Why does the cost of owning a car increase?

Motorists are facing increasing car ownership costs, but why should this be so? Learn more about this scenario as you read further.¹

According to WesBank, the average motorist spent just over R9,356.00 to maintain their car in 2022. This includes maintenance costs, car insurance, fuel, and finance instalments, which is 21.27% more than what motorists spent in 2021.  WesBank sites the increase on spare parts, tyres, fuel, and interest rates. ¹

With the pandemic over and most motorists commuting to work again, the challenge facing them now is managing these rising costs within a limited budget. ¹

In their estimation, WesBank assumed buying an average car in South Africa would cost R250,000 and travelling would be 2,500 km per month. Fuel and car instalments comprised 81% of a motorist’s monthly expenditure. Car insurance added an additional R1,409 or 14% to the monthly budget, while monthly running costs made up the last 5% or R493. ¹

Of the 81% mentioned above, 39% is spent on fuel, while vehicle instalments cost 42%. The average November 2022 fuel cost of R3,950 is almost the same as the average instalment value of R4,313. ¹

For example, in 2018, fuel costs comprised 36% of a motorist’s budget, while car instalments were 44%. This shows what a profound effect the huge fuel price increases had in 2022. Furthermore, WesBank predicted that these increases would continue in 2023, blaming them mainly on rising vehicle prices, among other things. ¹

Motorists should take great care before buying their next car to avoid overspending on their budget. They also need to factor in any possible future increases in spare parts, fuel, and interest rates into their budgets. ¹

The article aims to explain why the cost of owning a car is increasing. ¹

Contact us at Prime South Africa and enjoy our world-class client service while we inform you about our affordable car insurance. It consists of comprehensive and customised car insurance with fixed premiums* and reducing excess*. Our comprehensive and customised car insurance plans cover cars up to 15 years old, but our third-party PLUS car insurance has no age restriction. Ts and Cs apply.