Car buyers from older generations shifted towards used vehicles between 2019-2025, joining younger generations who were already used-dominant.
While the shift helped grow the used vehicle market and defined much of consumer behaviour during this period, the next story in this newsletter - Are affordable new vehicles putting pressure on used car prices? – suggests compelling value propositions from China and India could pull consumers back towards new purchases.
Lightstone’s analysis of data provided to the National Automobile Dealers Association (NADA) 2026 Connect Conference held in March revealed several clear generational shifts in vehicle purchasing behaviour between 2019 and 2025. The data highlighted rising vehicle costs, changing brand preferences, stronger used-car reliance (especially among younger buyers), steady Millennial income growth, and a slow but steady shift toward more gender-balanced purchasing.
Crossovers and compact SUVs gained traction, while affordability remained the defining force shaping generational buying behaviour.
Affordability is reshaping the market
Income data provided context. Baby Boomers and Generation X consistently fell within the R30k–R60k income bracket per month across all years, suggesting relatively stable earning power. Millennials showed a notable shift from R10k–R20k in 2019 to R30k–R60k from 2021 onward, indicating career progression and upward mobility. Generation Z (Gen Z) remained in lower income brackets overall, though there was a modest rise to R20k–R30k by 2025, which aligned with their life-stage progression into early careers.
A gradual diversification of buyers
A consistent trend across every generation – Baby Boomers, Generation X, Millennials and Gen Z – was the gradual narrowing of the gender gap.
While male buyers still dominated overall, their share steadily declined, if marginally, while female participation rose correspondingly. Where this was most notable in absolute numbers was among Millennials (from 37.7% to 38.5%) and Generation X (from 35.2% to 36.8%). Even among Baby Boomers, female buyers grew from 31.7% to 33.8%, a larger proportional increase although still less as a total percentage.
This suggested a slow but clear diversification of the car-buying market, with women playing an increasingly influential role in purchasing decisions.
The rise of used car sales
But perhaps the most striking feature was the growing dominance of used vehicle sales, particularly after 2021, across all generations, which likely reflected economic pressure and affordability concerns.
Baby Boomers swung toward used vehicles in 2021 (53.8%) from 45.2% in 2019 and then returned to a more balanced split by 2023 and 2025. Generation X showed a stronger structural shift, with used vehicles consistently accounting for around 58 - 60% of purchases from 2021 onward.
Millennials and Gen Z displayed the strongest preference for used cars throughout the period, peaking at nearly 70% (Millennials) and 77% (Gen Z) in 2021. Although there was a slight recovery in new vehicle purchases by 2025 among younger buyers, used vehicles remained dominant for Millennials and Gen Z.
Rising vehicle prices reinforced the shift
Price bands reinforced the affordability narrative. New vehicle price ranges increased significantly between 2019 and 2023 across all generations, reflecting inflation and rising vehicle costs. For example, Baby Boomers’ new vehicle price bands rose from R375k-R400k in 2019 to R550k-R600k by 2025, reflecting the joint strongest upward price movement for a generation.
Generation X matched the Baby Boomers with respect to upward price movement, with new vehicle purchases also rising from R375k–R400k in 2019 to R550k–R600k by 2025. Used vehicle price bands also climbed steadily, particularly among Millennials and Gen Z, indicating upward market pressure even in the used vehicle segment.
Different generations, different preferences
While affordability dominates decision-making, generational preferences remain visible. Older generations (Baby Boomers and Gen X) demonstrated strong loyalty to bakkies and established brands such as the Ford Ranger and Toyota Hilux. However, by 2023 and 2025, there was a visible shift toward crossovers like the Toyota Corolla Cross, reflecting broader market SUV growth.
Millennials and Gen Z showed stronger preference for compact and affordable models such as the VW Polo Vivo and Suzuki Swift, though Millennials increasingly entered the bakkie segment by 2023–2025, indicating lifestyle or income evolution.
Could the market shift again?
In the automotive market, the rise of more affordable Chinese and Indian-built new-vehicle brands could undoubtedly shift South African buyer behaviour, and this trend could increasingly encourage new vehicle purchases rather than used ones in the years ahead.
The vehicle market remains one in almost permanent transition, driven by ever changing consumer demands. The trend toward new Chinese and Indian-built vehicles gaining a bigger share of sales relative to used cars will likely be a gradual shift over several years rather than a sudden flip.
