Did you know that owning a car in South Africa is 3.41% cheaper than in the last few year? It’s a fact that when buying a car there are many things which have to be considered, and not only the actual amount of money the car costs at the moment of the purchase. Among the expenditures which need to be taken into account we can mention, for instance, insurance coverage, maintenance costs, parking fees and fuel.
Even if the car is not driven so often, as it was the case last year during the hard lockdown months, many of these expenses are fixed on a monthly basis and add up to each household’s budget. Considering how unstable the economic systems in the world have been the past year, as a consequence of the advent of the Covid-19 pandemic, it should be concluded that purchasing a car would be out of reach of individuals. However, it has been observed that owning a car is now 3.41% cheaper in the country than in, at least, the past two years.
The impact of consequences brought by the pandemic were seen everywhere in the world and not only in South Africa. It is curious to observe how in other countries, due to inflationary tendencies changed by measures taken to reduce the number of people infected, the costs of owning a vehicle increased at overwhelmingly rapid rates. Although not in every country in the world, there are many examples to be taken, which have overcome similar situations.
Owning a car in South Africa is cheaper now
Lately, due to the impact of Covid-19 to the economic activities in South Africa, the use of cars as a means to commute to work has diminished, since more and more people are still working from home. Now, drivers have to keep an eye in the way in which transportation is seen within the Alert Level System, which fluctuates as much as the sanitary situation.
However, statistics show that although not cheaper than in 2015, to be the owner of a car was not as expensive in 2020 as it was in 2019. Many aspects are taken into account when setting these figures, one of them is directly related with insurance premiums.
Car owners compulsorily become buyers of available car insurances which are legally required to buy a car in South Africa if the vehicle purchase is financed in any way. Moreover, being protected by comprehensive coverage provides drivers with a sense of security, which most of the time individuals choose.
Fortunately, there exist many different options when talking about premiums and brokers work to find the one that best fits the driver’s needs and income. Moreover, individuals can also resort to the Insurance Crime Bureau which protects them from insurance crime and frauds.
So, taking into account that the cost of owning a car remains low, although maintenance costs are persistently high, and it is paramount to pay for an insurance policy, this may be a great time to acquire a car. Little by little, the economic situation of the country is stabilizing, and it seems that it will continue to do so. It will take time and a slow process until South Africans can return to their pre-pandemic economic situations, but these opportunities show signs of progress.
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