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Daily Maverick
29-05-2025
- Automotive
- Daily Maverick
The true price of owning a car
Most prospective buyers of a vehicle tend to focus on its purchase price when figuring out if it's affordable. But there are many other factors to consider because they will inflate your monthly costs. Having recently bought a new car, I've found it quite a big adjustment getting used to a vehicle loan instalment going off my bank account after not having to pay one for eight years. That said, buying a car is about so much more than its financing. I found WesBank's recent calculations about car ownership costs incredibly helpful. These calculations look at the estimated total monthly expenses associated with owning and maintaining one of the top-selling hatchbacks locally. The data also shows how the total cost of ownership has changed over time. 'Despite the recent improvement in passenger car sales, South Africa remains a price-sensitive market,' says Lebo Gaoaketse, head of marketing and communication at WesBank. 'This means when they decide to buy a car, new or used, most buyers base their decision primarily on the purchase price. But it's important to look beyond just that and consider the total cost of ownership, which is influenced by several other factors.' Cost breakdown For a mid-range hatchback with a retail price of about R294,000, including VAT, you can expect to pay an estimated monthly instalment of R5,554.80. Cars in this price range include the Volkswagen Polo Vivo 1.4 Comfortline, Kia Picanto 1.2 EX manual, Suzuki Swift 1.2 GLX, Toyota Starlet 1.5 XS and the Fiat 500 Cult. The instalment is influenced by the interest rate linked to the vehicle financing contract, which in turn is influenced by factors such as your credit score and the loan term. It's important to note that the interest rate will vary between customers, depending on their credit profile. Insurance options If you're financing your car through a bank, insurance is compulsory before you drive it off the showroom floor. But even if your vehicle is not financed, insurance protects you against losses that might result from an accident or theft. Insurance premiums vary depending on factors such as the make and model of the car, as well as the driver's history and location. For the model in question, a comprehensive insurance premium of R1,827.24 monthly can be expected. It's worth noting that even if you have comprehensive insurance, the amount you owe the bank includes interest and is usually significantly more than the value of the car, especially in the first four years of ownership. Credit shortfall insurance is a valuable add-on to your policy. I made a point of letting my family know that I had taken this option in case I end up dying in a car accident, because I wouldn't want them stressing about the debt. Nor would I want to be stuck paying off the debt if my car is written off. Fuel costs Fuel is one of the largest recurring expenses for car owners. Gaoaketse recommends that you estimate your monthly fuel costs, determine your car's fuel consumption rate and the distance you travel each month. The average monthly fuel costs for the vehicle in this scenario are R3,902.50. This is where your choice of car can make a massive difference. Although I didn't have a car instalment previously, I was forking out between R4,000 and R6,000 a month on fuel – the 'perk' of living two hours away from the city. Swapping my gas-guzzling SUV for a hybrid car has been an absolute game-changer, and the difference at the fuel pumps still astounds me two months later. Continuing maintenance Routine maintenance is important to ensure the safe and reliable operation of your vehicle. In the WesBank example, you could expect to pay in the region of R475.75 per month, or R5,709 annually, for running costs, including routine maintenance and general upkeep. Total monthly mobility costs When combining the monthly instalment, fuel, insurance and running costs, the total monthly cost for one of the bestselling hatchbacks in South Africa comes to R11,760.29 – marginally higher than the average total cost of ownership in 2024, which was R11,578.70 per month. Historical data Reviewing historical data, the increase in the total cost of vehicle ownership becomes apparent. For instance, because of vehicle price inflation, the estimated monthly instalment for the study model has jumped from R2,417.03 in 2012 to R5,554.80 in 2025. Insurance premiums have increased from R802.66 to R1,827.24 over the same period, and fuel costs have ballooned from R1,856.75 to about R3,902.50 per month. 'Viewing the cost of vehicle ownership from this perspective is important and underscores the need to objectively and honestly evaluate one's affordability level before signing a long-term vehicle finance contract to ensure a fulfilling vehicle ownership experience,' says Gaoaketse. DM PS the numbers in this story were hypothetical and not what Neesa Moodley is paying for her car.
