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Car trends 2025 – What you’ll be buying this year

For South African drivers, whether you are in the market for new wheels or simply window-shopping, it’s always interesting to ask the experts for their thoughts about the vehicles set to make a splash in 2025, the new vs used market and the rise of Chinese vehicles in SA. 

 

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In this episode of Everything Counts, host Marius Roberts is joined by automotive insiders, Sean Nurse, Motoring Editor at AutoTrader and Editorial Director, Ian McLaren, from Car Magazine to unpack the biggest car trends for 2025. This discussion covers everything you need to know before buying your next vehicle, including an insightful Q&A on the do’s and don’ts of vehicle finance with Keshnie July, Investec Lending Product Owner.

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Host and motoring expert, Marius Roberts chats to experts - Sean Nurse Motoring Editor at AutoTrader and Editorial Director Ian McLaren from Car Magazine. This discussion covers everything you need to know before buying your next vehicle, including an insightful Q&A on the do’s and don’ts of vehicle finance with Keshnie July, Investec’s Lending Product Owner.

 

40
Cars featured by Car Magazine's cars to come in 2025
2024
AutoTrader's car industry report
328M
Searches conducted in the reporting period (6 months)
64M
Total site visits
17mins
Average engagement time

Are SUVs still popular? What are consumers buying? Are the Chinese models making a real impact? Where should you spend your money? And then very importantly, how are you financing it?

Let's start with Car magazine’s guide for 2025. Ian explains, “We compile our annual look ahead to what new vehicles you can expect to see on South African roads and what each brand is willing to confirm and what news remains guarded.”

This year, it’s difficult to ignore the Kia Tasman. “It's very different to what Kia's design language is. With its blend of bold, rugged styling and considered execution, Kia’s Tasman double-cab will look to blaze its own trail in a highly competitive segment.”

Kia has a long history of building military vehicles for the South Korean military. “And a lot of the inspiration for the styling of the Tasman apparently came from that. It's just a super unique vehicle. A lifestyle oriented double cab that's got sort of concept car styling. So I'm excited for it.”

Sean looks forward to driving the Porche GT3, purely because it might be the last naturally aspirated GT3. “There's also a Chinese brand called Jetour that has a lot of hype around it.” Although there are mixed driving impressions of these crossovers and SUVs, the price point is competitive, starting at R500 000.” The brand promises to effortlessly transition from family escapes to dominating the daily commute.

Sean adds that AutoTrader produces an incredibly popular annual consumer report. “I think it is everyone's guilty pleasure when you have a bit of spare time. You’re Googling how much a car costs, what can I get for my budget? I think that's where the platform gets all its views. And from that, we can garner exactly what consumers are shopping for.”

Marius remarks that average engagement time on AutoTrader is over 16 minutes. “That tells you that people are very engaged. They want to look into the details of each car. They are really researching the cars they are interested in. They want to know what they're buying.”

AutoTrader's car buying journey provides users with comprehensive information of each car, ensuring that “When you are ready to go to that dealership, you are armed with all the information you need to buy the car.” Explains Sean.
 

The new vs used car market

5%
Year-on-year increase in used car searches

According to AutoTrader's car industry report, the most popular car in South Africa is the Toyota Hilux, loved for its reliability and rugged performance. This bakkie is perfect for both city driving and off-road adventures, and its strong resale value and reputation keep it at the top of sales charts, showcasing South African loyalty to the brand.

“Hilux vs Ranger. It is the bakkie battle of the century in South Africa.” Sean starts. “And Hilux wins in the new car market. However, in the used market, there is a notable shift where the Ranger is the best-selling pre-owned car in the country. I think Toyota's reliability and longevity plays against it in the used market, because the Hilux retains its value more. Consumers are shopping for value. They can get a slightly lower mileage Ranger for the same, if not less, money than a Hilux. It's fascinating to see how it changes.”

The report shows that the average mileage on the used car market is sold at 75 000 km, on average is a 2019 model, with an average price just over R400 000.

"Just imagine how much car you are getting. A new car with no extras will cost you way more than R400 000 - so big value still remains in the used car market.” Says Marius.

Ian adds, “There are great warranty periods being offered on new cars these days. So if you're buying a second hand car, there's a good chance there's still a warranty and a service plan. If it's been looked after, it has a full service history too.”

Consumers are buying with budget in mind and their wallet and it shows in how different the new and used markets are at the moment.
 

SUV market is still thriving

 “My wife has a VW T-Cross. I would have bought her a Polo. But she wants to sit a little bit higher, taller. In her mind, she feels less vulnerable. So. definitely there's still a want for that raised ride height.” Ian explains.

Interestingly, Sean explains that the data shows that in the top 10 most searched models, there's only two SUVs - the BMW X3 and the Fortuner. Everything above it is performance cars.

“So what South Africans are searching is not necessarily what they are buying. There's an aspirational element to it. Toyota sells more Hiluxes a week than Porche sells 911s in a year. But the 911 ranks 10th for the most viewed models in the first six months of the year. But then when consumers are going out to buy, they are going towards SUVs in the new market, which is an interesting trend. In the used market, we still have that more traditional hatchback, especially budget hatchback and double cabs.”
 

The Chinese manufacturers

In Sean’s opinion, there is an oversaturation of new Chinese brands. "These cars have the same issue. There's this grabby dual clutch gearbox. They are heavy on fuel. They're not the best in low speed situations."

Ian agrees. “It’s a substance thing. If I drive a German or Korean car, there's substance to it. You feel like it's been built by a company that's been building cars for years. With brands like Jetour, I felt like the steering was woeful and the throttle calibration is terrible, which is going to affect your fuel consumption.”

There is a rite of passage to becoming a reputable manufacturer. And a car is more than just a sum of all of its parts.

