Motor companies are quick to hike new-car prices in response to a weakened rand, but are less eager to pass on savings to consumers when the currency strengthens.

New-car prices saw major hikes last year after the rand weakened from R14 to R18.30 to the dollar, at a time when consumers were financially constrained due to the Covid-19 lockdown. To help recover exchange rate deterioration, many motor companies hiked prices by more than 10% in the past 12 months, against SA’s official 2020 inflation rate of 3.3%...

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