Used car repayments surge ahead of new models in South Africa

During the same period, the Consumer Price Index (CPI) climbed by roughly 35%, offering useful context for comparing repayment growth against broader inflationary pressures. Insights drawn from Lightstone’s transactional data also shed light on the average loan amounts agreed upon for Passenger and Light Commercial Vehicles.

The study focused on the initial loan amount agreed to at the start of the repayment term, rather than the overall national average repayment in any given month. In January 2019, buyers committed to an average of R6,890 a month for new vehicles and R4,660 for used ones. By November 2025, these figures had risen to R9 080 and R6 980 respectively.

This equates to an approximate 30% increase in monthly repayments for new vehicles, averaging around 5% growth a year. Notably, most of this surge occurred in 2023, when repayments jumped by nearly 20% compared to 2022.

However, repayments eased slightly in 2024 and 2025. Despite this moderation, the average loan amount for new cars grew from R355 000 in 2019 to R470 000 in 2025, likely driven by longer financing terms.

For used vehicles, the story is different. Monthly repayments have climbed by almost 50% since 2019, with consistent year-on-year growth. The average loan amount for pre-owned purchases rose from R235 000 in 2019 to R345 000 in 2025.

The gap between repayments for new and used vehicles has narrowed considerably. In 2019, the ratio stood at 1:1.52, meaning that for every rand spent on financing a used car, R1.52 was spent on a new one. By 2025, this ratio had contracted to 1:1.35.