Car buyers advised to consider total cost of ownership

With the seemingly endless entry of new vehicle models, South African consumers have more choice than ever.

WesBank encourages prospective customers to have a full understanding of all the costs involved in car ownership, and not to base their decision on the purchase price alone.

It is important to take into account the overall cost of ownership.

WesBank has calculated the estimated total monthly expenses associated with owning and maintaining a top-selling mid-range hatchback in South Africa, showing how the total cost of ownership has changed over time.

Cost breakdown

For a mid-range hatchback with a retail price of around R294 000 including VAT, consumers can expect to pay an estimated monthly instalment of R5 554.80 – influenced by the interest rate linked to the finance contract, credit score and loan term.

Insurance

It is compulsory for a financed vehicle to be comprehensively insured.

Insurance premiums vary depending on the car and the driver. For the model in question, an expected monthly comprehensive premium is R1 827.24.

Fuel costs

The price of fuel remains one of the largest expenses in vehicle ownership. The average monthly fuel cost in this scenario is R3 902.50.

Ongoing maintenance

Routine vehicle maintenance helps ensure the safe and reliable operation of your vehicle. For the study vehicle, owners can expect to pay in the region of R475.75 per month, or R5 709 annually.

Total monthly mobility costs

Combining these costs, the total monthly cost for the vehicle in question comes to R11 760.29 – marginally higher than the average total cost of ownership in 2024 (R11 578.70 per month).

Historical data

Reviewing historical data, the increase in the total cost of vehicle ownership becomes apparent.

Due to price inflation, the estimated monthly instalment for the study model has jumped from R2 417.03 in 2012 to R5 554.80 in 2025, and insurance premiums and fuel costs have also skyrocketed.

“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,” said WesBank head of marketing and communication Lebo Gaoaketse.

Don’t have the ZO app? Download it to your Android or Apple device here:

HAVE YOUR SAY