Vehicle dealerships and their customers are feeling the pain of the new National Credit Act. As banks adjust to the stringent requirements of the Act, vehicle dealerships were surprised to find most new loan applications being declined in the first two weeks of June.

However, according to The Mercury, banks said that implementation was proceeding smoothly, although loans were taking longer to grant and there had been a slight decline in loan applications this month. The National Automobile Dealers’ Association Director, Gary McGraw, said that vehicle finance approvals were taking much longer than before June 1, when the Act came into force. John Lourens, Dealer Principal of Weiss Volkswagen in Durban, said business had been ‘really tough’ this month and that some customers’ hopes of buying new cars had been dashed. ‘It used to take less than a day to get approval but now it takes two to three days,’ he said.
Full report in The Mercury (subscription needed)