The True Cost of Owning a Car in South Africa
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The monthly instalment is just the beginning. Research by WesBank and the AA shows the average car in South Africa costs over R11,000 per month when you add insurance, fuel, maintenance, tyres, licensing, and depreciation. For many households, the car is the second-largest expense after housing.
The Hidden Costs
Insurance: R500–R1,500/month depending on vehicle, driver profile, and cover level. Fuel: R1,500–R4,000/month at 15,000km/year. Maintenance and tyres: R500–R1,500/month averaged over the ownership period.Licence, e-tolls, parking: R200–R500/month. Depreciation:a new car loses 20–30% of its value in the first year.
The 20% Rule
Financial advisors recommend total car costs (all-in) should not exceed 20% of gross monthly income. If you earn R30,000/month, that is R6,000 for everything — instalment, insurance, fuel, and maintenance combined. Many South Africans exceed this significantly.
Cost Per Kilometre
Divide your total annual cost by km driven. The average ranges from R3 to R6/km. This metric helps compare different vehicles and decide when ride-sharing or public transport is more economical.