Latest news with #WesBank
The Herald
13 hours ago
- Automotive
- The Herald
May figures: the best-selling cars in SA
May's new vehicle market in South Africa registered 45,308 sales against the 37,139 retailed in the same month last year. It was the eighth month in a row that sales have outperformed those of a year earlier. After five months of 2025, the market is 12.6% ahead of the same stage of 2024, up from 205,771 to 231,719 units. Brandon Cohen, chair of the National Automobile Dealers' Association (Nada), thinks the real market is stronger than it appears as 12 of the 24 Chinese brands selling vehicles here don't report their sales numbers. Lebo Gaoaketse, head of marketing and communication at WesBank, was cautiously enthusiastic about the figures. 'First quarter sales performed better by volume while displaying slower growth, indicating that the month was a solid volume performance rather than an overriding reason to celebrate,' he said. 'While volumes continue to be confidence-inspiring, household budgets remain under pressure,' said Gaoaketse.
Daily Maverick
5 days ago
- 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
6 days ago
- Automotive
- TimesLIVE
How South Africans are adapting to the rising price of car ownership
Car ownership remains an important goal for many South Africans, even as the landscape continues to evolve. According to WesBank, the cost of owning a vehicle in South Africa has increased by 50.6% since 2021, placing further strain on consumers. While new vehicle prices continue to rise — for example, the starting price of a Polo Vivo now stands at R271,900 — drivers still have a range of options, even as factors such as fuel costs, interest rates and insurance premiums fluctuate. For those seeking more accessible options, there are still paths to vehicle ownership, including pre-owned choices, flexible financing and innovative subscription models. According to AutoTrader research, about 60% of financed vehicles in South Africa are used cars, indicating consumers are seeking more cost-effective solutions. 'The South African automotive landscape is undergoing a significant evolution driven by affordability,' said AutoTrader CEO George Mienie. 'Our data reveals a clear consumer shift towards the used car market, highlighting the resilience and adaptability of local buyers in the face of economic challenges. This trend underscores the industry's responsibility to provide accessible and reliable mobile solutions for South African consumers.' This is reflected in the finance application data from Standard Bank, which shows that though new car finance applications dropped by 30% in February 2025, used car applications remained stable. 'While this might not seem like a sharp decline, it's staggering when you consider 35% to 40% of cars we financed a decade ago were new,' said Derick de Vries, head of automotive retail at Standard Bank Vehicle and Asset Finance. Used vehicles have become increasingly attractive to South African buyers, with used car price inflation easing to 1.7% in 2025, down from 5.6% two years earlier. This shift positions used vehicles as a more value-driven option, particularly as AutoTrader reports a growing interest in older models, specifically those with an average registration age of six years. Which vehicles are they buying? While the Ford Ranger and Toyota Hilux continue to dominate the used vehicle sales chart, notable shifts show consumers are increasingly looking at more affordable vehicles. There has been a noteworthy decline in the sales of premium vehicles, with used cars such as the Suzuki Swift, Toyota Starlet and Nissan NP200 seeing an increase in recent months. Last month, AutoTrader data showed these models were in the top 10 best-selling used cars, while premium vehicles such as the BMW 3 Series have dropped off. Aside from the cost benefits of buying more affordable, fuel-efficient vehicles, several other reasons exist for this shift in buying behaviour. While used cars offer immediate cost savings compared with their new counterparts, buyers must weigh this against the costs of servicing and potential maintenance, especially for models that have passed their warranty period. Smaller cars, such as the Swift and Polo Vivo, typically offer lower running costs compared with used luxury and premium cars. Image: Supplied AutoTrader offers several resources to help prospective buyers make informed decisions. The online automotive marketplace features price ratings to help consumers compare the prices of used vehicles with those of similar cars available. Additionally, they offer tools such as an affordability calculator, which enables customers to determine suitable vehicle options based on their monthly budgets. However, when it comes to new cars, affordability constraints have forced consumers to enter new vehicle finance agreements with longer loan terms (72-96 months) and opt for balloon payments, which lead to higher overall costs and an increased risk of repossession.
