This is how much more you’re paying for a budget car than five years ago
WesBank reports a 48% hike in monthly costs for a car priced at R280,000
16 May 2023 - 19:09
by Staff Writer
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A R280,000 car such as the Kia Picanto X-Line now costs nearly R3,800 per month more to run than five years ago.
Picture: SUPPLIED
For a budget car priced at R280,000 it will cost you about R3,776 more per month to run it than five years ago.
WesBank has issued a table illustrating the steep hike in the total cost of car ownership from 2019 to May 2023 due to rising vehicle prices, fuel costs, interest rates, insurance and maintenance.
For the exercise, WesBank took a vehicle valued at R280,000 that travels about 2,500km per month and calculated the instalments, fuel, insurance and maintenance costs. It worked out that an owner today is paying R11,627 monthly for the vehicle, 48% higher than the R7,851 they paid in 2019.
Cars in this price range include the Suzuki Vitara Brezza, VW Polo Vivo and Kia Picanto X-Line.
It is also a significant hike from the R10,165 it cost to run the same car just six months ago, with the biggest increases in monthly repayments due to the ongoing interest rate hikes and insurance fees.
The table illustrates the total cost of a running a R280,000 vehicle over the past five years.
Picture: SUPPLIED
Vehicle instalments (46%) remain the largest portion of the monthly cost — a result of the spate of interest rate hikes over the past year. Fuel spend (35%) is second, followed by insurance (15%), while running costs per month account for the final 4% at R493.
The percentage breakdowns remain similar to those in 2019.
The figures are further evidence of the wide-reaching impact of both global and local influences on the total cost of vehicle ownership, such as the war in Ukraine and chip shortages affecting production, says the bank.
“Prospective vehicle owners should take a holistic view when planning a car purchase by right-sizing the spend to fit their budget to ensure they don’t overextend themselves,” says Lebogang Gaoaketse, head of marketing and communication at WesBank.
“This includes making allowances for increased costs down the line, such as another interest rate hike or higher fuel prices. The smartest move is to make provision for these rising costs over the duration of the finance contract.”
Consumers’ budgets are strained after two interest rate hikes this year, with a possible third increase expected at the end of May.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
FEATURE
This is how much more you’re paying for a budget car than five years ago
WesBank reports a 48% hike in monthly costs for a car priced at R280,000
For a budget car priced at R280,000 it will cost you about R3,776 more per month to run it than five years ago.
WesBank has issued a table illustrating the steep hike in the total cost of car ownership from 2019 to May 2023 due to rising vehicle prices, fuel costs, interest rates, insurance and maintenance.
For the exercise, WesBank took a vehicle valued at R280,000 that travels about 2,500km per month and calculated the instalments, fuel, insurance and maintenance costs. It worked out that an owner today is paying R11,627 monthly for the vehicle, 48% higher than the R7,851 they paid in 2019.
Cars in this price range include the Suzuki Vitara Brezza, VW Polo Vivo and Kia Picanto X-Line.
It is also a significant hike from the R10,165 it cost to run the same car just six months ago, with the biggest increases in monthly repayments due to the ongoing interest rate hikes and insurance fees.
Vehicle instalments (46%) remain the largest portion of the monthly cost — a result of the spate of interest rate hikes over the past year. Fuel spend (35%) is second, followed by insurance (15%), while running costs per month account for the final 4% at R493.
The percentage breakdowns remain similar to those in 2019.
The figures are further evidence of the wide-reaching impact of both global and local influences on the total cost of vehicle ownership, such as the war in Ukraine and chip shortages affecting production, says the bank.
“Prospective vehicle owners should take a holistic view when planning a car purchase by right-sizing the spend to fit their budget to ensure they don’t overextend themselves,” says Lebogang Gaoaketse, head of marketing and communication at WesBank.
“This includes making allowances for increased costs down the line, such as another interest rate hike or higher fuel prices. The smartest move is to make provision for these rising costs over the duration of the finance contract.”
Consumers’ budgets are strained after two interest rate hikes this year, with a possible third increase expected at the end of May.
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