Johannesburg - South Africa’s "average cost of motoring" has increased by a worrying R940 in the past year, but the good news is that actual vehicle price inflation has slowed.
This is according to WesBank’s Mobility Calculator, a tool that the finance institution uses to track historic motoring costs.
The research includes all costs associated with vehicle ownership, including vehicle installments and fuel spend - which account for over 80 percent of motoring costs - as well as insurance and vehicle maintenance. Calculations are made using an unnamed ‘entry level’ sample vehicle that travels around 2500km a month, and with a monthly installment of R3383.
According to our calculations, that would get you a R200 000 car (such as a relatively well specced Polo Vivo or Ford Figo) if you're going for a standard six-year loan with a 10 percent deposit and no residual.
It found that overall motoring costs have increased by 14 percent in the last year alone, and 31 percent since 2013.
Fuel prices are the biggest culprit, having increased by over R2 a litre since earlier this year, but interest rates thankfully remain at historically low levels and new vehicle price inflation has also been unusually favourable.
The bank says that its average new vehicle finance deal was just 1.43 percent higher than the same time last year, at R307 455, while the average used deal was 6.9 percent higher at R216 309, although it can’t be ruled out that the former figure might be due to financially constrained consumers buying down.
“The past year has been a rollercoaster ride with drastic fuel price fluctuations making it difficult for consumers to keep track of monthly budgets,” says WesBank marketing head Ghana Msibi, “International oil prices and local exchange rates continue to play a direct role in the monthly budgets for motorists, in both fuel and vehicle prices.
“Although manufacturers are offering attractive marketing incentives to lure customers into dealerships, consumers still have to spend more on vehicles, fuel, insurance and maintenance than ever before,” Msibi concluded.