What Every South African Should Know Before Buying a Used Car in 2026

With interest rates down and inflation at historic lows, South Africa’s used car market has hit its sweet spot. Here’s your guide to finding the best value in 2026.

The start of a new year in South Africa often signals a season of transition. Whether it is a first job, a long-awaited promotion, or a relocation for university, these milestones share a common requirement: the need for reliable wheels.

A South African graduate looking for a second hand vehicle

For most, that journey begins in the pre-owned market. However, buying a used car in 2026 isn’t quite the same as it was a few years ago. Driven by shifts in interest rates, record-low inflation, and changing consumer habits, the landscape has evolved into a “sweet spot” for the prepared buyer.

The Economic Tailwinds

If you’ve been waiting for a more favourable climate to finance a vehicle, the numbers suggest that moment has arrived. After peaking at 11.75%, the prime interest rate has stabilized at 10.25% following a series of cuts totalling 150 basis points.

A Black African professional signing a new purchase agreement at the dealership

Perhaps more surprising is the cooling of prices. Vehicle inflation hit a historic low of 1.5% in 2025; the lowest level since 2008. This stability has driven more South Africans toward used cars, with nearly half of all pre-owned purchases now being financed at an average price point of approximately R396,000.

Supply, Demand, and the “SUV Takeover”

The Ripple Effect: In 2025, new car sales surged to nearly 600,000 units, the highest in a decade. This is great news for used buyers, as it eventually leads to more trade-ins and better stock availability.
The Scarcity Factor: On the flip side, many South Africans are now holding onto their cars for six to eight years. This makes low-mileage, well-maintained vehicles in popular segments harder to find.
The SUV Premium: If you are looking for a compact SUV or crossover, be prepared to pay a premium. These models now represent over 50% of the passenger market. A three-year-old compact SUV will often cost more than a sedan of the same age and condition.

The demand for SUV's at the dealership floor

Finding the “Sweet Spot

For those seeking the best value for their money, the three-to-five-year-old segment remains the gold standard.

By the time a car reaches this age, it has already absorbed its steepest depreciation hit. Yet, these vehicles typically still offer modern safety features, manageable mileage, and often a portion of the original warranty coverage. In 2024, this segment alone accounted for over 44% of the market.

Looking Ahead: The 2026 Outlook

The outlook for the remainder of the year is optimistic. NAAMSA forecasts a 9–11% growth in new vehicle sales, which should further loosen up the used car inventory by the second half of the year.

A dealership that sales green energy vehicles

We are also seeing a shift in “green” interest. Roughly 36% of prospective buyers are now eyeing hybrids. As the country’s electricity infrastructure improves, expect these electric and hybrid options to become more common sights on used car lots.

The Bottom Line

“A favourable interest rate means little if the monthly payment strains your budget,” warns Gaoaketse.

The secret to a successful purchase in 2026 isn’t just finding the right car; it’s understanding the Total Cost of Ownership. This includes insurance, fuel, maintenance, and repairs. In a market that is finally showing signs of balance, patience and research are your two greatest assets.

Expert Tip: Before you step onto a dealership floor, have a firm grasp of your monthly limit and a shortlist of models that have already moved past their initial depreciation cliff.

Post Views: 0