Young people in their early 20s are more likely to buy secondhand cars and stretch their budgets to afford vehicles and homes, according to Standard Bank’s inaugural youth barometer released this week.
The study, which examined the spending habits of the bank’s customers aged 18 to 35, said as many as 73% opted for pre-owned cars between January 2024 and May 2025 as they were overstretched and also accepted that used cars were an entry into the car market.
Derrick De Vries, the head of automotive retail at Standard Bank vehicle and asset finance, said most young customers could not afford to raise deposits for their vehicles. “Without financial support —and affordability being a major constraint for this segment, especially younger age bands — most don’t put a down payment,” he said.
De Vries said between January 2024 and May 2025, 65.1% of young Standard Bank customers financed their vehicles without a deposit. “Only 34.9% managed to put down an upfront payment, showing young buyers’ reliance and need for full vehicle finance options,” he said.
Customers aged 18 to 35 make up 37.7% of the banks’ vehicle finance customers. Balloon payments — a lump sum due at the end of the vehicle finance period — was also an option for this segment, but not significantly more than older customers. It said 41.4% of young customers use balloon payments.
“The balloon value tends to be slightly lower among youth, likely an indication of affordability assessment norms, or that while young buyers use balloon payments, they do so more conservatively,” De Vries said.
According to the study, youth who prefer Volkswagen held 19.3% of financed volumes, followed by Toyota and Suzuki.
“We see a blend of affordability, reliability, and aspirational value in these brands and models our youth customers buy. There’s also a strong focus on brands offering strong resale value, cost-effective servicing and value for money, with Chery, one of the Chinese brands coming through in the top 10,” De Vries said.
In terms of households the average loan amount for the under-35 segment is R1.2m, compared to older home buyers who are approved for loans averaging R1.5m, and 75% of them are approved for term loans of 20 years.
The bank said this mirrored the “affordability realities facing younger buyers”, citing that higher loan to value pointed to lower deposits, while longer loan terms are likely used to manage monthly instalments. “Young buyers are clearly stretching to get onto the property ladder but remain within acceptable risk levels,” said the bank.
Tumelo Ramugondo, the bak's head of credit cards, said clients under 35 used credit cards for essentials like groceries, dining out and transport. He said younger customers are increasingly using Buy Now, Pay Later (BNPL) services. In 2023 they completed R102m in BNPL purchases.
“By 2024, this figure had nearly doubled to R200m. This growth reflects broader market trends, with younger consumers drawn to flexible, digital-first credit solutions.”
What emerges is not a story of recklessness or short-termism, but a portrait of resilience and resourcefulness. These are pragmatic decision-makers, conscious of their limits, but unwilling to be defined by them.
— Tshiamo Molanda, head of youth & mass market segments at Standard Bank
He said the under 35s took a measured approach to credit and mostly used credit to service their retail store accounts, personal loans, and entry-level credit cards, unlike older generations, who tend to have broader access to secured credit and high-value facilities.
“Still, young people appear to take a measured approach to credit, even if it’s unsecured,” he said.
Ramugondo said young people generally hold fewer credit cards, make smaller purchases, and repay balances more frequently.
“While this suggests a responsible mindset, it may also be a reflection of constrained incomes rather than deliberate financial planning. This is further supported by the finding that once credit is available to them, youth use it extensively.”
For example, the average credit limit for 18- 24-year-olds is around R20,000, matching their affordability thresholds. But utilisation is high, with many using over 70% of their available limit, indicating a reliance on credit to fund both necessities and lifestyle expenses.
“This paints a complex picture: youth are cautious and frequent payers. But their credit is often stretched close to the limit,” said Ramugondo, adding that under 35s demonstrate more frequent and cautious repayment behaviour compared to other age groups.
“Many use their credit cards regularly while maintaining an outstanding balance, that they repay monthly.”
Tshiamo Molanda, head of youth & mass market segments at Standard Bank, said the report unpacks how this generation is navigating adulthood.
“What emerges is not a story of recklessness or short-termism, but a portrait of resilience and resourcefulness. These are pragmatic decision-makers, conscious of their limits, but unwilling to be defined by them,” she said.
“From saving for their first home to budgeting for reliable transportation — often through second-hand cars — and ensuring their extended families are protected with funeral cover, this generation is making thoughtful trade-offs with intent and maturity.”
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