South Africa’s cost of living crisis is a risk to road safety as buyers flock to older cars and cut back on maintenance costs, says Right to Repair CEO Kate Elliot.
Not only are food and fuel prices stubbornly high, but rising interest rates are taking their toll, with the SA Reserve Bank Monetry Policy Committee having raised interest rates five times since November 2021.
However, an ageing car park with cash strapped consumers is not a problem that’s unique to South African. Graham Stapleton, CEO of Halfords, the UK's leading provider of cycling, motoring services, vehicle servicing and repairs says, “Based on what we’re seeing in our garages and taking into account continuing issues with the supply of new cars, we believe the average age of cars will pass the nine-year mark very soon and could even creep above 10 years before the cost of living crisis eases,” he said.
A similar situation is unfolding in South Africa, Elliott says, and the situation is further exacerbated by the fact that our country has no compulsory Periodic Testing for cars. In the UK, for instance, testing needs to be carried out every year.
Ferose Oaten, National Chairperson of the Vehicle Testing Association (VTA), says there is no requirement for a roadworthy inspection for nearly 80% of the vehicle population in South Africa, and stresses the critical need to focus on vehicle safety.
She sites Regulation 138 of the National Road Traffic Act which was amended in 2014 to include the testing of vehicles older than 10 years every 2 years, at a “date to be determined by the Minister”.
“To date however this has not happened and at present vehicles are still only required to have a statutory roadworthy test on change of ownership,” says Oaten.
Elliott says while this may seem like a double-edged sword, enforcing safety checks on motorists when consumers are already so financially stretched, the good news for motorists is that “Since the coming into effect of the Guidelines for Competition in the SA Automotive Aftermarket, we have seen a general opening up of the market providing motorists with the freedom to shop around to find the most competitive service provider.”
Another problem looming for South African motorists is the tyre tax increase.
Last month the government announced an additional 38.33% excise duty that will apply to tyres imported from China. This is on top of existing excise duties of between 25% and 30%. This means that imported tyres will now have an excise loading of between 63.33% and 68.33%, the Automobile Association said.
The association predicts that many consumers, who are already bombarded with inflation from all angles, will opt to continue using tyres that are in a poor condition because they cannot afford new tyres.