IT’s budget week and government has finally woken up to the fact that all is not well with the economy. The word austerity has been used a great deal which conjures up images of Greece and people unable to draw money out of cash machines, banks in dire straits and shortages of food.
In spite of what the doomsayers have to say, we are not there — but the purse strings are being pulled a little tighter this year.
Many will look at the budget and assume it is all about the national economy, but it is also about your economy at home and in your business. This week we look at the actual cost of running an average family hatchback in SA. While it is nowhere near as expensive as countries such as China, our beloved motor car makes quite a dent in the household budget every year.
Rising costs undoubtedly brings up the subject of downsizing. It is something the manufacturers are really getting to grips with. BMW’s decision to end production of the 3 Series in SA in favour of producing X-model crossovers and SUVs is an example of how times are changing. An SUV was the top seller in Europe for the first time in 2015 and many are predicting a decline in the traditional sedan market.
However, the term SUV does not mean big. Audi will reveal its small Q2 at the Geneva Motor Show next month and BMW has dramatically enhanced its new X1. Mercedes has its GLA and GLC and models such as Ford’s Ecosport and Kuga and the Nissan Qashqai are flying out of showrooms.
Smaller models are packed with equipment including safety, luxury and connectivity. The very latest might be in a model such as the BMW 7 Series or Mercedes S-Class, but the technology that debuts in the high end models is filtering down the chain faster than ever. Just look at the level of connectivity and luxury we experienced in the new Ford Ranger — go to page 6.
It makes for an interesting landscape. Car prices are on the up but cars lower down the chain are becoming better equipped and more sophisticated. Badge snobbery and bragging rights still play a role, but for many it is about buying smarter. The adage you should buy the best you can afford has never been more true and never as well catered for by car makers as now.
Picture: THINKSTOCK
IT’s budget week and government has finally woken up to the fact that all is not well with the economy. The word austerity has been used a great deal which conjures up images of Greece and people unable to draw money out of cash machines, banks in dire straits and shortages of food.
In spite of what the doomsayers have to say, we are not there — but the purse strings are being pulled a little tighter this year.
Many will look at the budget and assume it is all about the national economy, but it is also about your economy at home and in your business. This week we look at the actual cost of running an average family hatchback in SA. While it is nowhere near as expensive as countries such as China, our beloved motor car makes quite a dent in the household budget every year.
Rising costs undoubtedly brings up the subject of downsizing. It is something the manufacturers are really getting to grips with. BMW’s decision to end production of the 3 Series in SA in favour of producing X-model crossovers and SUVs is an example of how times are changing. An SUV was the top seller in Europe for the first time in 2015 and many are predicting a decline in the traditional sedan market.
However, the term SUV does not mean big. Audi will reveal its small Q2 at the Geneva Motor Show next month and BMW has dramatically enhanced its new X1. Mercedes has its GLA and GLC and models such as Ford’s Ecosport and Kuga and the Nissan Qashqai are flying out of showrooms.
Smaller models are packed with equipment including safety, luxury and connectivity. The very latest might be in a model such as the BMW 7 Series or Mercedes S-Class, but the technology that debuts in the high end models is filtering down the chain faster than ever. Just look at the level of connectivity and luxury we experienced in the new Ford Ranger — go to page 6.
It makes for an interesting landscape. Car prices are on the up but cars lower down the chain are becoming better equipped and more sophisticated. Badge snobbery and bragging rights still play a role, but for many it is about buying smarter. The adage you should buy the best you can afford has never been more true and never as well catered for by car makers as now.
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