26% prime lending rate for South African car buyers

• The South African Reserve Bank has hiked the repo and prime lending rates for the second time this year, spelling bad news for car loan repayments.
• The prime lending rate is the benchmark interest rate South African banks use to price vehicle finance, among other things, and always sits 3.5% above the repo rate set by the SARB.
• The National Automobile Dealers’ Association said higher interest rates will add more pressure on already struggling household budgets.