Absa Research Shows Timing and Demographics Reshape Vehicle Buying in South Africa

Absa Vehicle and Asset Finance presented new insights into consumer behaviour at DealerCon, the first event of its kind in South Africa—s automotive retail industry. Held at the Sandton Convention Centre and hosted by Cars.co.za, the conference drew nearly 1 000 participants from across the sector.

Henry Botha, Executive: Strategy & Product, Absa Vehicle and Asset Finance, explained how the market is shifting. —The vehicle finance landscape is evolving, driven by data, demographics and decisions. Women, mid-life buyers, and value-seekers are reshaping the market — and timing is everything.—

Over the past decade, vehicle finance applications have grown by 65%, while the average value of vehicles financed rose by 54%. Incomes grew by 35%, yet affordability has worsened. —Ten years ago, the average monthly instalment represented 14.3% of a customer—s income. Today, it is 16.1%. Vehicles are becoming more expensive and incomes aren—t keeping pace. This not only signals economic strain, but also of changing priorities,— Botha said.

While used vehicles still account for most purchases, new models are increasingly popular among younger buyers. Brand choices are also shifting. —German brands remain the gold standard, especially among men and younger buyers. Chinese and Korean brands are rising fast, particularly among women and buyers aged 35 to 45. Women are open to new brands, technologies and value propositions,— he said.

Timing is another crucial factor. Analysing 70 000 customer journeys, Absa found that most purchase activity happens within 30 days of an enquiry. —There is as much activity in that single month as there was in the six months before and the six months after. Women are more likely to apply within 30 days at 40% compared to 33% of men. This is critical. The window of opportunity is narrow and powerful,— Botha emphasised.

Charl Potgieter, Managing Executive, Absa Vehicle and Asset Finance, shared further generational insights. —Gen Z buyers behave much like previous generations, constrained by income and buying vehicles that fit their budgets. However, they are more digitally engaged, doing extensive research before making decisions. They remain brand conscious and cautious about new entrants.—

According to Potgieter, older and wealthier buyers are more inclined to embrace new brands, while Gen Z prioritises affordability even though they value sustainability and technology.

DealerCon highlighted how quickly consumer habits are evolving, creating both opportunities and challenges for the industry. Cars.co.za Managing Director, Amasi Mwela, described the partnership with Absa as crucial for navigating these changes. —There—s been such a shift in the industry over the last 10 years— all of us have to change, adapt and move to the next frontier,— he said.

The event is set to become a long-term platform for discussion and collaboration, providing dealers and stakeholders with critical insights into a market undergoing rapid change.

Click HERE to read the full presentation.