Jamaican households are now feeling the combined effects of rising prices and high interest rates, and for many, that pressure is starting to show in how they buy — and keep — their cars.

Economist Keenan Falconer says the impact of what he describes as a “twin shock” is now catching up with consumers, following a Jamaica Observer canvas which found that some Jamaicans are opting to park their vehicles and use public transport.

“I think the twin shocks of surging inflation in the immediate post-COVID period and subsequently high interest rates to contain it have potentially caught up with a lot of individuals and household budgets,” he told the Sunday Finance. “Those budgets have become more strained amidst slowly growing incomes, and that has necessitated an increase in borrowing — and consequently a deterioration in credit quality.”

That pressure is already influencing behaviour.

In recent weeks, a Kingston-based merchandiser told the Sunday Finance he had begun parking his car during the workday and using the bus to move between stores, after rising fuel costs pushed his daily spending to levels he could no longer sustain. By cutting back on how often he drives he said he was able to reduce his daily transport bill significantly.

As of April 30, 2026 Jamaica’s ex-refinery fuel prices have continued their upward trend, with Petrojam listing E-10 87 gasoline at $185.63 per litre and E-10 90 at $193.08 per litre. Retailers apply mark-ups to these prices, resulting in higher pump prices across the market. At the same time, grocery bills have climbed, utilities remain high, and borrowing costs have yet to ease.

For many households, particularly those in the middle- to low-income bracket, the car sits right in the middle of that squeeze.

It is one of the largest recurring financial commitments outside of housing. Loan payments are fixed. Insurance must be maintained. Repairs sometimes come without warning, and fuel costs move unpredictably. Even parking, in some areas, has become an added expense.

“Car dependency has become so embedded in Jamaica’s transportation system, and our policy framework is effectively car-centric. Because of the relatively greater safety and convenience, private motor vehicles are often preferred to public transport, as the benefits of ownership are seen as outweighing the costs,” Falconer told the Jamaica Observer.

“As a result, banks and other lending institutions are only too willing to continue financing that demand. Everything feeds back into an over-concentrated transportation system that emphasises car ownership,” the economist added.

But culture also plays a role. In many communities, a vehicle is still one of the most visible signs that someone is “coming up”. Not driving, or driving an older vehicle, can sometimes attract unwanted comments. Even the type of vehicle carries meaning. Smaller cars, though cheaper to insure, fuel and maintain, are sometimes dismissed as not masculine enough or not impressive enough, pushing some buyers toward bigger and more expensive choices than their income can comfortably support.

Falconer said those perceptions matter.

“Those perceptions also feed into individual tastes and preferences, and that might come in at the more expensive side,” he said. “In some cases, with persons now being unable to sustain that level of consumption that is associated with higher-end vehicles, the result [is] that you will now have a further deterioration in credit quality.”

In April, National Commercial Bank Jamaica moved to auction 110 repossessed vehicles with a combined asking value of $437.3 million, ranging from a 2022 Porsche Cayenne to a 2016 Nissan AD wagon. The listing included vehicles manufactured between 2012 and 2024, with several 2024 units among them, pointing to stress among some recent borrowers rather than only older loan portfolios.

The same report noted that non-performing loans across the banking sector reached $45.3 billion in January 2026, up 20 per cent year on year, with consumer loans accounting for two-thirds of that figure.

The strain is not only showing up in loan books. It is also playing out on the roads.

Traffic congestion has worsened across Kingston and other urban centres, with longer commute times adding to the costs for motorists. Civil engineer Christopher Burgess, in a recent commentary on the issue, described congestion as a structural problem, driven largely by traffic volume and limited road capacity. He estimated that the burden now runs into the tens of billions annually, with lost time and fuel consumption weighing on the wider economy.

The problem, he noted, is not simply the number of vehicles, but the lack of reliable alternatives.

“The problem is largely one of sheer traffic volume, compounded by a growing lack of trust in public transport,” he said, while pointing to constraints in road capacity and weak enforcement of traffic use as contributing factors.

Falconer sees the same imbalance, but questions whether expanding road networks offers a lasting solution.

“Our car-focused transportation policy is really also evident in the insistence that continued road widenings and upgrades will permanently alleviate the problem,” he said. “But several roads… have undergone extensive improvements… and with time, the addition of more private motor vehicles have caught up with the last round of expansions.”

That dynamic leaves many households, particularly at the lower end of the income scale, with few practical alternatives.

“As urbanisation really continues, the introduction of mass transit will become even more urgent,” he said. “Mass transit is not meant to replace all cars on the road but it will ensure adequate diversification… that enables greater consumer choice.”

At the same time, he said the conversation should extend to alternative modes of transport, including cycling.

“Beyond just implementing more cyclability for health reasons, it should also be coupled with making our urban spaces more walkable,” he said.

FALCONER…I think the twin shocks of surging inflation in the immediate post-COVID period and subsequently high interest rates to contain it have potentially caught up with a lot of individuals and household budgets.