Sharing a car is now considered one of the new ways that one can use to reduce car repossessions in SA.
Car repossessions have become a pandemic in the mobility industry even though financial institutions have tried to implement several alternative repayment plans for those struggling to pay.
Many South Africans have either found themselves with reduced remuneration or out of a job due to retrenchment since Covid-19 impact, and bank-financed vehicles were left in debt.
A recent study by TransUnion shows that there is a trend in the auto loan market with delinquency rates rising. Almost 3.5% of customers with auto loans are now behind on their repayments.
The TransUnion study also found that, as of second quarter of the year 2022, 3.34% of auto loans were more than 30 days delinquent, and that 1.43% were more than 60 days late on payment. This is the highest rate for five years and a significant rise over the past two years.
The car-sharing industry is a business model for car owners who want to rent their personal vehicles on a short-term basis. The service allows car owners to receive an income when they are not using their cars on a regular basis.
Lanre Olabode, founder of Cridde Car sharing Platform, said: “This is still a market that has not been tapped into in Africa and I believe car sharing is a new way of car ownership and extra income generation in general, it is convenient and I can safely say it is better than Ride-hailing platforms.”
With car sharing, your car’s earnings will depend on a number of factors, such as how often it is available for bookings. Cars that are only shared occasionally earn around R4,500 a month on average, while the top-earning cars which are shared full-time bring in R6,500 to R7,000 per month.
“We believe in the future of car sharing and we want to be a better ally to the finance industry in SA, enabling the best possible way to offset the cost of car ownership and a new way for household income generation in the country.”
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