What Soaring Petrol Prices Mean for Motoring in 2022

December is usually a time for reflection, but Park Village Auctions has opted to help consumers brace themselves for what lies ahead instead. PVA Director Clive Lazarus says that the cost of living will get more expensive and predicts that affordability will be the name of the game in 2022.

Lazarus: “With the petrol price breaking the R20 per litre barrier, transport costs will invariably go up; food costs and the general cost of living follow suit. South Africans will need to find smart ways to reduce expenses—and that may well mean replacing petrol guzzlers for fuel-efficient vehicles.”

One may think that acquiring a newer set of wheels would be counterintuitive to saving, but Lazarus postulates that this tactic could be a prudent way to keep costs low.

“When looking at vehicle costs, you must consider repayments, insurance, fuel consumption and maintenance collectively. A paid-off car is not necessarily a cheaper car if you have to repair and replace parts continually. It’s no secret, either, that older models less fuel-efficient.   

“That’s not to say a brand-new car is a silver bullet—far from it. New car prices are exorbitant due to global semiconductor shortage, which has negatively impacted the availability of new cars,” explains Lazarus.

According to Lazarus, auctions hit the “sweet spot”, making newer models available at a fraction of general retail rates. This enables lower principal debt, which means lower instalments. Many bank repossessed vehicles are still under maintenance plans, says Lazarus and—depending on the model purchased—motorists may even find favourable insurance rates for their new wheels.  

Park Village Auctions hosts monthly passenger and commercial used vehicle auctions on behalf of several major financial houses, including Standard Bank, BMW Financial Services, ABSA Bank, and liquidators. Auctions will resume from 10 January 2022.