Buyers should consider the total cost of ownership amid rising vehicle ownership costs
South Africa’s car culture is alive and well, and with more new models hitting the market, local buyers have more choice than ever. While some remain loyal to their favourite brands, many are exploring what’s new, and as a nation that loves its cars, it’s no surprise that more and more people are heading to dealerships in search of their next set of wheels. That said, WesBank encourages prospective buyers to fully understand all the costs involved in vehicle ownership and not base their decision on just the purchase price.
While passenger car sales in SA have shown signs of recovery, the market remains highly price-sensitive. For many buyers, whether shopping new or used, the sticker price is often the biggest deciding factor. Focusing only on the upfront cost can be misleading; it’s just one part of the bigger picture. The real financial picture lies in the total cost of ownership, which takes into account things like maintenance, fuel consumption, insurance, and resale value. To provide a clear understanding of this, WesBank has calculated the estimated total monthly expenses associated with owning and maintaining one of the top-selling hatchbacks locally. The results also show how the total cost of ownership has changed over time.
Cost breakdown
Take, for example, a mid-range hatchback vehicle that retails for around R294,000, including VAT, the expected monthly instalment is R5,554.80. Bear in mind that this is influenced by the interest rate linked to the vehicle finance contract, which is then influenced by factors such as credit score and length of the loan term.
Insurance
Then there’s insurance, which, according to vehicle finance contracts, is compulsory for a financed car to have. Not that alone, even for cars bought cash, insurance is a necessity as it protects the owner against the loss of the car that might result from an accident or theft. It’s worth noting that insurance premiums differ depending on several factors such as the make and model of the car, the driver’s history and location. For this model, you can expect to pay around R1,827.24 per month for comprehensive car insurance.
Fuel costs
Fuel remains one of the largest ongoing expenses in vehicle ownership despite recent improvements in the price of fuel. In order to estimate the monthly fuel costs, you have to determine the car’s fuel consumption rate and the distance you travel each month. For most cases an average monthly fuel cost of about R4,000 is a safe estimate.
Ongoing maintenance
Taking care of your car regularly helps keep it safe and running well. For the car in this study, owners can expect to spend around R475.75 per month or about R5,709 per year on basic running costs like routine maintenance and general care.
Total monthly mobility costs
When you add up the monthly instalment, fuel, insurance, and upkeep, the total cost to own one of SA’s top-selling hatchbacks comes to about R11,760.29 per month. That’s just slightly more than the 2024 average of R11,578.70 per month.
Historical data
Looking at how costs have changed over time shows just how much more expensive it’s become to own a car. For example, the monthly instalment on the study model has more than doubled from R2,417.03 in 2012 to R5,554.80 in 2025. Insurance has gone up from R802.66 to R1,827.24, and fuel costs have nearly doubled from R1,856.75 to about R3,902.50 per month. That’s why it’s so important to be honest with yourself about what you can truly afford before committing to a long-term car loan. The more you understand the full cost of ownership, the better your overall experience will be.
To help buyers plan, WesBank offers a free online finance calculator that lets you work out your estimated monthly payments and apply for finance easily.
