Monday, 3rd September 2007 at 7:15 am
More cars

With the way things are going with the increase in interest rates, the rand hovering at around 7.4 to the green back, the increasing of fuel prices, the NCA (National credit act) and more importantly in this case, the increase in the number of cars on the South African road, people of South Africa are still able to go ahead and buy brand new cars on a daily basis.

I would have thought all the factors mentioned above would slow down car sales but after Mercedes released their new C Class in South Africa things seem to have changed. It has only been a couple of weeks since this good looking car has graced our roads in South Africa and yet there is already a large number of them on the roads. Where are the people getting the money from? It seems like people were not shy in wanting to buy this beautiful looking machine.

Chances are that most of these cars are being bought through car financing and this new C Class is not coming that cheap! At R292 000 for the cheapest model (considering that this price includes no extras! So that means no sun roof! Who would honestly want a C Class with no sun roof in this day and age?) your monthly repayments are not going to be that low. But many people are stil able to afford this.

There are now just too many cars on the South African roads and very little is being done to help ease the traffic conjestion in the big cities. So more cars means more traffic and more cars means more people in debt. What should be done to help ease the traffic on our roads? Stop selling cars? Make them unaffordable? Nothing should be done? We are in for interesting times.




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Comments

TC on 3 September, 2007 at 12:20 pm #

There is always a lag between the period that rates increase and the time that people begin to feel the pinch of the effects. The time will come…maybe more repossesions of cars and house in the early part of next year! As far as traffic congestion is concerned…maybe lack of planning by the local authorities


Tasneem on 4 September, 2007 at 12:49 pm #

Don’t just make statements, qualify your statements with facts.


Rander on 4 September, 2007 at 12:58 pm #

Facts about which statements?


Rob Harvey on 7 September, 2007 at 8:35 am #

It has now become a total nightmare trying to drive to work in central JHB from Midrand using the M1 everymorning!!!


Trevor on 7 September, 2007 at 8:46 am #

What I don’t understand is how overspending and the new credit act come together? If people are still buying new 4×4’s on credit they can afford it because they qualified for it, that means that that person has enough income to cover all his expenses and afford his new 4×4. How is that over spending if he can afford it?? The guy that doesn’t qualify can’t buy it and thus cant over spend. Where is the logic in that? How can there be bad times ahead if it already hit me?


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