There is more to car buying than just the monthly payment

It is easy to get carried away when buying your first car. Not considering these undermentioned elements, may well cause much heartbreak and stress.

Life is tough and many financial advisers suggest that one not spend money on electronic and luxury goods at this time, as rates increase are most certainly due within the next 20 months.

Although having your own wheels, mean for many freedom, there are many things that can eat into your already-stretched transport budget, if you do not do your homework.

Fuel prices and rising maintenance and tyre costs, mean you have to constantly provide for an increase in these expenses in your budget.

And, if you have selected a linked-interest rate in your repayment plan, interest rate fluctuations will also have an impact on the total amount,” said Lebogang Gaoaketse, WesBank’s head of marketing and communication.

“This has resulted in the introduction of new brands focused on more affordable models, together with new entry-level options from established brands,” Gaoaketse said. “These options enable customers to tackle affordability at a lower price point to lower their monthly expenses, without sacrificing the benefits of owning a new vehicle.”

The illustration underneath shows that vehicle ownership costs have, on average, increased by R2 515 per month compared to 2018.

“It is important to remember that the monthly vehicle ownership basket figure is based on data that constantly shifts in relation to market activity and is thus intended as a guideline only. The economic impact of Covid-19 created an anomaly in relation to the 2019 data and should also be taken into consideration when comparing the 2022 figure in relation to 2020 and 2021,” said Gaoaketse.

The bottom line is that consumers need to take every precaution to not overextend themselves and to this end, the Wesbank Calculator can be a useful and enabling tool to use when you consider upgrading or replacing your vehicle.

Source: MotorPress

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