When combining the monthly instalment, fuel, insurance and running costs, the total price tag to own and run one of the best-selling new hatchbacks in South Africa comes to about R11 760.29 a month, says asset financier WesBank.

This is marginally higher than the average total cost of ownership in 2024, which came in at R11 578.70 a month.

When reviewing historical data, however, the sharp increase in the total cost of vehicle ownership over the last few years becomes evident.

Owing to vehicle price inflation, the estimated monthly instalment for the study model has jumped from R2 417.03 in 2012, to R5 554.80 in 2025.

Insurance premiums have increased from R802.66 to R1 827.24 over the same period, while fuel costs have ballooned from R1 856.75 to around R3 902.50 a month.

“Viewing the cost of vehicle ownership from this perspective is important, and underscores the need to objectively and honestly evaluate one’s affordability level before signing a long-term vehicle finance contract,” warns WesBank marketing and communication head Lebo Gaoaketse.

He encourages prospective customers to have a full understanding of all the costs involved in car ownership, and to not simply base their decision on the purchase price alone.

WesBank’s case study focused on a mid-range hatchback with a retail price of R294 000, including VAT.

Within this scenario, consumers can expect to pay an estimated monthly instalment of R5 554.80.

This instalment is influenced by the interest rate linked to the vehicle finance contract, which is, in turn, impacted by factors such as personal credit score and the loan term.

Also, as stipulated in all vehicle finance contracts, it is compulsory for a financed vehicle to be comprehensively insured.

Insurance premiums vary depending on factors such as the make and model of the car, as well as the driver’s history and place of residence.

Despite recent improvements in the price of fuel, this remains one of the largest ongoing expenses in vehicle ownership.

To estimate monthly fuel costs, owners must determine their car's fuel consumption rate and the distance they travel each month.

Routine vehicle maintenance is important to ensure the safe and reliable operation of the vehicle. For the study vehicle, owners can expect to pay in the region of R475.75 a month, or R5 709 a year.

When combining all these costs, the current cost of ownership comes to R11 760.29 a month for 2025.