Buying a car in South Africa increasingly means making a financial commitment that can last for most of a decade.
According to TransUnion, 56.4% of consumers who financed vehicles in the fourth quarter of 2025 chose loan terms of 72 months or longer, up from 51.9% a year earlier. It was the first quarter this decade in which more than half of financed buyers selected the longest vehicle finance terms available.
For many motorists, longer finance terms make sense for one clear reason: they can reduce the monthly repayment.
But they also raise a bigger question.
If you are going to pay for a car for six or seven years, is traditional vehicle finance still the only way to think about getting one?
Why are South Africans financing cars for longer?
Affordability is one of the biggest pressures facing vehicle buyers.
Vehicle prices, fuel, insurance and other household expenses all compete for the same monthly income. Extending a vehicle loan allows buyers to spread the cost over a longer period and bring the monthly instalment down.
The trend has been developing for some time. TransUnion reported that the average term for vehicle finance granted in the second quarter of 2025 had reached 74 months, compared with 72 months two years earlier.
Traditional instalment finance in South Africa now commonly runs for 72 to 84 months, according to the National Automobile Dealers’ Association.
A lower monthly instalment can improve short-term affordability, but motorists should also consider what that commitment means over the full term.
A lower instalment does not always mean a lower cost
When comparing ways to get a car, it is easy to focus only on the number leaving your bank account each month.
However, the vehicle instalment is not necessarily the full cost of having the car.
Depending on the finance arrangement, motorists may also need to budget for insurance, tracking, licensing, maintenance and other ownership expenses.
Longer finance terms can also mean paying interest for longer. TransUnion has highlighted that extended loan terms can increase exposure to issues such as negative equity, where the outstanding finance balance may remain higher than the vehicle’s value for longer.
Balloon payments can reduce the monthly instalment further, but they leave a larger amount payable at the end of the agreement.
That is why the better question may not simply be:
“What is my monthly instalment?”
It may be:
“What will this car actually cost me every month, and what am I getting in return?”
Are there alternatives to traditional car finance?
As affordability becomes more important, motorists have more ways to access vehicles than traditional bank finance alone.
These can include leasing, long term rental, subscription-style services and rent to buy cars.
Each works differently and will suit different customers.
Rent to buy, for example, can provide an alternative for motorists who want a longer-term vehicle solution but may not qualify for conventional vehicle finance or simply prefer a different way of accessing a car.
This is particularly relevant for people with impaired credit records, those who have been blacklisted, self-employed motorists and customers whose income does not fit neatly into traditional lending criteria.
How does SA Motor Lease rent to buy work?
SA Motor Lease offers rent to buy cars over terms of 48, 54 or 60 months.
Rather than applying for traditional bank vehicle finance, customers are assessed based on factors including their ability to afford the monthly rental.
The monthly payment includes several vehicle costs that would often need to be arranged separately when buying a financed car, including theft and damage cover, tracking, annual licensing and 4000 kms.
Customers can also select an optional maintenance plan.
After completing the full rental term and meeting the agreement conditions, the customer has the option to purchase the vehicle for R100.
This means rent to buy should not necessarily be viewed as a cheaper version of vehicle finance. It is a different way of accessing a vehicle, with a different structure and different benefits.
What should motorists compare before committing to a car?
Whether choosing vehicle finance or rent to buy, motorists should look beyond the advertised monthly payment.
Consider the total monthly cost, what expenses are included, the length of the agreement and what happens at the end.
Someone considering a 72 or 84-month finance agreement is already making a long-term commitment. It therefore makes sense to compare that option with other ways of getting a car before signing.
The cheapest monthly payment is not automatically the best option. The right choice depends on income, credit circumstances, flexibility and long-term plans.
Is the future of car ownership changing?
South Africans clearly still want cars. What may be changing is how they expect to pay for and access them.
Longer finance terms are one sign that affordability is reshaping the automotive market. At the same time, alternative models such as rent to buy are giving motorists additional routes to mobility.
In the future, choosing a car may increasingly become less about asking “Can the bank finance me?” and more about asking:
“Which way of getting a car works best for my finances and my life?”
For motorists exploring alternatives to traditional vehicle finance, SA Motor Lease’s rent to buy model is one of the options changing that conversation.