South Africa is widely regarded as a car-loving nation, often passionately loyal to certain brands and models. However, with the seemingly endless entry of new models, consumers have more choice than ever.
As variety abounds and more buyers visit showrooms in search for their next set of wheels, WesBank encourages prospective customers to have a full understanding of all the costs involved in car ownership, and not to base their decision on just the purchase price.
“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. “Which means when deciding on buying a car, new or used, most buyers base their decision primarily on the vehicle purchase price. But it’s important to look beyond just the purchase price, and consider the total cost of ownership, which is influenced by several other factors.”
To illustrate this, WesBank has calculated 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.
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. This instalment is of course influenced by the interest rate linked to the vehicle finance contract, which in turn is influenced by factors such as credit score and loan term.
Insurance
As stipulated in all vehicle finance contracts, it is compulsory for a financed vehicle to be comprehensively insured. Even in instances where the vehicle is not financed, insurance protects the owner against the loss of their vehicle 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 monthly comprehensive insurance premium of approximately R1 827.24 can be expected.
Fuel costs
Despite recent improvements, from a consumer perspective, in the price of fuel, this remains one of the largest ongoing expenses in vehicle ownership. To 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 is R3 902.50.
Ongoing maintenance
Routine vehicle maintenance is important to 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, 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 best-selling hatchbacks in South Africa comes to roughly R 11 760,29 – 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, due to 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, while fuel costs have ballooned from R1 856.75 to around 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.
To aide car buyers in determining their monthly instalments before buying a car, WesBank provides access to its free online vehicle finance calculator, which allows buyers to calculate their estimated monthly repayment and apply for finance online.
