The interest rate hike announced on Thursday is set to hurt embattled motorists even more. Pictures: iStock, Motorpress
Consumers, already burdened with sky high fuel prices, will this December feel the pinch even more after the latest interest rate hike on Thursday.
As widely predicted, the South African Reserve Bank’s decided to increase the repo rate by 75 basis points which sees the prime lending rate increase from 9.75% to 10.5%. The hike means that motorists who financed their vehicles by means of an interest rate linked to prime – or at any given percentage above or below prime – will have to fork out 0.75% more on their monthly instalments.
While the increase may not amount to much more than a loaf of bread per month for those paying off cars bought for less than R100 000, it amounts to big numbers at the other end of the scale.
ALSO READ: Petrol price hike: Here’s what it’ll cost for a full tank
A monthly instalment of a pre-owned 2015 Datsun Go 1.2 Lux selling for R65 000 financed at prime interest rate will only go up by around R22. But a new Land Rover Range Rover that retails for almost R3-million will now be almost R60 000 per month with the increase of R1 021 almost equating to the Datsun Go’s total monthly instalment.
Another important number to take notice of is the total interest payable over the duration of the vehicle’s finance. While the interest rate hike will see the owner of the Datsun pay R1 324 more over a five-year term, the 0.75% hike will see the Range Rover’s interest go up by a staggering R61 267 over five years.
To indicate the effect the interest rate increase will have on consumers relying on vehicle finance, The Citizen Motoring have compiled a list of 10 new popular cars in South Africa ranging from R156 900 to R1.6m.
Our numbers are based on finance calculated over 60 months with a 10% deposit and 20% balloon payment based on the new prime interest rate of 10.5%.
The indicated prices are base listed prices that do not include optional extras offered by the carmaker or any administrative or on-the-road costs usually charged by dealerships.
The monthly repayment amounts indicated are inclusive of the finance initiation fee and monthly admin costs.
Suzuki S-Presso 1.0 GL
Price: R156 900. Instalment: R60 increase from R2 669 to R2 729. Total interest: Up R4 219 from R38 087 to R42 306
Renault Kiger 1.0 Zen
Price: R229 999. Instalment: R79 increase from R3 820 to R3 909. Total interest: Up R5 291 from R63 807 to R69 098
Ford EcoSport 1.5TDCi Ambiente
Price: R322 500. Instalment: R165 increase from R5 345 to R5 510. Total interest: Up R9 924 from R89 658 to R99 582
Volkswagen Polo hatch 1.0TSI 85kW R-Line
Price: R445 500. Instalment: R172 increase from R7404 to R7576. Total interest: Up R10 284 from R127 151 to R137 435
Isuzu D-Max 1.9TD double cab L manual
Price: R 511 400. Instalment: R197 increase from R8 488 to R8 685. Total interest: Up R11 803 from R157 741 to R145 938
Toyota Fortuner 2.4 GD-6
Price: R623 200. Instalment: R240 increase from R10 322 to R10 562. Total interest: Up R14 377 from R177 764 to R192 141
Audi Q3 35TFSI S line
Price: R708 400. Instalment: R272 increase from R11 721 to R11 993. Total interest: Up R16 539 from R202 028 to R218 567
Hyundai Staria 2.2D Executive 11-seater
Price: R829 900. Instalment: R319 increase from R13 714 to R14 033. Total interest: Up R19 136 from R236 607 to R255 743
Mercedes-Benz C220d AMG Line
Price: R1 008 749. Instalment: R388 increase from R16 649 to R17 037. Total interest: Up 23 253 from R287 525 to R310 778
BMW X5 xDrive30d M Sport
Price: R1 620 510. Instalment: R622 increase from R26 689 to R27 311. Total interest: Up R37 339 from R461 698 to R499 037
ALSO READ: Five new cars under R300k to give you bang for your buck
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