Owning a car isn’t just about the joy of hitting the open road, although that’s clearly a big part of it.
The other side of car ownership is everything you need to pay for. Sure, fuel and maintenance are the most obvious costs that spring to mind, but there’s a lot more that goes out of your wallet in order to keep your car on the road.
If you don’t want to any ‘hidden’ expenses to catch you off guard, then keep reading. We’re going to pull the curtain back on the real costs of owning a car in South Africa and how the king’s car insurance can help lighten your financial load.
The basics: Fuel and maintenance
Eish, the cost of fuel is just remarkable. Remarkably painful, that is. We’re tackling this cost first, because it is easily the most regular and visible expense, especially with South Africa’s fluctuating petrol prices. As of October 2023, petrol prices in South Africa hovered at around R23 per litre. At that price, if you’re driving a typical sedan with a tank capacity of 45 litres, you’d be paying around R1,035 for a full tank.
It kind of puts your daily commute into a whole new light.
Maintenance costs also creep up on you. So, regular servicing could cost anywhere from R1,500 and R4,000 per year for a mid-range car… And that’s just the start. You’ll also need to replace the tyres (around R800 – R2,500 per tyre depending on the model). Then there are other wear-and-tear items that you might have to pay attention to outside of your regular servicing schedule, like brakes, filters, and fluids.
Now that we’ve given you an idea of the usual costs… Let’s talk about those additional hidden costs, which is usually where car ownership can get a bit more complex (and expensive).
Financing costs and interest rates
Have you financed your car through a bank loan? Then the interest rates and repayment terms are another factor that contribute to the true cost of car ownership. Look, depending on the loan agreement and your credit profile, the interest rate charged on your loan can vary from 7% – 15%. This potentially adds 10s of 1000s of rands to the overall cost of your car.
We love examples, so for a R250,000 car financed over 5 years at an interest rate of 10%, you could end up paying an additional R70,000 or more.
You’re gonna want to shop around competitive financing options and, if possible, make a larger upfront payment to reduce the overall loan amount.
Road tax and licensing
In South Africa, car ownership comes with certain legal responsibilities, including annual vehicle licensing fees. We can’t tell you for sure what you’ll pay, because the cost of licensing your car depends on its weight and the province in which you’re based. Thankfully, it’s not that hard to find out. You can just Google around to find the answer or save some time and just use this link.
It’s so easy to overlook this annual fee, but it’s essential to plan and budget for it. Failing to renew your car licence on time can result in penalties, so when you do finally get around to it, you’ll end up paying loads more than you should.
Tolls and parking fees
Toll fees are another sneaky cost. You just don’t think about it, but if you’re regularly driving along South Africa’s major highways, it’s worth factoring this cost into your budget. If you’re hardly ever passing through tolls, then you can skip this cost, but IYKYK. And those who K, K they could be paying several 100 rand per month in toll fees.
Parking is another cost that’s easy to forget. Whether you’re paying for parking at work, at shopping centres, or at events, these costs can add up, especially over time.
Car insurance: A necessary investment
This isn’t really a hidden cost, per say, but it’s not 1 that many people tend to include in their car ownership budget. In South Africa having car insurance isn’t mandatory, which means that some drivers don’t take out any kind of cover… That sucks, because it puts everyone at risk. Make no mistake, car insurance is a crucial part of responsible car ownership, and having cover means that you’re protected from paying for damages and theft out of your own pocket.
The monthly premium that you’ll pay depends on a few things, like your car’s make and model, your driving history, where you live, and the level of cover you choose. You might not have much choice when it comes to the level of cover that you need to get, because financed cars usually have to be comprehensively insured. But if you do have a choice and it makes sense, then there are cheaper policies out there.
Like our royal third party only car insurance.
Our motto is, some cover is better than no cover, so if you’re strapped for cash but want to make sure that you won’t be blindsided by extremely high costs if your car hits another car, then talk to us.
The royal bottom line
Owning a car is a major financial commitment, and as we’ve outlined, the costs go beyond just fuel and maintenance. It’s really important that you whip out the old calculator to add all those costs together. By understanding and prepping your budget (and taking advantage of our super cheap insurance solutions) you can make smart decisions that will keep your overall car ownership expenses in check.
Want a commitment-free quote on car insurance? You’ve come to the right place. Click here or you can WhatsApp us on 086 50 50 50
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Psst… This blog provides general info only, and doesn’t count as financial or product advice from King Price or our legal and compliance experts. Remember, all our premiums are risk-profile-dependent, and T’s and C’s apply. Our most up-to-date KPPD (policy wording) can always be found here.
Our website T’s and C’s can be found here.
