If you are wanting to upgrade your car but are in two minds about whether it is a good time to buy a new car or not, you’re not alone. 2020 was a disastrous year for the global economy due to the crippling effect of Covid-19-related lockdowns. And, while the economic interruptions are far from over, things are looking up. In South Africa, many forms of relief have been put in place to help consumers weather the storm; such as lower interest rates, small businesses relief funds and tax breaks. While offering relief for private individuals and business, these measures have also created a much better climate to buy a car. Consumers in South Africa are now seeing good deals on financing as well as excellent prices on last year’s models.
But, with that being said, is 2021 a good year for you to buy a new car? Here are a few reasons 2021 is a good year for you to upgrade and buy a new car:
Borrowing is cheaper
If you were planning on buying a car on hire purchase, and you can comfortably afford the repayments then 2021 is a good year for you buy a new car. Interest rates on loans are lower, which means borrowers can finance more vehicle for less money over the long term. A word of caution however is that once the economy bounces back, those rates are almost certain to go up increasing your monthly payments. It is important to keep this in mind when selecting a car to buy. Don’t splurge on a car with repayments you can only just afford at the current interest rate. Opting for a smaller, more affordable car is a safer option to leave room for interest rate increases in the long run.
Also read: Buyer’s Guide: Should You Invest in a New or Used Car?
Older models are cheaper
Car sales plummeted in 2020 and as a result this year we are seeing substantial savings on older models. Dealerships will be wanting to move 2020 models throughout the year and people who are not set on things like features and colour can get great deals by shopping for leftover previous year models. You can search for older model vehicles in your area online to make shopping even easier.
Also read: Buying Guide: Where to Buy Car Batteries in SA
More finance options available
There are also more finance options available for consumers this year. There are attractive options available, including payment holidays, zero deposit deals, and cash back/dealer assistance to make purchasing a vehicle more affordable.
Great deals on redundant models
In 2021, you’re also likely to find good deals on redundant models. If you really want a big saving on newer models, you should consider those that are at the end of their production runs. Discontinued vehicles that are the last of their kind will have an even more attractive price tag for example the Volkswagen Arteon which was discontinued in May 2020 or the Honda Brio or Ford Focus discontinued in late 2019.
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