6% and +3.5%, respectively.
“March has been a positive month for both new and used car sales, reflecting the growing demand across different market segments,” said George Mienie, CEO of AutoTrader. “The used car market continues to outperform expectations, with significant year-on-year growth, underscoring the increasing importance of affordability and value in today’s market.”
“While new car sales have seen slight month-on-month fluctuations, the year-on-year growth remains strong, showcasing resilience in the face of shifting consumer preferences. As we move into the second quarter of 2025, these trends highlight the evolving dynamics of South Africa’s automotive landscape, where budget-conscious and quality-seeking consumers are driving market shifts,” added Mienie.
According to naamsa | The Automotive Business Council, 33,447 new passenger vehicles were sold in March 2025. Unlike the used car segment, where sales have blossomed from the previous month and period last year, it’s a bit of a mixed bag in the new car industry. Sales have fallen by 260 units compared to February 2025, which is interesting considering that March had more selling days than February. However, there’s still some good news, as March 2025 outperformed March 2024 (26,691) by +25.3%, which is significant growth in a 12-month period.
An emerging trend is the South African consumer’s desire to purchase more affordable new vehicles, shown by a drop in the average value of financed new cars. This has decreased from R389,637 in March 2024 to R363,567 in March 2025, a notable difference of R26,070 or, in percentage terms, -6.7%1. This occurred in January and February 2025, with the latter showing an even more significant -8.5% drop.
While new car buyers are leaning towards more affordable models, the used car market tells a different story, with an MoM increase of R1,205 and a YoY increase of R4,683, bringing the average cost of a used car up to R417,688 in March 2025. Compared to last year, the average year model is now lower (five years), while the average mileage has increased from 74,612 km in March 2024 to 75,766 km in March 2025.
In the used passenger car market, the Volkswagen Polo Vivo outsold the more expensive Polo, with the budget-oriented model reaching 1,248 units in March 2024. The Polo follows in second place, with 1,222 examples sold. The Toyota Fortuner remains South Africa’s favourite used SUV, finishing in third with 688 recorded used sales, with the Suzuki Swift following closely at 506 sales.
The Polo Vivo also dominates the new passenger car market, with 1,703 examples sold last month. The popular German hatchback managed to outsell January and February’s best-seller, the Suzuki Swift, by a narrow margin, with the Swift registering 1,608 sales in March 2025. Following the Polo Vivo and Swift are the locally-built Toyota Corolla Cross (1,570) and the Hyundai Grand i10 (1,344).
