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Media release

Media release

Data, Demographics and Purchase Decisions – Absa Spotlights South Africans shifting Vehicle Purchasing Trends at DealerCon

19 September 2025

Demand, opportunity, and timing – these are some of the key factors driving South African consumers’ vehicle purchase decisions.

Speaking at the inaugural DealerCon today, South Africa’s premier annual gathering for the automotive retail industry, Henry Botha, Executive: Strategy & Product, Absa Vehicle and Asset Finance said: “The vehicle finance landscape is evolving, driven by data, demographics, and decisions. Women, mid-life buyers, and value-seekers are reshaping the market – and timing is everything.”

DealerCon, hosted by Cars.co.za, and sponsored by Absa, brought together leaders from motor dealerships, OEMs, financiers, insurers, and policymakers at the Sandton Convention Centre to discuss the future of automotive retail and the challenges of the evolving South African market.

Botha unpacked the journey through the decisions, the preferences, and the patterns that have defined how South Africans buy cars over the past decade.

“We’ve seen remarkable growth in vehicle finance activity. Applications have increased by 65%, averaging 5% growth per year. Income levels have risen by 35%, and the value of vehicles being financed has grown by 54%. The catch, however, is that affordability has deteriorated,” Botha added.

According to Botha, ten years ago, the average monthly instalment represented 14.3% of a customer’s income.

“Today, it’s 16.1%. That’s a significant shift. What does this tell us? It tells us that while demand is growing, consumers are stretching further. Vehicles are becoming more expensive, and incomes aren’t keeping pace. This not only signals economic strain, but also of changing priorities.”

While used vehicles continue to dominate the market – offering value, flexibility, and accessibility – new vehicles are gaining ground, especially among younger, aspirational buyers.

“When we look at manufacturer origin, we see fascinating trends: German brands remain the gold standard, especially among men and younger buyers. Chinese and Korean brands are rising fast, particularly among women and buyers aged 35 to 45. Women are open to new brands, technologies, and value propositions,” Botha explained.

On timing, Absa studied 70 000 customers over the past year to understand how long it took to make a purchase decision.

“We found that the most active period is the 30 days following the lead. There is as much activity in that single month as there is in the 6 months before and the 6 months after. Interestingly, women are more likely to apply within 30 days at 40% compared to 33% of men,” he explained.

“This is critical. It means the window of opportunity is narrow and powerful. If we want to convert interest into action, we must act fast… however, this is not just about selling more cars. It’s about understanding the customer and their needs, their timing, their mindset.”

Charl Potgieter, Managing Executive, Absa Vehicle and Asset Finance noted the generational lens in purchasing trends, with Gen Z buyers showing behaviour that’s both familiar and subtly different.

“Like previous generations, they’re constrained by income and tend to buy vehicles that match their budget and lifestyle needs. However, they are more digitally engaged, doing extensive online research before making decisions.

“They remain brand conscious and tend to stick with established brands, showing hesitancy toward newer entrants,” he explained.

Adoption of new brands was more common among older, higher income segments who are willing to take more risks. “Gen Z also values tech features and sustainability, but affordability remains their primary driver.”

The event drew close to 1 000 registrants and is billed to be a multi-year thought leadership platform through which sector stakeholders can glean practical insights, particularly for dealers.

Managing Director of Cars.co.za, Amasi Mwela thanked Absa for embracing its role as the “bank of the dealer”, adding that: “There’s been such a shift in the industry over the last 10 years… all of us have to change, adapt and move to the next frontier.”

19 September 2025

Demand, opportunity, and timing – these are some of the key factors driving South African consumers’ vehicle purchase decisions.

Speaking at the inaugural DealerCon today, South Africa’s premier annual gathering for the automotive retail industry, Henry Botha, Executive: Strategy & Product, Absa Vehicle and Asset Finance said: “The vehicle finance landscape is evolving, driven by data, demographics, and decisions. Women, mid-life buyers, and value-seekers are reshaping the market – and timing is everything.”

DealerCon, hosted by Cars.co.za, and sponsored by Absa, brought together leaders from motor dealerships, OEMs, financiers, insurers, and policymakers at the Sandton Convention Centre to discuss the future of automotive retail and the challenges of the evolving South African market.

Botha unpacked the journey through the decisions, the preferences, and the patterns that have defined how South Africans buy cars over the past decade.

“We’ve seen remarkable growth in vehicle finance activity. Applications have increased by 65%, averaging 5% growth per year. Income levels have risen by 35%, and the value of vehicles being financed has grown by 54%. The catch, however, is that affordability has deteriorated,” Botha added.

According to Botha, ten years ago, the average monthly instalment represented 14.3% of a customer’s income.

“Today, it’s 16.1%. That’s a significant shift. What does this tell us? It tells us that while demand is growing, consumers are stretching further. Vehicles are becoming more expensive, and incomes aren’t keeping pace. This not only signals economic strain, but also of changing priorities.”

While used vehicles continue to dominate the market – offering value, flexibility, and accessibility – new vehicles are gaining ground, especially among younger, aspirational buyers.

“When we look at manufacturer origin, we see fascinating trends: German brands remain the gold standard, especially among men and younger buyers. Chinese and Korean brands are rising fast, particularly among women and buyers aged 35 to 45. Women are open to new brands, technologies, and value propositions,” Botha explained.

On timing, Absa studied 70 000 customers over the past year to understand how long it took to make a purchase decision.

“We found that the most active period is the 30 days following the lead. There is as much activity in that single month as there is in the 6 months before and the 6 months after. Interestingly, women are more likely to apply within 30 days at 40% compared to 33% of men,” he explained.

“This is critical. It means the window of opportunity is narrow and powerful. If we want to convert interest into action, we must act fast… however, this is not just about selling more cars. It’s about understanding the customer and their needs, their timing, their mindset.”

Charl Potgieter, Managing Executive, Absa Vehicle and Asset Finance noted the generational lens in purchasing trends, with Gen Z buyers showing behaviour that’s both familiar and subtly different.

“Like previous generations, they’re constrained by income and tend to buy vehicles that match their budget and lifestyle needs. However, they are more digitally engaged, doing extensive online research before making decisions.

“They remain brand conscious and tend to stick with established brands, showing hesitancy toward newer entrants,” he explained.

Adoption of new brands was more common among older, higher income segments who are willing to take more risks. “Gen Z also values tech features and sustainability, but affordability remains their primary driver.”

The event drew close to 1 000 registrants and is billed to be a multi-year thought leadership platform through which sector stakeholders can glean practical insights, particularly for dealers.

Managing Director of Cars.co.za, Amasi Mwela thanked Absa for embracing its role as the “bank of the dealer”, adding that: “There’s been such a shift in the industry over the last 10 years… all of us have to change, adapt and move to the next frontier.”