Total car ownership costs in South Africa

The real cost of owning a car in South Africa

Owning a car in South Africa can quickly add onto the monthly expenses, even if you’ve paid the car off. Rather, you should calculate the total cost of ownership using the following factors: fuel, maintenance, and insurance. It’s said that one should expect to keep around 55% of their budget above the repayment amount. 

We also recommend that you look at the breakdown and tips we’ve listed under each factor so that you get a better idea of what you’re actually paying for.

The cost of a vehicle

As an example for this article, let’s look at one of SA’s popular budget-friendly vehicles, the Hyundai Grand i10. 

TIP: You can use an installment calculator to get a general estimate of what the monthly payments will cost.

Example

If you want to finance a new Hyundai i10 for the base price of R239,500 - you would end up paying a set fee of R4963p/m over a period of 72 months. Keep in mind, this is at an interest rate of 14.25% - without extras and without a deposit. The total amount will also depend on if you decide to trade in your current vehicle. 

In this example, the total price you’d actually pay at the end of the 72 months (with interest) = R357,336. You’d need to spend an additional R117,836 over that period.

Car Insurance fees

When it comes to getting comprehensive car insurance, the cost will vary for each driver – depending on your age, credit history, location, tracker, and other factors. 

TIP: Before you dive in headfirst, go insurance shopping so that you can find the best quote that suits your lifestyle and budget.

Petrol fees

Petrol has become increasingly expensive and how much you pay for petrol will depend on your fuel consumption, how much you drive, how you drive, and whether you’re on the open road or not. 

TIP: Be sure to fill up as driving on low fuel will damage your car overtime, adding unnecessary costs to preventative repair.

Maintenance and repair

If you’ve purchased a vehicle without a Service Plan or Maintenance Plan, or if yours has expired, then any wear-and-tear repair will become costly. This is especially true should you go without backup support. 

The big picture

If you’re in two minds about buying a new vehicle, do your research so that you know what you’re up against and can budget accordingly. Whether you have a family or if it’s just you and your partner, planning for the future while trying to get the very best in the present can be challenging, but it doesn’t have to be this way. 

TIP: Simply be mindful of what you’re spending and remove habits that are preventing you from enjoying your overall driving experience.