How to Interpret Car Depreciation Charts in South Africa: A Complete Guide

Understanding Car Depreciation in South Africa

Car depreciation refers to how your vehicle loses value over time. Whether you're selling a damaged, non-running or accident-damaged vehicle, interpreting car depreciation charts is key to setting realistic expectations and maximising your offer. South African car owners face unique factors: market trends, availability of parts, and brand desirability all play a role.

How to Read a Depreciation Chart

A typical depreciation chart plots "age of car" against "market value". Let's break down what you'll see on a standard South African depreciation curve:

Use these figures as estimates. Market conditions, brand popularity and maintenance history all shift the numbers. For accident-damaged or non-running vehicles, additional deduction factors apply-see the next table for reference.

Key Depreciation Influencers - South African Context

• Brand/model reputation and local resale demand
• Ongoing maintenance and service history
• Major accidents, insurance write-offs or mechanical failure
• Mileage (high mileage accelerates depreciation)
• Economic environment (fluctuating used market demand)

Depreciation and Damaged Vehicles

When a vehicle is damaged, the standard depreciation curve no longer applies in full. Offers drop further, depending on damage type, repair cost, and market desirability.

Practical Examples: Chart Reading in Action

Let's say you own a 5-year-old hatchback in Johannesburg, purchased new for R250,000. According to local depreciation charts, after 5 years it might retain roughly 50% of its original value (R125,000)-before considering damage. If it sustained moderate accident damage, offer values could drop further by 20-40% (R75,000-R100,000).

If the same vehicle is non-running or written off, you may receive closer to R25,000-R50,000, depending on salvage demand and parts value in South Africa. Accurate chart interpretation helps you anticipate the range you might be offered by professional buyers.

When to Sell: Depreciation and Timing

• Depreciation is steepest in years 1-3; consider selling before costly wear or mechanical faults emerge.
• If your vehicle is accident-damaged or has frequent breakdowns, prompt selling avoids deeper value losses.
• Older fleet vehicles and private cars over 7-10 years may be more valuable as salvage than as trade-ins.

Legal & Paperwork: What Matters in SA

• Proof of ownership: Needed for any sale, even salvage.
• Deregistration: Required if the car is written-off; professional buyers usually assist.
• Under finance: You need settlement confirmation before sale; finance houses must release the title.
• Roadworthy (where applicable): Not required for salvage sales, but be ready for relevant documentation checks.

Tips to Maximise Your Offer

• Present service records and receipts if available.
• Take clear, honest photos of all damages and overall condition.
• Highlight recently replaced parts - tyres, battery, brakes add marginal value.
• Be transparent about vehicle history for effective price discovery.

Sources

• National Association of Automobile Manufacturers of South Africa (NAAMSA)
• AutoTrader: Vehicle depreciation in South Africa
• Sell Your Damaged Car: Sell Damaged Cars
• SARS: Motor Vehicle Sales and VAT