So says the National Automobile Dealers’ Association (NADA) about the South African Reserve Bank’s (SARB) decision to keep the rate unchanged, reflecting a cautious stance in an environment of ongoing economic and geopolitical uncertainty.

Encouragingly, dealers are seeing sustained levels of engagement in the market. Prospective buyers are submitting finance applications and demonstrating clear intent to purchase.

While many had previously delayed final commitments amid uncertainty around interest rates, the decision to hold is expected to provide the clarity needed for consumers to start moving ahead with purchases.

“There is evident appetite in the market, and this decision may help unlock some of it,” says Brandon Cohen, NADA Chairperson. “Consumers have done the groundwork and, with greater certainty on rates in the near term, we expect more of them to proceed with their purchase decisions.”

Looking ahead, NADA expects interest rates to remain on hold in the near term. The timing of any potential rate movements will depend on improved clarity around global factors, particularly oil prices and supply availability and geopolitical developments. While a meaningful easing in these risks could reopen the window for rate reductions, the threshold for cuts has, for now, become significantly elevated.

The association emphasises that South Africa’s dealer network continues to demonstrate resilience despite constrained trading conditions. Greater economic certainty and eventual monetary easing will be critical in unlocking pent-up demand and supporting growth in vehicle sales.