The expenses South Africans are cutting to keep their cars

Motorists in South Africa are increasingly forced to cut costs to keep their cars on the road, or even buy a new one, and have enough money left in their budget for other expenses.

September’s petrol and diesel price increases added to this pressure and serve as a reminder that an affordable car instalment can quickly become an unaffordable monthly expense.

Petrol prices rose R1.34 per litre at the start of the month, adding R67 to a 50-litre refuel, meaning someone filling up four times a month is paying another R268 before setting off.

ChangeCars founder and CEO, Mike Pashut, explained that once insurance, maintenance and licensing are included, a vehicle that fits your finance application may leave too little money for everything else.

“Work out what the car will cost to keep on the road before deciding what you can spend buying it. Your budget needs room for an expensive month,” said Pashut.

He advised starting with your driving, as September inland petrol 95 prices mean driving 1,500km in a car using 7.0l/100km costs about R2,827. At 9.0l/100km, the same distance costs about R3,634.

“That R808 difference should be part of your buying decision. Treat advertised consumption as a comparison tool and investigate realistic consumption for your commute,” he added.

Pashut’s advice is to hold off on signing an agreement before getting an insurance quote for the exact model, including excesses, tracking requirements and cover for your intended use.

Other expenses to research include the price of replacement tyres and the next major service, arranging an independent inspection and verifying a used car’s service history.

That is because a roadworthy certificate does not detail everything about a car’s mechanical condition or future repair needs.

“A discount can disappear quickly if the car immediately needs tyres, overdue servicing or repairs. Ask what work is due next, and get the answer in writing,” advised Pashut.

Cost-cutting measures that make owning a car more affordable

Besides assessing the state of the vehicle you’re looking to buy, Pashut noted that financing agreements deserve the same scrutiny.

“Compare the deposit, interest rate, repayment period, fees, total repayable and any final balloon payment,” he explains.

“A lower instalment achieved by extending the term or leaving a large balance for later can postpone the affordability problem.”

Paying a bigger deposit lowers monthly instalments and helps household budgets stretch further, making a vehicle more affordable month-to-month, while a balloon payment does the same thing, but requires more discipline.

It is best for someone replacing their current vehicle to request its settlement figure before assuming the trade will clear the outstanding debt.

On top of these calculations, motorists need to look at insurance costs and evaluate how much cover they need, since paying the Road Accident Fund (RAF) levy does not insure an individual’s car.

Comprehensive insurance is the most expensive, and for good reason, as it covers motorists in the event of a range of insured events, while switching to third-party insurance may help with affordability, depending on your needs.

Another way motorists in South Africa can cut ownership costs is by deferring unnecessary maintenance and prioritising critical repairs instead.

“When money is tight, ask a qualified workshop to separate urgent safety work from items that can wait,” advised Pashut.

“Do not stretch worn tyres or ignore a braking problem to make the monthly figures work.”

Finally, he advised combining trips, driving smoothly and maintaining the manufacturer’s recommended tyre pressures for day-to-day savings.

“Before travel, check tyres, lights, wipers and brakes, secure every passenger properly and arrange a sober driver,” said Pashut.

“Protecting the household budget includes protecting the people travelling with you.”