South Africa’s automotive market may still be navigating affordability pressures, but rising vehicle finance applications suggest that consumer confidence is gradually returning.
Following positive January 2026 vehicle sales figures that confirmed the industry’s upward trajectory, data from WesBank shows strong demand for both new and used vehicles across multiple segments of the market.
According to WesBank, 78, 983 consumers applied for finance on new vehicles in January 2026. This while 136, 067 finance applications were submitted for used vehicles. This underscores the continued dominance of the pre-owned market in a constrained economic environment.
Importantly, the bank clarified that these figures reflect applications received, not approvals.
“The figures quoted reflect total applications received, not approvals,” WesBank said in a response to questions from SW Motoring.
“While WesBank does track approvals, declines and applications deferred for further assessment internally, we do not publicly disclose this breakdown and report only on total applications received.”
Applications span wide range of categories
The data further reveals that demand is not limited to passenger cars. WesBank confirmed that the application volumes span a wide range of vehicle categories. These include passenger vehicles, light, medium and heavy commercial vehicles, minibuses and taxis, motorcycles, quad bikes and other land transport categories.
Within the broader totals, passenger vehicles accounted for the bulk of applications, with 64, 591 new passenger vehicle finance applications and 113, 937 used passenger vehicle applications recorded in January. Light commercial vehicles followed, with 9, 836 new LCV applications and 18, 278 used LCV applications.
The strong showing from used vehicles aligns with broader market trends. This as consumers continue to seek value and affordability amid elevated interest rates and rising living costs.
Chinese brands gaining traction
With Chinese vehicle brands continuing to gain ground in South Africa’s sales rankings, questions remain around how prominently these brands feature in finance application data.
WesBank, which is the official finance partner to brands such as Geely and GWM, said it does not disclose brand-level or country-of-origin data as part of its external reporting.
“While brand-level data can be filtered internally, we do not release percentage splits by brand category as a matter of policy,” the bank said.
However, insight from Absa Vehicle and Asset Finance — who are official vehicle finance partners of BYD, one of the world’s leading electric car manufacturer — suggests that Chinese-manufactured vehicles are beginning to reflect their growing presence in the market.
Henry Botha, Head of Strategy at Absa Vehicle and Asset Finance, said applications for Chinese vehicles broadly mirror national sales trends.
“Within the overall mix, applications for Chinese-manufactured vehicles closely mirror the broader market trend reported by Naamsa [National Association of Automobile Manufacturers of South Africa], where these brands contributed 19% of new-vehicle sales last month,” Botha said.
Entering used-vehicle market
He added that Chinese brands are also beginning to make their way into the used-vehicle finance space as earlier purchases age into the secondary market.
“In the used-vehicle market, about 6% of Absa’s finance applications originated from Chinese manufacturers, reflecting the fact that these vehicles are now entering the used-vehicle cycle,” Botha said.
Absa further confirmed that used vehicles continue to dominate its application volumes.
“Used vehicles represent about 60% of applications received, which highlights the ongoing shift towards more affordable mobility solutions,” Botha said.
Interest rates, currency offer cautious optimism
Looking ahead, WesBank believes macroeconomic conditions could provide some relief for consumers in the coming months.
WesBank Head of Marketing and Communication, Lebogang Gaoaketse, said the repo rate remaining unchanged at 6.75% in January, coupled with the prospect of interest rate cuts later in the year, could help support vehicle demand.
“The repo rate holding steady in January and the possibility of cuts in March should give consumers some cautious optimism,” Gaoaketse said.
He added that currency stability could also play a role in moderating vehicle prices.
“If the rand’s appreciation to multi-year highs against the dollar remains stable, it will help moderate vehicle prices. The continued presence of competitive imports will also give buyers a wider range of options across segments.”
While affordability challenges persist, the surge in finance applications suggests that South African consumers are once again engaging with the market. Thus signalling cautious confidence rather than outright restraint as 2026 gets underway.
