Chinese car brand taking on VW and Toyota in South Africa

Chery has broken into the top ten of most financed vehicles by Standard Bank for young people, breaking the misconception that these cars are only for older individuals. 

This was revealed in Standard Bank’s Youth Barometer report, which analysed data from the bank’s three million personal and private banking clients between the ages of 18 and 35. 

The report revealed that young South Africans are more pragmatic decision-makers and financially responsible than initially thought. 

This was reflected in the most-financed cars, with Standard Bank’s vehicle and asset finance division, where most young South Africans prefer to buy used cars and choose practical vehicles over those with a more image-conscious appeal. 

Individuals under the age of 35 comprise a significant share of the car loan market, accounting for 38% of vehicle loans with Standard Bank. 

Unlike in housing finance, where there’s sometimes some co-signing or financial assistance from parents, it is extremely rare in vehicle finance, making this the first significant purchase that they have to manage on their own. 

Without financial support and affordability being a major constraint for this segment, especially among younger age groups, most don’t put down a payment. 

Between January 2024 and May 2025, 65.1% of youth who financed cars with Standard Bank did so without a deposit. 

Only 34.9% managed to make an upfront payment, indicating young buyers’ reliance on and need for full vehicle finance options.

Compared to typical banking clients, younger individuals stretch their budgets to afford cars, particularly in their early twenties. 

This is because their earning potential is low, and car access is a necessity, with many expecting their salaries to grow and cover the larger instalments. 

The average instalment-to-income ratio for 18 to 35-year-olds is 16.7%, which is significantly higher than the 11.4% average for customers older than 35. 

Young South Africans’ share of the vehicle financing market can be seen in the charts below.

Affordability is king

When it comes to the type and brand of cars that young South Africans buy, affordability is often the key consideration. 

This does not mean that the perception of the brand does not matter to them. Instead, they are pragmatic when it comes to features and quality. 

Standard Bank’s financing data shows that young South Africans greatly favour used cars, with only 27% of volumes being for new vehicles. 

This again reflects budget constraints, but also a growing acceptance of quality pre-owned vehicles as a first step into car ownership.

“We see a blend of affordability, reliability, and aspirational value in the brands and models our youth customers buy,” the head of automotive retail at Standard Bank Vehicle and Asset Finance, Derick de Vries, said. 

There is also a preference for cars with strong resale value, as the trade-in value of the vehicle is a strong stepping stone towards luxury brands. 

As a result, Volkswagen dominates in terms of vehicle financing share, taking up 24% of all volumes among young customers at Standard Bank. 

Another stalwart, Toyota, comes in second place with a 17% market share, while Suzuki rounds out the top three with a 14% share. 

While these three brands are expected to dominate vehicle financing in South Africa, Chery made its entrance into the top ten for the first time. 

The Chinese brand took a 5% market share, on par with Nissan and Renault, after experiencing tremendous growth in South Africa over the past few years. 

This took Standard Bank somewhat by surprise, with young individuals being willing to try new brands without established resale value or support systems in South Africa. 

Furthermore, the majority of vehicles bought at this age are hatchbacks, and Chery does not offer one in the South African market. 

The share taken up by various brands in Standard Bank’s vehicle financing volumes can be seen in the charts below.

This article was first published by Daily Investor and is reproduced with permission.