Prices are rising and consumers are feeling the impact. Everyone is looking for ways to lower their costs, from choosing cheaper alternatives to cutting luxury items out of their budgets. One thing is certain: many people cannot afford to be without cars. Yet, the prices of vehicles are increasing too, pushing the limits of affordability for some consumers. How can you beat inflation while still driving a decent vehicle? Choosing a rent-to-own car is one solution.
Both new and old car prices are rising
Both cars and fuel are getting more expensive, making it increasingly costly to be a motorist. Global trends show that used cars are 30% more expensive than they were a year ago, while new cars have increased in price by about 11%. The trends in South Africa are more or less consistent with these global figures. Demand for cars increased at the beginning of 2021 after dropping at the height of the pandemic during 2020. As manufacturers struggled to keep up with the renewed demand, prices rose accordingly. At the same time, inflation was inevitable as the unprecedented amounts of cash that were pumped into the global economy by various governments as a means of economic relief.
Avoiding the effects of inflation
It is not a simple matter to avoid inflation. As prices increase across the board, you still need the same products you needed last year, and so you can’t avoid paying the increased prices. At the same time, salaries seldom keep up with inflation, leaving most consumers short at the end of the month. However, there are ways to lessen the impact of inflation, from cutting luxury spending to choosing cheaper alternatives. When it comes to cars, traditional financing simply may not cut it. Renting to own is an effective alternative.
Why consider a rent-to-buy car?
A rent-to-buy car is a more affordable and flexible option than buying a car outright or applying for a car loan. You can select a car that suits your budget, and even downgrade if you are looking for a way to soften the blow of inflation. Earn-a-Car offers a range of quality rent-to-own cars at accessible prices. Contact us for more information.