TimesLIVE
27-05-2025
- Automotive
- TimesLIVE
Suzuki SA breaks ground on new headquarters
Suzuki Auto SA, in partnership with real estate group Fortress, has officially broken ground on its new head office and distribution centre at Longlake Logistics Park in Gauteng. The sod-turning ceremony was held on May 21, marking a milestone for the Japanese carmaker, and reinforcing its long-term commitment to the SA market. The company will relocate from its headquarters at Linbro Business Park to a custom-designed, 24,507m² facility that will accommodate operations and workforce. Construction is scheduled for completion by mid-2026. The new facility will include 2,900m² of office space and 19,100m² of warehousing, along with advanced training facilities, boardrooms, a workshop and a 100-seater canteen. The warehouse will feature a clearance height of 15m for optimal vertical storage, and large yards and easy vehicle access to support efficient logistics operations. Suzuki has been the brand to watch over the past few years. Local sales have been rising steadily, with the brand netting 5,977 unit sales in April 2025, claiming the number two best-seller spot below Toyota's 10,363 sales. The best-selling Suzuki model during the period was the Swift with 2,053 units, making it SA's best selling passenger car in the same period. The latest Suzuki Swift has replaced the rival Volkswagen Polo Vivo as the country's best selling hatch. Image: Supplied It's also important to note Suzuki's contribution to Toyota's dominance. The brands have a partnership that sees Suzuki supply Toyota-badged models. The nameplates make a big portion of the larger Japanese brand's April sales wins. 'The move marks a significant chapter in our journey,' said Berto van der Lith, vice-president and CFO of Suzuki Auto SA. 'Our new headquarters will allow for further improvements in our operations and support the growth we foresee in the coming years.'
The Citizen
22-04-2025
- Automotive
- The Citizen
SA's used car market shows positive momentum in March
The SA used car market continued its positive trajectory in March, reflecting a healthy demand and increasing retailer confidence, according to the latest data from AutoTrader. The average price of a used car saw a slight increase to R417 688, marking the second consecutive month of price growth and bucking the historical seasonal trend of price contraction in March. While overall used car demand in the SA grew by 1.0% year-on-year, the supply increased at a faster rate of 5.7%, which tempered more significant price rises. Nevertheless, used cars continued to sell quickly, with an average selling time of 25 days, down two days from February, indicating strong consumer engagement. Petrol cars were the fastest selling fuel type, averaging just 24 days on forecourts. The used electric vehicle (EV) market in SA is experiencing significant shifts, with supply surging by 54.7% year-on-year, outpacing the demand growth of 35.9%. This imbalance is putting downward pressure on used EV prices, making them a more attractive option for buyers. In contrast, prices for petrol and diesel vehicles saw modest increases. AutoTrader analysis suggests that despite improving pricing confidence among retailers, there are still opportunities to capitalise further on the current demand. The data indicates a resilient SA used car market adapting to evolving supply and demand dynamics. Top 10 sold used models in March 2025 Ranked by the most sold Model Sold Count Price (R) Average Mileage (km) Average Registration year Average 1 Ford Ranger 1,753 R492,129 78,856 km 5 years old 2 Toyota Hilux 1,493 R464,244 107,683 km 6 years-old 3 Volkswagen Polo Vivo 1,248 R202,428 55,115 km 4 years-old 4 Volkswagen Polo 1,222 R267,514 72,390 km 6 years-old 5 Toyota Fortuner 688 R481,459 105,041 km 6 years-old 6 Suzuki Swift 506 R201,812 36,976 km 3 years-old 7 Mercedes-Benz C-Class 478 R381,532 105,534 km 9 years-old 8 Isuzu D-Max 473 R447,403 69,427 km 3 years-old 9 Toyota Starlet 467 R238,141 33,466 km 2 years-old 10 Nissan NP200 434 R177,817 86,044 km 5 years-old Source: Michelle Muir / AutoTrader Used Car Sales Data: 1 – 31 March 2025
