Interest rate drop is good news, says NADA

“The National Automobile Dealers’ Association (NADA) welcomes this decision, which offers meaningful relief to consumers and businesses alike in a persistently challenging economic climate. Lower interest rates enhance vehicle affordability and will help energise demand in both the new and pre-owned vehicle markets, particularly in cost-sensitive segments,” says Brandon Cohen, Chairperson of NADA.

The rate cut comes amid heightened global uncertainty, with South Africa facing the prospect of export tariffs as high as 30% following an impending trade deadline set by the United States. While broader economic challenges remain, SARB’s decision sends a positive signal and may help strengthen domestic resilience.

Brandon notes that although this may be the final window for monetary easing in the near term, with inflation having remained within SARB’s 3% to 6% target range for nine consecutive months, the cut is a step in the right direction. “The automotive retail sector remains resilient, and dealers continue to support customers through tailored finance solutions and value-driven offerings,” he adds.