US tariffs hit new car prices - shoppers are turning to pre-owned

US trade tariffs are reshaping South Africa's new car market.

The US government's sweeping automotive tariffs, a 25% levy on South African vehicle exports and a broader 30% tariff on goods, have sent shockwaves through South Africa's car manufacturing sector. Mercedes-Benz temporarily suspended its East London assembly line. BMW's Rosslyn plant faced sharply reduced export competitiveness. And new vehicle pricing for local consumers is feeling the squeeze.

While the US Supreme Court struck down portions of the tariff framework in February 2026, dropping South Africa's general rate from 30% to 10%, the vehicle-specific 25% tariff under Section 232 remains in force, and that window is temporary, expiring around July 2026. For South African manufacturers, the uncertainty is far from over.

The result? South Africans are buying smarter, and the pre-owned market is booming.

Online car marketplace Weelee explains why savvy buyers are turning to pre-owned vehicles - and why the timing has never been better.

THE NUMBERS TELL THE STORY

• South Africa's used car market is forecast to grow from $12.89 billion in 2025 to $13.75 billion in 2026.
• 383 410 pre-owned vehicles were sold in 2025, generating R160.1 billion in sales, up 7% year on year.
• South Africa's new vehicle market hit a 15-year high of 596 818 units in 2025, flooding the pre-owned market with quality near-new trade-ins at competitive prices.
• Easing interest rates (prime at 10.25%) are making pre-owned vehicle finance more accessible than in years.

HOW SOUTH AFRICAN CONSUMERS ARE RESPONDING

Industry data paints a clear picture of a market in transition. South African consumers are not shying away from buying cars, they are simply buying more carefully. The 2025 AutoTrader Annual Car Industry Report, drawing on data from over 46 million users, found that the dominant theme of the year was restraint: buyers prioritised affordability, practicality, and long-term running costs over status or novelty.

The sweet spot in this market is quality pre-owned vehicles that have already absorbed much of the steepest depreciation, retain modern safety and tech features, and offer predictable running costs. SUVs dominate this segment, accounting for over 37% of all pre-owned sales in 2025, reflecting South Africans' preference for versatility across varying road conditions.

Petrol vehicles remain the most popular choice at nearly 64% of the used market, but hybrid vehicles are quietly gaining ground, forecast to grow at the fastest rate through to 2031 as infrastructure slowly catches up with consumer interest.

“Global trade uncertainty has a way of clarifying priorities for South African consumers,” says Errol Levin, CEO Weelee South Africa. “When new car pricing comes under pressure, the pre-owned market does not become a compromise, it becomes the intelligent choice. We are seeing exactly that shift. Buyers who might previously have stretched for a new vehicle are discovering that a quality pre-owned car offers exceptional value, modern features, and none of the new-price premium. The stock entering our market right now off the back of record new car sales in 2025, is some of the best we have seen,” Errol concludes.