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You’ve found a car you like. The dealership advertises an instalment of R3,200 a month, and the amount looks manageable.
But have you calculated what it will cost to drive that car every day?
Fuel prices can change from month to month. Insurance, servicing and unexpected repairs also take money out of your pocket. For South Africans already managing a tight household budget, these costs deserve just as much attention as the instalment.
If you have a low credit score, understanding your actual monthly affordability is particularly important. A lender needs to assess whether you can manage a new credit agreement alongside your existing financial commitments.
What does it really cost to own a car?
Consider someone living in Johannesburg who earns R18,000 a month after deductions and wants to finance a used hatchback.
Their estimated monthly expenses might look like this:
| Expense | Monthly cost |
|---|---|
| Vehicle instalment | R3,200 |
| Comprehensive insurance | R850 |
| Petrol | R1,500 |
| Maintenance savings | R450 |
| Tracking subscription | R150 |
| Licence renewal savings | R100 |
| Total | R6,250 |
These are illustrative figures. Actual expenses depend on the vehicle, distance travelled, fuel consumption, insurance profile and contract conditions.
That R3,200 instalment has now become a R6,250 monthly commitment.
For someone earning R18,000 after deductions, that represents approximately 35% of their take-home pay.
And we haven’t included parking, toll fees or unexpected repairs.
How to calculate your fuel budget
Rather than guessing how many times you’ll fill up, calculate your likely fuel consumption.
Let’s say you travel 1,200 kilometres every month in a vehicle averaging 6 litres per 100 kilometres.
Your calculation is:
1,200 km ÷ 100 × 6 = 72 litres
If petrol costs R29.30 per litre for this example:
72 × R29.30 = R 2 109.60 per month.
The R29.30 figure is only an illustration. Check the latest official fuel price for your area before calculating.
You can find current regulated fuel prices through the Department of Mineral and Petroleum Resources.
What if your credit score is low?
Under South Africa’s National Credit Act, credit providers must assess affordability before granting credit.
They may consider your income, existing debt repayments, necessary living expenses and credit history.
A poor credit record does not automatically mean every application will fail. However, having enough disposable income does not guarantee approval either.
Before applying:
- Review your latest three months of income and expenses.
- Calculate the full cost of keeping the vehicle on the road.
- Check your credit report for incorrect information.
- Avoid taking on new debt simply to cover a deposit.
- Keep some money available for emergencies.
There is no universal rule that your vehicle expenses must stay below a particular percentage of your salary. The right amount depends on your complete household budget.
A cheaper car can make more sense
A used VW Polo Vivo, Renault Kwid or another economical hatchback might meet your transport needs without putting excessive pressure on your income.
Compare fuel consumption, service costs, parts availability and insurance quotations before choosing.
A lower purchase price does not always mean lower running costs, particularly when an older vehicle needs frequent repairs.
Make the numbers work before visiting a dealership
Buying a vehicle should make getting to work, transporting your family or running your business easier, not create another financial problem.
Use the DriveAccess Hub directory to explore South African dealerships and vehicle service providers. Contact businesses directly to confirm their available vehicles, finance arrangements and requirements.
Take your calculated monthly budget with you. It is a better starting point than shopping according to the advertised instalment alone.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or professional advice. The information provided is based on general research and should not be relied upon as a substitute for consulting with a qualified sales agent or finance professional from a reputable car dealership. DriveAccess Hub is not affiliated with any dealership listed on its directory. Readers are strongly advised to seek independent advice before making any vehicle purchase, lease, or financing decision.