South Africa’s vehicle finance landscape has shifted dramatically over the past six years, with used car repayments rising at a far quicker pace than those for new models.
During this period, the Consumer Price Index (CPI) advanced by approximately 35%, providing a benchmark for inflationary trends. Data from Lightstone reveals notable changes in the initial loan amounts agreed for Passenger and Light Commercial Vehicles, offering insight into how consumer behaviour has evolved.
In early 2019, motorists committed to an average monthly repayment of R6,890 for new vehicles and R4,660 for used ones. By November 2025, these figures had climbed to R9,080 and R6,980, respectively. This represents a near 30% increase for new cars, with the sharpest spike occurring in 2023 when repayments surged by almost 20% compared to the previous year. Growth slowed slightly in 2024 and 2025, yet the average loan amount for new cars still expanded from R355,000 in 2019 to R470,000 in 2025, likely influenced by extended finance terms.
The trajectory for used cars has been even steeper. Monthly repayments have soared by nearly 50% since 2019, with steady year-on-year gains. The average loan amount for pre-owned vehicles rose from R235,000 to R345,000 over the same timeframe.
As a result, the gap between new and used car repayments has narrowed significantly. In 2019, the ratio stood at 1:1.52, meaning buyers spent R1.52 on new car finance for every rand spent on a used car. By 2025, this ratio had contracted to 1:1.35, underscoring the growing financial weight of pre-owned purchases.
Staff Writer
Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.