TimesLIVE
05-05-2025
- Automotive
- TimesLIVE
These were South Africa's top-selling cars as market booms in April
Mabasa expects the Reserve Bank to cut interest rates further, though inflation is expected to trend higher in the second half of 2025 due to global developments. Further buoying consumer confidence, the government reversed its earlier proposal to hike the VAT rate from 15% to 15.5%, a move that would preserve disposable income at a critical moment for household consumption, he said. 'The market also appears to be correcting itself, balancing affordability with demand as consumers become more realistic about their purchase decisions,' said Lebo Gaoaketse, head of marketing and communication at WesBank. WesBank data shows an average deal size shrinking 8.6% year-on-year, indicating the stresses of affordability on new vehicle purchases and the continued trend to buy down into smaller, more affordable vehicles. 'The competitive price point of new Chinese entrants will also influence this shift as consumers seek alternative value in the market.' Toyota remained South Africa's favourite brand in April, with 10,363 units sold. Suzuki strengthened its No 2 position ahead of Volkswagen, with Hyundai remaining at No 4 ahead of Ford. Notable movers were GWM/Haval and Chery, which each jumped three places in April compared with March — GWM/Haval to sixth place and Chery to seventh — further underlining the strengthening presence of affordable Chinese brands in a price-sensitive market. Omoda & Jaecoo and Jetour were other Chinese brands in the top 15. 15 BEST SELLING BRANDS IN APRIL: Toyota — 10,363 Suzuki — 5,977 Volkswagen — 3,973 Hyundai — 3,007 Ford — 2,398 GWM — 1,943 Chery — 1,852 Isuzu — 1,383 Renault — 1,281 Mahindra — 1,278 Kia — 1,277 BMW group — 1,146 Omoda & Jaecoo — 865 Nissan — 794 Jetour — 573 30 BEST SELLING CARS IN APRIL: Toyota Hilux — 2,780 Suzuki Swift — 2,053 Ford Ranger — 1,728 Toyota Corolla Cross — 1,584 Hyundai Grand i10 -1,425 VW Polo Vivo — 1,366 Suzuki Fronx — 1,186 Chery Tiggo 4 Pro — 1,133 Isuzu D-Max — 1,108 Haval Jolion — 973 Toyota Starlet — 905 Toyota Starlet Cross — 834 Kia Sonet — 812 Suzuki Ertiga — 778 VW Polo — 768 Mahindra Scorpio Pik-Up — 654 Toyota Fortuner — 606 Omoda C5 — 588 Toyota Hi-Ace — 571 Toyota Urban Cruiser — 539 Mahindra XUV 3XO — 515 GWM P-Series — 497 Renault Kiger — 470 Nissan Magnite — 449 Toyota Rumion — 448 Toyota Vitz — 433 Chery Tiggo 7 Pro — 427 Suzuki Baleno — 420 Toyota Land Cruiser — 417 Hyundai Exter — 381
The Citizen
28-04-2025
- Automotive
- The Citizen
August Festival of Motoring promises thrills at Kyalami
The Festival of Motoring, a premier automotive event, will gather leading car brands, enthusiastic fans, and industry experts at the iconic Kyalami Grand Prix Circuit from August 29 to 31. This eighth edition, powered by WesBank, promises a stimulating showcase of automotive innovation, performance and excellence, embodying the spirit of Ubuntu – 'I am because we are.' Michael Dehn, managing director of Messe Frankfurt South Africa, the event organiser, highlights the festival's core: 'More than just a car show, the Festival of Motoring is about people, passion, and the unifying power of the automotive world. Together with WesBank, we aim to deliver an unforgettable and immersive motoring experience.' Lebo Gaoaketse, head of marketing and communication at WesBank, adds: 'We are proud to continue our partnership with Messe Frankfurt South Africa, sharing a vision to present Africa's definitive automotive event. The festival's success is driven by the collective effort of all involved, from exhibitors to attendees. We look forward to exceeding previous achievements and showcasing the best the automotive industry has to offer.' The impressive line-up of participating brands for 2025 includes VW, VW Commercial, Toyota, GAC, Suzuki, BAIC, GWM, Haval, Ora, Tank, Chery, Mahindra, Isuzu, LDV and Subaru. Over 100 automotive lifestyle exhibitors will also showcase accessories, services and mobility solutions. Attendees can enjoy complimentary hands-on experiences like the self-handling track to test driving skills and the 4×4 Adventure Zone for off-road exploration. For adrenaline seekers, the festival offers exclusive driving sessions featuring the BMW Motorsport Club Series, Simola Hill Climb activations and MasterDrive experiences, available for purchase from mid-May 2025 at special festival rates. A highlight this year is the debut of the Vilaca Racing Ultimate Car and Driver Challenge, a dynamic time attack competition spanning the three days. Motorsport enthusiasts will be thrilled by Formula One-type vehicle demonstration laps and two official rounds of the Sunbet ZX10 Masters Cup Superbikes, showcasing top riders pushing their limits on the track. Santam, a leading short-term insurer, joins as the sponsor of the Premium Suite and Adventure Zone. Nondumiso Mabece, head of brand and marketing at Santam, explains the synergy: 'Sponsoring the Festival of Motoring allows us to connect directly with vehicle owners, a key demographic for insurance. The Adventure Zone and Self-handling Track provide strategic platforms for interactive engagement, highlighting our insurance products and value-added services.' The Adventure Zone will feature activities like Subaru's obstacle course, a mini carnival for all ages (courtesy of Santam), and an upgraded premium hospitality suite. Judy Maharaj, show director of the Festival of Motoring, emphasises the event's significance: 'More than a car showcase, this festival celebrates car buying as a vital step towards a fulfilling life. We commend the exhibitors for their commitment to consumers, embodying the spirit of Ubuntu. The Festival of Motoring is where Africa's automotive passion thrives. Don't miss being part of this movement.' Join Africa's premier motoring celebration! Early bird tickets with discounts are available online until the end of April. Complimentary shuttle services will enhance the visitor experience. Source: QuickPic
