The real cost of owning a car in South Africa in 2026
· The South African
Buying a car can feel relatively straightforward when you look at the monthly instalment.
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But the instalment is only one part of the bill.
Once fuel, insurance, servicing, tyres, licensing and unexpected repairs are added, the cost of keeping a car on the road can be substantially higher than many motorists realise.
And with another sharp fuel price increase taking effect in September, those costs are about to become even more noticeable.
Fuel is one of the biggest expenses
Fuel is usually the most obvious running cost, and South African motorists are facing another increase from 2 September 2026.
Both grades of petrol are increasing by R1.34 per litre, while diesel is going up by between R2.94 and R3.15 per litre.
For example, if you drive a petrol car with a 50-litre tank, filling it once a month will cost roughly R67 more after the September increase.
But most motorists fill up more than once a month.
Someone using 100 litres of petrol a month would then pay about R134 more per month as a result of the latest increase alone.
Over a year, that’s more than R1 600 in additional fuel costs, assuming the price remains unchanged.
Of course, actual fuel consumption depends on the vehicle, driving habits and distance travelled.
Insurance can add more than R1 000 a month
Comprehensive insurance is another major cost of owning a car.
There is no single price because insurers consider factors such as the driver’s age, location, claims history, vehicle and risk profile.
However, estimates from South African insurance providers put the average comprehensive premium at roughly R800 to R1 400 per month in 2026.
Some popular models can fall within that range, although individual quotes can be considerably higher or lower.
A driver paying R1 200 a month for insurance is therefore spending R14 400 a year before putting a single kilometre on the car.
Servicing and maintenance
Cars also need regular servicing, even when nothing appears to be wrong. Oil, filters, brake components, fluids and other consumables all need to be replaced over time.
Then there are the less predictable costs of owning a car.
A battery can fail. A tyre can be damaged. Brakes can wear out. A warning light can suddenly appear on the dashboard at the worst possible moment, and usually just after payday, because cars have impeccable timing.
These expenses are difficult to predict, which is why motorists should ideally put money aside every month for maintenance rather than treating each repair as an emergency.
Tyres are another expense that is easy to forget when calculating affordability.
The cost varies considerably depending on the vehicle and tyre size, but replacing all four tyres can easily run into several thousand rand.
Premium SUVs and larger vehicles can cost considerably more.
And waiting until tyres are completely worn isn’t a sensible way to save money. Poor tyres can affect braking, handling and safety, particularly in wet conditions.
Your licence also needs renewing
Every vehicle owner has to pay an annual motor vehicle licence fee.
The amount varies according to the province and the vehicle’s weight. For example, current fee schedules show that annual licensing costs differ substantially between provinces and vehicle categories.
It isn’t usually the biggest cost associated with owning a car, but it is another expense that needs to be included in the annual budget.
The government also warns motorists to renew their vehicle licences on time, with penalties and arrears payable when a licence expires.
Don’t forget tolls and parking
For many South Africans, particularly those who commute long distances, tolls and parking can add hundreds or even thousands of rand to the monthly cost of driving.
Someone commuting into a city centre every day may also have to pay for parking, while motorists travelling regularly between cities can rack up significant toll bills.
These costs can be easy to overlook because they aren’t part of the vehicle itself.
But they are still costs of using and owning a car.
Then there’s depreciation
One of the biggest costs of car ownership isn’t something you actually pay each month. It’s depreciation.
The moment a new car leaves the dealership, its value begins to fall, and most vehicles continue losing value as they get older and accumulate kilometres.
This matters because depreciation represents money you lose when eventually selling or trading in the vehicle.
It also means that a car with a seemingly affordable instalment isn’t necessarily cheap to own.
So what does a car really cost?
Consider a hypothetical driver with:
- R5 000 monthly instalment
- R1 200 insurance
- R1 500 fuel
- R800 maintenance/tyre allowance
- R100 licensing allowance
- R500 tolls and parking
That comes to R9 100 per month, or R109 200 per year.
And that’s before unexpected repairs, depreciation or any other costs.
The figures will obviously vary dramatically from driver to driver, but the example illustrates why looking only at the finance instalment can give a misleading picture of affordability.
Financial experts often recommend considering the total cost of ownership, rather than simply asking whether you can afford the monthly instalment.
One South African car-buying guide recommends keeping total monthly vehicle costs, including the instalment, fuel, insurance and maintenance, within roughly 16% to 20% of take-home pay.
That doesn’t mean every motorist has to follow exactly that formula, but it highlights an important point.
A car that costs R5 000 a month to finance doesn’t really cost R5 000 a month.
For many motorists, the true figure could be almost twice that once all the other costs are included.
And with fuel prices that continue to rise, South Africans considering buying a car should make sure they calculate the full cost of keeping it on the road, rather than simply asking whether they can afford the instalment.