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.

- By Neesa Moodley

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.