This is when you should sell your car in South Africa

Car ownership in South Africa has become more than a luxury, with many relying on cars over somewhat unreliable public transport daily, making it difficult to decide when the best time to sell is.

That said, according to WesBank, deciding when to sell an ageing or problematic car must be done based on more than simply a gut feeling.

WesBank Head of Marketing and Communication, Lebogang Gaoaketse, said that once your car goes in for a service and the workshop calls to say there are more errors than you budgeted for, you may start to consider selling.

If this happens a few times a year and the second and third invoices arrive, the consideration becomes more concrete.

According to the finance house, keeping a vehicle on the road has been getting more expensive, due to incremental increases, rather than one big number.

However, motorists can use these increases to determine whether their car is worth keeping, or has gotten too expensive for their budget.

“A ten-year-old vehicle that has been serviced consistently and covers modest distances can be considerably cheaper to run than a five-year-old one that spends every second month in a workshop,” explained WesBank.

The useful question is what the vehicle costs you each month once all your vehicle’s expenses are added.

“Owners tend to compare a repair bill against a monthly instalment, and that comparison is incomplete,” said Gaoaketse.

“What a vehicle costs over time includes servicing, tyres, fuel, insurance, licensing and the repairs you did not plan for.”

“Once you add all of it up and divide by twelve, you have a number you can actually make a decision with.”

He shared some practical indicators worth considering when making a decision, including:

• Repair costs over twelve months amount to a meaningful share of the vehicle’s trade or resale value.
• The same system keeps failing despite being repaired.
• Safety-critical items are due, such as tyres, brakes, suspension or a timing component.
• Fuel consumption has drifted upward as the engine has aged.
• Your monthly running cost is now sitting close to what a replacement instalment would be.

If these indicators are present, it may be time to consider selling your car.

Prioritise affordability when working out your budget

Before selling their current car, owners need to calculate their monthly running cost, including services, tyres, brakes, batteries, unscheduled repairs, insurance premiums, licence renewal and fuel.

A replacement vehicle’s costs must be measured against this figure, although a newer vehicle carries an instalment, lower repair exposure, a warranty or service plan in many cases, and generally better fuel consumption.

So, for that reason, the comparison only works when both sides are counted the same way and carry equal weight.

“Replacing a vehicle should be a planned financial decision, and affordability is the starting point,” said Gaoaketse.

“Work out what you can comfortably commit to each month, factor in insurance and running costs, and understand what your current vehicle is worth as a deposit or trade-in.

He added that stretching the term to force the instalment down makes the vehicle more expensive over its life.

WesBank also advised establishing the full monthly commitment before shopping by using a repayment calculator to test different deposit and term combinations and compare finance options.

Luckily for car owners, where their existing vehicle still holds value, this can reduce the amount they need to finance.

“The right answer differs from one household to the next, and both answers are valid,” says Gaoaketse.

“What matters is that the decision is based on your own numbers. Understand what you are spending now, understand what a replacement would commit you to, and then choose the option that moves your household forward.”