Ever wondered how long it takes to sell a car in South Africa? Selling a used car in South Africa can be a time-sensitive process, influenced by various factors such as pricing, market trends, and brand popularity. In 2024, the average time to sell a used car in the country was 35 days, although this varied throughout the year depending on the month.
Stock Velocity and Its Importance
Stock velocity (SV), also known as Time to Sell, measures how fast a vehicle is sold within a specific period. According to AutoTrader CEO George Mienie, stock velocity plays a crucial role in dealership operations by determining how quickly inventory turns over and impacting cash flow management.
A high SV indicates that cars are selling swiftly, reducing the time they remain in stock, which in turn minimises holding costs and maximises profit potential. On the other hand, a slower SV can lead to increased costs and stagnant inventory. Dealers who actively monitor and adjust their stock velocity tend to achieve faster turnover rates, ensuring their stock remains aligned with consumer demand.
Trends in Used-Car Sales During 2024
AutoTrader’s Annual Car Industry Report highlights fluctuations in stock velocity throughout 2024. January recorded the slowest selling period, with an average time of 39 days per sale, while September and December saw the quickest transactions, averaging 33 days.
The overall reduction in selling time compared to 2023—by two days—reflects a growing interest in used vehicles as economic conditions improved. This trend was further supported by TransUnion’s Vehicle Pricing Index, which reported a 2.8% drop in used-car prices during the last quarter of 2024. As a result, the new-to-used finance ratio rose from 1.23 in Q4 2023 to 1.56 in Q4 2024, indicating an increasing preference for pre-owned cars.
How Long to Sell a Car: Monthly Stock Velocity Breakdown
Below is a detailed breakdown of the time it took to sell a used car in South Africa during each month of 2024:
| Month | Time to Sell |
|---|---|
| January | 39 days |
| February | 36 days |
| March | 35 days |
| April | 36 days |
| May | 35 days |
| June | 35 days |
| July | 35 days |
| August | 36 days |
| September | 33 days |
| October | 34 days |
| November | 34 days |
| December | 33 days |
Also read: South Africa’s Best-Selling Car Brands of 2024 – Top 10 Revealed
The South African used-car market demonstrated strong performance in 2024, with an overall faster turnover compared to the previous year. Dealers who prioritised stock velocity strategies benefited from increased sales efficiency and better financial outcomes. As market conditions continue to evolve, maintaining a well-balanced inventory aligned with consumer demand remains crucial for success in the pre-owned vehicle sector.
