How much does it cost to own an affordable car in South Africa?

A car is considered a necessity rather than a luxury, especially with Mzansi's limited public transport infrastructure. However, many prospective car owners underestimate the true cost of ownership beyond the initial purchase price and find themselves in financial trouble as a result.

By Ané Albertse

Published: 14 April 2025, 12:11

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If you're considering buying a car in the R250,000 range (or any car, for that matter!), you should be prepared for various expenses accumulated over time. Let's break down what it really costs to own an affordable car in South Africa in 2025.

A red Starlet Cross driving down the road.

Monthly car loan payments

The most significant expense for most car owners is the monthly instalment. For a car priced at R250,000, your repayment amount will vary based on several factors:

Deposit amount: A 10% deposit (R25,000) would reduce your loan to R225,000
Interest rate: Currently averaging between 11% and 14% for most buyers
Loan term: Typically between 60 and 72 months
Balloon payment option: While this reduces monthly payments, it requires a lump sum at the end of your term

Using AutoTrader's Car Finance Calculator, a R250,000 car financed over 60 months at 12% interest with a 10% deposit would result in monthly payments of approximately R5,000,00.

Pro Tip: If you're considering buying a car without a deposit, remember that this will increase your monthly instalment and overall interest paid. Similarly, opting for a balloon payment might ease monthly pressure but could create financial strain when the term ends. We don't recommend this potential pitfall.

Additional monthly ownership costs

Beyond your car loan, several recurring expenses make an impact on the total cost of ownership:

1. Fuel costs

With South Africa's fuel prices constantly fluctuating, this represents a major expense. For an affordable car with average fuel efficiency, you're looking at:

Average consumption: 7 litres per 100km
Monthly distance: Approximately 1,500km
Current fuel price: R21.51 per litre (at the reef, as of April 2025)

This equates to roughly R2,300 per month on fuel. Keep an eye on fuel price changes and consider the fuel efficiency of different models before purchasing. Knowing how to work out a car's fuel consumption is key! (Here's how!)

2. Insurance

Comprehensive car insurance is essential for protecting your investment. The monthly premium depends on various factors:

Vehicle Value
Your age and driving history
Security features
Where you live and park your car

For an affordable car, expect to pay between R700 and R1,200 monthly for comprehensive insurance. While buying a car without insurance may be tempting, it exposes you to significant financial risk.

A young woman sitting in a blue VW beetle.

3. Annual license fees

Vehicle license renewal fees in South Africa vary by province and vehicle weight. For a standard affordable car, budget around R500-R700 annually, or approximately R60 per month when calculated monthly.

4. Maintenance and service costs

Even new cars require regular maintenance. Consider:

Service costs: Approximately R3,000-R5,000 per service (usually every 15,000km or annually)
Tyre replacements: Around R4,000-R6,000 per set (typically every 40,000-50,000km)
Minor repairs and wear-and-tear items

Maintenance should be allocated between R500 and R1,000 monthly. Understanding the difference between maintenance and service can help you plan effectively.

5. Toll fees

If your regular route includes toll roads, these costs can add up. E-toll users in Gauteng might spend R200-R300 monthly, while occasional toll road users should budget according to their specific routes.

6. Car cleaning

Regular cleaning helps maintain your car's appearance and value. Budget around R150-R300 monthly for car washes, or less if you clean it yourself.

Unforeseen expenses

Always maintain an emergency fund for unexpected car expenses such as:

Accident damage not covered by insurance
Out-of-warranty repairs
Windscreen replacements
Excess payments on insurance claims

Total monthly cost of ownership

When all expenses are tallied, owning an affordable car in South Africa typically costs between R7,000 and R9,000 per month:

Car loan instalment: ±R5,000
Fuel: ±R2,259
Insurance: ±R950
License fees: ±R60
Maintenance: ±R750
Toll fees: ±R200
Cleaning: ±R150

Total monthly cost: ±R10 000

Alternative Financing Options

For homeowners, using a portion of your home loan to finance a car can significantly reduce interest rates. Speak to your bank about this option, but remember that it extends the repayment period and uses your home as collateral. This method has a variety of pros and cons, which you can learn more about in this video.

Check out these articles if you're looking for more affordable options.

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Best new cars for students in 2025

Top 5 used compact SUVs under R200k for students

Best used SUVs for matrics and students

What used cars can I buy for R120 000 in South Africa?

Reality check

Owning an affordable car in South Africa represents a significant financial commitment that extends well beyond the purchase price. By understanding and budgeting for the true cost of ownership—which can exceed R10k monthly for a R250,000 car—you can make informed decisions that align with your financial situation.

Before signing any purchase agreement, carefully calculate all associated costs and ensure they fit comfortably within your budget. The freedom and convenience of car ownership should enhance your life, not lead to sleepless nights.