Repo rate hikes hammer car owners
"It's killing me. I am considering returning my car and opt to commute to work by taxi," one 28 year old motorist told the Courier.
As economic hardships persist and interest hikes continue to rise, a growing number of motorists find it difficult to keep up with their car payments.
Some vehicle owners on the North Coast now face the predicament of returning their cars to ease the burden on their monthly budgets.
Tongaat’s Nokulunga Dlamini bought her VW Polo a year ago, initially paying an instalment of R3 500 per month. This has since escalated to more than R4 000, including insurance, because of soaring interest rates.
Dlamini said apart from general cost of living increases, rising petrol prices further add to her financial strain.
“It’s killing me. I am considering returning my car and opt to commute to work by taxi,” the 28-year-old said.
KwaDukuza resident, 33-year-old Reece Chantre, echoed Dlamini’s concerns about the challenges of vehicle ownership.
Initially paying R4 800 per month for his car, he now pays more than R5 000, excluding insurance.
He said over the past three to four months his instalment has increased three times. His travel expenses from Stanger to Ballito have risen from R7 000 per month to a staggering R8 500, if this continues, he said he would have to consider returning his vehicle.
The latest hikes in the Reserve Bank’s repo rate have resulted in banks and other financial entities to significantly raise their lending rates, severely impacting vehicle owners not locked into fixed interest rate arrangements.
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