Ian cites Hyundai as an example. They have a seven year warranty on the engine. “How many warranties are still in play and how many warranties have been called on? There is a piece of mind and parts are available. The other thing is fuel consumption. What is the difference in price for a Volkswagen or a Hyundai versus a Chinese car over a year?”

Shaun agrees. “For Mitsubishi, there is something like 0.0036% warranty burn rate in South Africa. That's almost negligible. These cars don't break. I would love to see the warranty burn rate for the new Chinese products. The Chinese aren't proven in the market yet. I can't tell you what it's going to be like in 10 years.”

Marius adds “The only thing I always advise people on is to have a look at the dealer network. Which dealerships in your local area have adopted those brands? Are they well known, respected, reputable and know their market?”

For Marius, Suzuki is a brand that looked at the South African target market and did it right. For example, the Swift. “They have absolutely smashed it. They've been around for years. They're tried and tested. There's the reliability that goes with it and their fuel consumption is what is claimed.”

Sean concurs. “Our research showed that of the 10 cheapest cars in South Africa, six of them were Suzuki's and two of them were Toyota's that were rebadged Suzuki's. They've clearly struck a chord with local consumers.
 

Question and answer session

Finance - Choosing the right car for your lifestyle and budget

Once you know exactly what kind of car you’re interested in, consider how to finance it. Are you purchasing the car outright or will you need a car loan?

Marius sat with Keshnie to get some financing insights. 

  • What sort of guidance do you give to your clients when it comes to financing a vehicle?

    What sort of guidance do you give to your clients when it comes to financing a vehicle?

    We are about wealth creation. So, we look at the profile of our clients to see what they can afford. And, we try and put them in a position that allows them to build wealth, even with the purchase of a vehicle.

    At Investec, we require that they have a Private Bank Account before they look at qualifying for vehicle finance with us. We also offer pre-approvals to make the journey a little bit more seamless for them. Making sure that by the time they go to the dealership they know exactly what they can afford.

    I think when you're determining your affordability, it's really important to create some room, especially in the used vehicle space. You never know what you're buying. There might be emergency repairs, tyres that need replacing, and then they's insurance to consider.

  • What type of deals do you generally see being done through Investec?

    What type of deals do you generally see being done through Investec?

    We definitely see a mix. We see a wide range of needs, from clients that want to buy a collector's item, to a graduate that wants to purchase their first car, or a high net worth client that wants to change cars every few years. 

  • What do you think about balloon payments?

    What do you think about balloon payments?

    Personally, I've never done a residual. I'm very nervous about having to pay that amount of money at the end of the 5-year term. I think there's a caution there around affordability. You should never really try and redo the deal based on a balloon payment because your affordability is marginal then. You're setting yourself up to fail at the end of the term when you have this lump sum to pay and you cannot pay it. Many people end up having to refinance for another five years or maybe buying a different car.

     

  • When do you recommend that people use a residual?

    When do you recommend that people use a residual?

    Clients who prefer to change their car every two to three years and are very liquid, are usually best suited to take up a residual. In that case, they're quite happy to take the loss on the retail value.

    You need to be able to comfortably afford a balloon payment at the end of the term.

  • Why do banks not ensure that their clients hold their insurance throughout the period of their vehicle finance deals?

    Why do banks not ensure that their clients hold their insurance throughout the period of their vehicle finance deals?

    That's absolutely true. And I think that's a bank-wide problem, right? Once the car is purchased and ready to leave the showroom, the bank will ensure that the vehicle is insured. But it becomes very difficult to monitor that going forward.

    I think that's something that banks are still trying to solve holistically.

     

  • Are individuals still opting for 72 month finance deals or what trends are you seeing?

    Are individuals still opting for 72 month finance deals or what trends are you seeing?

    I don't see the trend where clients are opting for shorter periods, they're going with the maximum term, but often they’re paying off the debt much sooner.

  • Interest rates impact vehicle sales, do you think we could see further interest rate cuts in 2025?

    Interest rates impact vehicle sales, do you think we could see further interest rate cuts in 2025?

    It's really hard to predict, but it's reassuring that we've already seen interest rate cuts. I'm hopeful this will positively impact the vehicle market and lead to an increase in sales. I also hope that people's affordability isn't too restricted, but the unpredictability of macroeconomic factors makes it hard to say for certain. So, my guess is as good as yours.

Keshnie July | Lending Product Owner at Investec
Keshnie July, Lending Product Owner at Investec

I think when you're determining your affordability, it's really important to create some room, especially in the used vehicle space. You never know what you're buying. There might be emergency repairs, tyres that need replacing, and then there's insurance to consider.

Buy a car that makes sense in the long term

Marius concludes. “It’s so easy when dealing with cars to get caught up in the aspirational elements of it and it's all about passion. But when it comes to signing on the dotted line, this decision must be made with your head. What is your affordability? You've got to think longer term here as well. And probably the most important thing for me is insurance. Accidents do happen. So don't find yourself in that situation with a vehicle that is no longer insured, but you still have to honour that debt.”
 

Must knows

Related questions

  • How to maintain your car’s value

    How to maintain your car’s value

    Taking care of your car is crucial for both its longevity and resale value. Regular car maintenance, like sticking to warranty and servicing plans, keeps your vehicle running smoothly and helps you avoid expensive repairs later. Plus, knowing your right to repair can save you money down the line.

    When it comes to car resale value, things like mileage, condition, and service history really matter. You’ll want to think about whether it’s better to keep your car for a decade or trade it in every five or six years - each choice has its benefits.

    Holding on to your car can save you money, but newer models often come with the latest technology and better fuel efficiency. By staying on top of maintenance and making smart decisions about how long to keep your car, you can enjoy a reliable ride and get a better return when it’s time to sell.


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