Prolific rate cuts and a slowdown in car price increases has contributed to a R300 reduction in average monthly car instalments, according to new data released by Wesbank.

Prolific rate cuts and a slow down in car price increases contributed to a R300 reduction in average monthly instalments, according to new data released by Wesbank.

Wesbank’s chief executive, Ronnie Watson, said while the motor industry had received strong criticism for failing to drop its prices as the rand strengthened, motorists were in fact receiving greater value for money.

Motor plans, free insurance and other promotional offers all contributed to people essentially paying less for their vehicles.

Watson said with the falling interest rates, consumers were getting good prices when trading in their old cars too.

There had also been a significant rise in the early termination of financing agreements, which indicated that people were changing their vehicles more often as the cost of financing had fallen.

"There was an increase in early termination activity in the last quarter of last year and in the first quarter of this year," Watson said according to a report.

There had also been more business with black buyers while the percentage of Wesbank customers in arrears, at 1,89 per cent in February last year, was at its lowest level yet.

Watson was also convinced that should government be persuaded to introduce private vehicle leasing, the number of potential vehicle owners could double.

Original article from Car