The downgrading of the country’s economy to junk status is already making its mark in the automotive industry.
Access to credit, the weakening of the rand, as well as inflation and perhaps higher interest rates, means that consumers have less money to spend and that they will have to keep their vehicles for much longer before they can be replaced.
This is the opinion of Derick de Vries, Chief Executive Officer of Auto Information Solutions.
More than 70% of new vehicles are being imported at present, and the depreciation of the rand will lead to an extraordinary increase in motor prices.
Ultimately, it will be only officials and ministers who can afford expensive new vehicles at the expense of taxpayers.
Read the original article in Afrikaans on Die Vryburger
South Africa Today – South Africa News