The National Automobile Dealers’ Association (NADA) supports the South African Reserve Bank’s (SARB) decision to keep the repo rate unchanged at 7,0%, which leaves the prime lending rate at 10,5%. The announcement caught many industry observers and market analysts off guard, as expectations had largely pointed toward a possible rate increase given ongoing macroeconomic strains. NADA said the central bank’s move offers a measure of relief for households and helps sustain the recent performance of the country’s automotive sector, which has shown solid growth through the first six months of the year.
NADA Chairperson Brandon Cohen noted the decision to hold rates steady comes as a reprieve for both consumers and dealers, particularly after widespread speculation that tighter monetary policy was imminent. He added keeping the prime lending rate at its current level supports affordability and encourages buyers to proceed with vehicle finance applications.
Looking for a safe car for a student then click here
The automotive retail industry entered the latter half of 2026 on the back of healthy new-vehicle sales figures, and NADA has pointed to rate stability as an important factor in maintaining that trajectory. The association has its sights set on crossing the 600,000-unit sales mark by year-end, and a stable interest rate environment is seen as key to reaching that target.
Cohen also remarked that purchasing a vehicle typically involves a long-term financial commitment, and that interest rate predictability has a significant influence on consumer confidence. With rates remaining unchanged rather than rising, monthly repayment figures stay within easier reach for buyers, allowing the current upward trend in both passenger and commercial vehicle sales to continue without disruption.
Starting or running a small business and in need of a bakkie – click here
While households continue to contend with cost-of-living pressures and broader economic uncertainty, NADA believes the Reserve Bank’s cautious approach reinforces a sense of stability and helps sustain demand across dealership floors around the country.
Colin Windell for Colin-on-Cars in association with
proudly CHANGECARS
