{"id":685487,"date":"2023-05-07T13:00:36","date_gmt":"2023-05-07T11:00:36","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=685487"},"modified":"2023-05-05T17:13:18","modified_gmt":"2023-05-05T15:13:18","slug":"the-only-cars-still-priced-under-r200000-in-south-africa-right-now","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/685487\/the-only-cars-still-priced-under-r200000-in-south-africa-right-now\/","title":{"rendered":"The only cars still priced under R200,000 in South Africa right now"},"content":{"rendered":"

There are now only seven passenger vehicles that retail for under R200,000 in South Africa, as cars have either been discontinued or seen notable price increases over the years.<\/p>\n

Many experts, banking professionals, and lenders have noted the financial pressures South Africans face due to load shedding, heightened inflation, and consecutive interest rate hikes \u2013 among others.<\/p>\n

This has created a cost-of-living crisis in the country, as food, petrol, and electricity have become notably more expensive \u2013 making the cost of borrowing less attainable for many South Africans.<\/p>\n

This is the central theme as several of South Africa’s major banks noted the rise in credit impairments over the latest reporting period, showing an increase in customers defaulting on their loan repayments.<\/p>\n

In Capitec’s latest financial results, the bank flagged these challenges, recording a massive 80% increase in credit impairments, which amounted to R6.3 billion. The bank attributed the rise in credit impairments to borrowers facing difficulties in repaying various loans, including vehicle finance.<\/p>\n

Cars have become an essential form of transport for most of South Africa, but the list of affordable options is dwindling. Several car makers \u2013 such as Renault, Ford, and Datsun \u2013 have discontinued their entry-level models.<\/p>\n

In contrast, others have increased the retail prices of their affordable options amid the various challenges facing the manufacturing industry.<\/p>\n

For example, Suzuki South Africa has raised the prices of most of its cars as of 3 May, in line with the automaker’s quarterly review of input costs. The decision to raise the prices was affected by many factors, it said, including:<\/p>\n