When is the best time to buy a car in South Africa? Year-end vs. New Year deals

Timing can make all the difference when you’re shopping for a new car. In South Africa, the last few months of the year and the first weeks of the next often bring opportunities for better pricing, extra perks and stronger negotiating power. Let’s walk through why both periods can work in your favour so that you’re prepared – budget-wise and insurance-wise – before you hit the showroom floor.

Why October to December can work in your favour

There are lots of reasons why the last three months of the year are often a smart time to buy a car:

Dealers push to hit annual targets

As the year slowly winds down, car dealers and manufacturer sales teams are eager to hit their yearly quotas. This often means special incentives, cashback offers, low‐interest financing and added extras. To give an example, listings of New Car Specials in South Africa show very competitive deals this time of the year.

Clearing out the older stock

With next year’s models on the way, dealers need to free up showroom space and may offer good discounts on older, outgoing-model vehicles. That’s your chance to pick up a “new” car but without paying for the absolute latest release.

Extra perks to sweeten the deal

Beyond price drops, you’ll often find extras thrown in, like service plans, extended warranties or exciting accessories. These all increase the value of your purchase and reduce costs over time, making year-end an ideal time to buy.

The year-end buzz shows up in the numbers

In December 2024, the new vehicle market in South Africa recorded 41,273 units sold, up 2.5% from December 2023. That said, the broader motor trade, including accessories and used vehicles, saw a slight decline in Q4 of 2024.

So yes, while there’s definitely a year-end rush, it doesn’t affect every segment equally.

Your December bonus could give you a little extra wiggle room

Many people receive a bonus in December, stretching their car-buying budget. Dealers know this too, and often step up their offers – giving you a bit more room to negotiate. It’s a small advantage that can make a noticeable difference on the final price or the extras you get with your car.

Why January might be a great alternative

While the first month of the new year may not have quite the same incentive rush, it can still be a smart time to buy.

Even bigger discounts

During December, showrooms are often busy. The deals are fast, and because of this, the pressure is on. In January, things calm down. You’ll have more time to compare, and dealers might be more willing to negotiate because they’re focused on kickstarting the new year’s sales. What’s more, with most people having finished their holiday spending, there will be fewer buyers, which means less competition.

Less year-end pressure so more negotiating power

December’s a busy time for car buying with all the year-end deals, so demand is higher. But come January, things calm down, and dealers might be more willing to negotiate since they’re focused on kickstarting the new year’s sales.

More options of last year’s models

In January, there are usually plenty of models from the last year, and you might find more choices than you would at the end of December when stock starts to thin out. So, you get both a good price and a decent selection to boot.

New financing deals

Banks and dealers often launch new packages for the new year, which might mean you get to score better interest rates or discover fresh incentives to attract early-year buyers.

Buying early in the year boosts resale value later

By January, most people have finished their holiday spending, so there are fewer buyers around. That means you might get more time to think, better service, and maybe even a little more room to negotiate.

New cars on the dealership floor

Buying a car at the start of the year makes it a “new” model on paper, which is a bonus for resale value if you plan on selling or trading it in after a few years.

A quick overview: Year-End VS. New Year

Here are a few financial tips for car shopping (so you’re fully prepared)

• Get pre-approved for finance: Knowing your budget ahead of time gives you negotiating power and helps you avoid surprises with interest rates or deposit requirements.
• Check trade-in values: If you have an existing car, do your homework on what it’s worth. Then you’re not caught off-guard and can make sure you’re getting the most from your deal.
• Don’t forget insurance costs: The cost of motor insurance varies depending on model, usage, region, etc. As part of your car budget, get a couple of quotes in advance so you’re clear on ongoing monthly costs.
• Consider registration timing: Remember that registering in January (even if you bought in December) can help your car look “newer” to future buyers.
• Check early-year promotions: If you wait until January, look out for fresh deals specifically promoted for that period – they may not last long.
• Budget for the extras: Dealer accessories, service plans and warranty extensions are perks but may add cost. Make sure you weigh them in.