With interest rates in South Africa at their lowest in 30 years, it’s not surprising that the number of new cars sold is still on the increase. But, that’s not to say that rising fuel prices, higher food prices and the general pressure on people’s pockets aren’t having an impact on the car market.
Figures coming out of Standard Bank South Africa’s vehicle finance area show that there was a 4.1% rise in new cars sold in the first three months of this year, compared to the same period in 2012. That’s 163 092 more!
That said, there is a change in what people are buying. Much smaller engine capacities and more efficient cars are currently the choice of in the market for a new car.
While smaller cars have remained below the R200 000 price mark, they boast the extras and safety standards of mid-range cars, along with the added bonus of having better fuel consumption.
It can be said that South Africans are spending more wisely with a long-term view to avoid rising fuel prices and turning towards environmentally-friendly transport by choosing cars that burn less fuel.