Now may be the best time to consider buying or selling a used or pre-owned car, according to a report issued by AA Autobay.

Support for private individuals in the car market

“We are experiencing a substantial increase in calls to our sales centre enquiring about buying vehicles privately through us,” says Ed Gassner, CEO of AA Autobay.

New vehicle sales have been declining over the past months, with the market some 13% down on last year. Recent reports have also cited a drastic decline in pre-owned vehicle sales, with the National Credit Act (NCA) impacting on consumer finance as much as rising interest rates have. 

Low trade-ins offered by dealerships

 “It seems SA consumers are combating the financial pinch by buying down into more affordable vehicles, but struggling to accept the abysmal values being offered in the trade for their current vehicles,” says Gassner.

Increased interest shown by public in AA Autobay

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AA Autobay’s theory is supported by a 34% increase in calls into their national call centre.“Incoming cases into the call centre by mid-October had already surpassed the total calls received in May this year,” says Stephen de Blanche, COO of AA Autobay. “We are receiving nearly 1400 calls a day, which would outstrip our best month so far (August) by 34%. This is in sharp contrast to recent press reports that quote as much as a 50% decline in pre-owned vehicle sales.”

De Blanche said the increase in calls is tangible to a trend indicating improved sales. “Visits to our website have also climbed steadily, indicating a similar market browsing our stock. But only serious buyers or sellers put the effort in to make personal interaction with sales staff, so increased call centre stats indicate increased purchasing interest,” he said. 

More car owners selling privately

 Private pre-owned sales through the AA portal have increased steadily since launching in November last year. “Sales have increased by an average of 43.5% month on month since January this year,” says De Blanche. “Indications for October forecast a record month after a slow September, showing that South Africans are taking private trading more seriously.”

Gassner said that finance and insurance queries had also increased during October. He said insurance policies issued through AA Insurance had increased, but AA Finance had shown a reduction in actual completed cases. “While sales are up, consumers are more able to trade in the private space with cash rendered through the sale of their more expensive vehicle,” said Gassner. “This indicates a propensity for South African consumers to reduce their household debt in the face of rising interest rates.”

Trouble-free deals with AA Autobay

AA Autobay’s innovative business model removes the risk and hassle out of buying and selling pre-owned vehicles privately while securing the best price for private buyers and sellers. “The actual transactional prices of vehicles through us are generally pegged between what is considered as trade and retail values, giving both buyer and seller a benefit,” says Gassner.