New Chinese cars are driving down prices on South Africa’s used-car market — TimesLIVE
Affordable new cars from Chinese and Indian manufacturers in South Africa are putting pressure on the value of used vehicles. As a result, some owners are finding it harder to trade in their cars without making an additional payment on their loans: the price offered by a dealer may be lower than the outstanding loan balance. This is reported by TimesLIVE, citing car dealer Combined Motor Holdings.
Decline in used-car sales
Combined Motor Holdings, which represents 31 automotive brands through its dealership network in South Africa, including Chinese and Indian marques, reported a 10% decline in used-car sales by unit volume. The gross margin in this segment decreased by 4.7%.
The company said owners were surprised by the sharp depreciation of some Chinese and other Asian models that had been sold at discounts four to five years ago. Some buyers are forced to keep using their cars longer while waiting for the trade-in valuation to match the remaining debt to the bank.
Not all models lose value at the same rate
At the same time, the data do not support the claim that all Chinese cars depreciate faster than traditional competitors. According to TransUnion, the Chery Tiggo 4 Pro lost 27.1% of its value over three years, while the Kia Sonet lost 20.5%. The Haval Jolion declined by 25.4% over the same period, compared with 21.7% for the Volkswagen T-Cross.
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Other studies by Cars.co.za, Business Day and AutoTrader showed that the residual value of certain popular Chinese models may match or exceed that of established brands.
The role of lending terms
The greatest pressure on the used-car market comes from the growing number of affordable new vehicles: buyers have less incentive to pay relatively high sums for cars with mileage. Chinese brands’ share of South Africa’s new passenger-car market rose to 16.8% in 2025, from 11.2% a year earlier.
Financing terms also affect the situation. Loans with a large final payment reduce the monthly instalment but leave a substantial amount due at the end of the term. If the trade-in price does not cover the debt, the owner must make an additional payment, refinance the final payment or keep the car. In South Africa, the maximum car-loan term increased from 72 to 96 months, and 96-month agreements accounted for 10% of all car-loan deals in July 2025.
