Secondhand is the new new: What that means for South African drivers

Secondhand cars have definitely become the preferred option for South Africans hitting the road in the last few years. Don’t believe us? The data backs it up: in the first half of 2024, over twice as many people applied for used car loans compared to new car loans, underscoring how affordability drives consumer choice.Given high interest rates and cost-of-living pressures, the allure of a pre-owned vehicle is clear – a sensible, practical solution without the steep price tag. But while secondhand cars come with impressive benefits, you’ll need to be proactive to keep your ride running smoothly and affordably.

The perks of going pre-owned

Buying a used car can feel like a win-win, and here’s why:

1. Cost savings right out the gate

That new car smell isn’t the only thing that’s destined to fade. New cars typically lose value the moment they’re driven off the salesroom floor, with depreciation hitting hardest within the first few years. Used cars, on the other hand, have already taken that initial depreciation hit, allowing you to get more car for less money. What’s more, when it’s time to sell, your vehicle’s resale value tends to hold steadier, which is a big plus if you plan on trading in or selling down the line.

2. Lower insurance premiums

With a lower market value, used cars could potentially come with more affordable insurance premiums compared to their brand-new counterparts. This translates into savings on monthly premiums, which can be a significant factor to consider as you budget.

3. A wider range of choices

The secondhand market provides access to a broad range of models and years, including some that are no longer available new. Whether it’s an older, trusted model with a reputation for durability (hello, granny’s Toyota Corolla) or a more recent release with fewer miles, the used market offers options to suit virtually every budget and need.

4. Less anxiety over wear and tear

Unlike new car owners who worry about every tiny scratch or chip, used car owners often find that a minor blemish here or there doesn’t stand out as much (of course those who are bothered by the odd scratch can always just opt in for scratch & dent cover). Because the car has already “lived,” there’s less pressure to keep it in showroom condition, which can add to the relaxed experience of ownership.

But hold on before you race off to the used car lot…

While secondhand cars are cost-effective, they come with one significant caveat: most will come with warranties and maintenance plans that are near their end, or that have already expired.

This is where adding a motor warranty or a service plan can make a big difference. A motor warranty covers specific mechanical breakdowns, helping to ease the financial hit of sudden, costly repairs, while a service plan covers routine maintenance essentials like oil changes and brake checks. Hippo’s comparison platform makes it easy to explore options for both motor warranties and service plans, letting you find coverage that suits your car and budget. With these safeguards in place, you can enjoy your secondhand car with confidence, knowing that you’re prepared for whatever the road brings.

A few other things to keep in mind

Of course, buying a used car requires some diligence to make sure you’re getting a reliable vehicle. Always buy from reputable dealers who perform the necessary checks and maintenance before selling. Also, consider the vehicle’s history, including mileage, any past accidents, and maintenance records. Taking these precautions can go a long way toward a great experience with your used car – and insurance for repairs is the ideal backup if any issues do arise.

For South Africans looking to balance cost with quality, the secondhand route is clearly a savvy choice. So whether you’re eyeing a beloved Toyota Hilux, a rugged Ford Ranger, or a reliable VW Polo, make sure you have the right protection in place. With the right insurance, your secondhand ride can stay on the road, hassle-free, and ready for any adventure.

This article is for informational purposes only and does not constitute financial, legal, medical or insurance advice. Hippo is a comparison site helping you evaluate quotes from trusted South African insurers. Always review policy details before making changes. Quotes are risk profile dependent and subject to annual review. No fees are charged for using Hippo’s comparison service. HAS (Pty) Ltd and HCS (Pty) Ltd are authorised FSPs. Terms and conditions apply.