MUST-READ: Junk status and your car
Motor Industry Workshop Association explains why you should rather hold onto your car and repair it given the junk status announcement.
South Africans are starting to feel the pinch following the junk status announcement and now is the time to be savvy about car purchases, said Vishal Premlall, Director of the Motor Industry Workshop Association (MIWA).
“Don’t commit to a new car unless you are sure you can afford the repayments, which will likely increase as interest rate hikes kick in,” he said. “Hold onto your asset, i.e. your car, and rather repair.”
He recommended getting a second or third opinion on the repair of your current car before considering purchasing a new car.
“If you can avoid taking on additional debt at this time, that is first prize. By repairing rather than purchasing you invest short-term in your vehicle, which could result in long-term gain when you choose to sell at a later stage.”
Most car purchases are emotional ones with buyers getting swept up by the ‘new-car’ smell, latest features, status associated with brands, and so on. This leads to buyers often over extending on what they can afford in monthly repayments.
“It’s at this point that you need to stop, recalculate, get opinions and make smart decisions. The reality is that the shine of a new car fades when the bills come in and you are overextended,” he concluded.
Do you perhaps have more information pertaining to this story? Email us at randfonteinherald@caxton.co.za (please remember to include your contact details in the email) or phone us on 011 693 3671.
For free daily local news on the West Rand, also visit our sister newspaper websites
Remember to visit our Facebook, Twitter and Instagram pages to let your voice be heard!
