CRA Personal Finance – South Africa
Here are some tips you could use to cut car ownership related costs during these tough times.
Even with the easing of lockdown restrictions, cash-flow stresses are going to be a real concern for many of us for several months to come. Although it is not an ideal situation, succeeding financially through this crisis may mean cutting back or cutting out certain expenses altogether to stay afloat.
Here are some possible tips on how to cut car ownership-related costs during tough times:
With the repo rate cuts since March, the current prime lending rate is at a record low at the moment. This means that you should already be seeing a reduction on your monthly car repayment amount. If you are still struggling with the repayments – contact your financial institution to explore options available to you. These could include a ‘payment holiday’ or refinancing the vehicle. Both options would reduce your current spend. It unfortunately means you will pay more for the vehicle in the long run but will assist greatly during these times.
Several insurers have offered some relief by reducing vehicle insurance premiums for a period of three months. If your insurer has not offered this to you yet, make sure to contact them to ask what they can offer. You could also take some time to shop around for more affordable insurance but be sure to compare the benefits before signing on the dotted line.
Fuel for most
Fuel spend has reduced drastically during April, with limited travelling as well as the reduced petrol price. However, our travel mileage and the fuel price are both numbers that can and do fluctuate. Our best action to reduce fuel spend is to do what you can to manage consumption. Speeding, rapid acceleration, and hard braking are the quickest ways to waste fuel. Stay calm, drive sensibly and save fuel!
Make sure that you do the necessary checks on your vehicle like checking water, oil, brake fluids and tyre pressure. Make sure you eliminate unnecessary repair costs for something that could have been avoided by routine maintenance checks. Handle any easy repairs yourself, like replacing wiper blades, fuses and lights.
Article Credit To Randburg Sun.