Finance institutions advise consumers that the relief from lower fuel prices could be short-lived.
News24 reported on 26 August that WesBank is advising consumers not to plan their budgets around August’s drop in fuel prices.
“The petrol and diesel prices are influenced by a depreciating rand and international oil prices – both volatile factors that could see prices increase in the coming months. The relief from lower fuel prices will most likely be short-lived.
“Given the prevailing economic conditions, consumers who are currently in the market for a new car should consider the long-term impact on their budgets, and carefully structure their finance contracts.
“They should use large deposits to help lower the monthly instalment amounts, and consider a fixed interest rate to safeguard themselves against future interest-rate hikes.
“Longer repayment terms could also assist with affordability, but buyers should be very cautious when considering balloon payments.
“Insurance and maintenance costs should also be included in mobility budgets.” – News24
