The Hidden Truth About Car Ownership in South Africa

Beyond the monthly payment: uncovering the hidden expenses that catch car buyers off guard.

Imagine this: You Walk into a dealership, fall in love with a sleek hatchback priced at R294 000, and think, “The monthly payment is just R5 500, I can handle that.” Six months later, you’re wondering where all your money went.

That’s the reality for many car buyers in South Africa who neglect to consider the full cost of car ownership before taking the plunge.

Young professional taking a plunge a the cost of his new wheels

The Shocking Mathematics of Car Ownership

Here’s what nobody tells you at the dealership: your R294 000 hatchback will likely cost you in the region of R11 760 per month. Not R5 500. Not R6 000. Nearly R12 000.

This isn’t speculation or worst-case scenario planning. These are the cold, hard numbers that

WesBank calculated after analyzing one of South Africa’s most popular hatchback models; the kind sitting in thousands of driveways across the country right now.

The breakdown is sobering. Beyond your monthly repayment of R5 500, you’ll face insurance costs of about R1 827, fuel expenses of R3 903 and maintenance bills averaging R475 each month, bringing your total monthly reality to R11 760.

For most South African households, this represents between 30-50% of their monthly income. Money that could have gone toward building an emergency fund, saving for their children’s education, or actually enjoying life.

Why Everyone Gets This Wrong

“South Africans are passionate about their cars, but we’re also price-sensitive,” explains Lebo Gaoaketse, WesBank Head of Marketing. “Most people focus entirely on the purchase price and monthly payment, then get blindsided by everything else.”

It’s a trap that’s easy to fall into. Dealerships advertise the purchase price in bold letters. Banks focus on monthly installments. But most people don’t consider the full picture until it’s too late.

The problem isn’t just ignorance; it’s that these “hidden” costs feel optional or distant when you’re caught up in new-car excitement. Fuel seems manageable when tanks are cheap at the moment. Insurance feels like a formality. Maintenance seems like a future problem.

Until suddenly, it’s not.

The Four Pillars of Car Ownership Costs

1. The Monthly Payment: R5 555 – This is the only number most people research thoroughly. It varies based on your credit score, deposit amount, and loan term, but it’s actually the most predictable expense you’ll have.

2. Insurance: R1 827 Monthly – This isn’t negotiable; it’s legally required for financed vehicles. Your premium depends on your driving record, where you live, and what you drive. Live in a high-crime area? Drive a popular theft target? Expect to pay more.

3. Fuel: R3 903 Monthly – The biggest ongoing surprise for most car owners. This calculation assumes average South African driving patterns, but your reality depends on your daily commute, weekend adventures, and how heavy your right foot is.

4. Maintenance: R476 Monthly – Services, oil changes, tire rotations, brake pads; the unglamorous stuff that keeps your investment running. Skip this to save money, and you’ll pay triple later when your engine seizes or transmission fails.

How We Got Here: The Alarming Historical Trend

These numbers weren’t always this scary. In 2012, the total monthly cost of owning the same category of vehicle was roughly R6 032. Today, it’s nearly doubled to R11 760.

Every single component has skyrocketed. Monthly payments jumped from R2 417 to R5 555, while insurance nearly tripled from R803 to R1 827. Fuel costs more than doubled from R1 857 to R3 903.

Meanwhile, most South African salaries haven’t kept pace.

The Real-World Impact

Let’s put this in perspective. If you earn R25 000 monthly (above the South African average), spending R11 760 on transport means nearly half your income disappears before you’ve paid rent, bought groceries, or saved a single rand.

Even with a R35,000 monthly income, you’re dedicating one-third of your earnings to getting around. Financial experts typically recommend spending no more than 15-20% of your income on transportation.

This explains why so many South Africans feel financially stretched despite having decent jobs. It’s not just the cost of living; it’s the cost of moving through life.

Making Smarter Choices

The goal isn’t to scare you away from car ownership; for most South Africans, a reliable vehicle remains essential for work, family, and basic quality of life. The goal is making informed decisions.

Before You Buy:

Calculate whether you can comfortably afford the full monthly cost without stress
Consider certified pre-owned vehicles that might cost 30-40% less across all categories
Factor in your actual driving patterns – long commuters need fuel efficiency, city drivers need reliability
Shop around for insurance quotes before falling in love with any specific model

Reduce Long-Term Costs:

Choose models known for reliability and low maintenance costs
Consider fuel-efficient options if you drive frequently
Build maintenance costs into your monthly budget from day one
Use financing calculators to model different scenarios before visiting showrooms

Not sure what you can really afford?
Use the WesBank Calculator to see what your monthly payment and total cost might look like; before you commit.