South Africans still want cars. New models continue to enter the market, buyers have more choice, and demand for personal mobility remains strong.
Yet car affordability in South Africa continues to be one of the biggest challenges facing motorists.
The problem is not simply whether someone can afford the advertised price of a vehicle. Finance repayments, insurance, fuel, maintenance and other running costs all affect what a car really costs each month.
For some South Africans, qualifying for traditional vehicle finance creates another barrier altogether.
So, while the appetite for cars remains strong, accessing an affordable vehicle is not always straightforward.
Car prices are still a major commitment
Buying even an entry-level vehicle requires a significant financial commitment.
According to AutoTrader, the average new vehicle price in South Africa is approximately R500,000. At the lower end of the market, there are still new vehicles available for under R200,000, but options become more limited at these price points.
Used vehicles are not necessarily cheap either. AutoTrader data showed the average used vehicle price reaching approximately R423,080 by June 2026.
For many households, that means choosing a vehicle is increasingly about finding the right balance between what they need and what they can realistically afford each month.
The monthly instalment is not the full cost
A car advertised at a manageable monthly repayment can appear affordable at first.
However, the finance instalment is only one part of the cost of having a vehicle.
Motorists may also need to budget for:
- Comprehensive insurance
- Fuel
- A vehicle tracker
- Maintenance and servicing
- Tyres and other wear-and-tear items
- Licensing costs
- Finance and administration fees
A recent Cars.co.za calculation illustrates how quickly these costs can increase.
In its example, a vehicle with an estimated finance repayment of R5,800 per month could cost around R10,369 per month once insurance, tracking, fuel, maintenance and other expenses were included.
That is why car affordability in South Africa should be measured against the total monthly cost of the vehicle, not only the instalment.
Longer finance terms do not necessarily mean a cheaper car
Buyers may also be tempted by longer finance periods because they can reduce the monthly repayment.
A lower instalment can make a vehicle appear more affordable. However, paying a loan off over a longer period generally means paying interest for longer.
Balloon payments can also reduce monthly repayments, but they leave a larger amount outstanding at the end of the agreement.
These options may suit some buyers, but motorists should understand the total cost and structure of the agreement before making a decision.
A lower monthly payment does not automatically mean a cheaper vehicle.
What if traditional vehicle finance is not an option?
The affordability conversation goes beyond vehicle prices.
Traditional vehicle finance in South Africa normally includes a credit assessment. A customer’s credit history, existing debt and affordability can all influence whether an application is approved.
As a result, people who are blacklisted, under debt review, self-employed or have a limited credit history may find it more difficult to access traditional finance.
Someone may need a vehicle for work or family responsibilities and have sufficient monthly income, but still struggle to qualify through a conventional lender.
This is one reason alternative ways of accessing a vehicle have become increasingly relevant.
Rent to buy offers another route to a vehicle
Rent to buy cars in South Africa provide an alternative for motorists who may not want, or may not qualify for, traditional bank finance. South Africans get to choose from brand new or used vehicles.
Rent to buy is different from a conventional vehicle loan. Instead, the customer rents the vehicle over an agreed term. Depending on the agreement and provided its conditions are met, the customer has the option to take ownership at the end of the term.
SA Motor Lease offers rent to buy vehicles to qualifying customers, including people who are blacklisted, under debt review, self-employed or have a limited credit history.
Rather than relying only on a traditional credit score, affordability remains an important part of determining whether the monthly payment is manageable for the customer.
Affordability should determine the car, not the other way around
There may be more choice in South Africa’s vehicle market, but that does not remove the need to budget carefully.
Before committing to a vehicle, motorists should consider the complete monthly cost, their current financial commitments and how much room they have in their budget if expenses increase.
It may also be worth considering different ways of accessing a vehicle instead of assuming traditional finance is the only option.
Whether you buy, finance or choose rent to buy, the principle should remain the same.
The right car is not simply the one you want or the one with the lowest advertised instalment. It is the vehicle that meets your needs while remaining affordable month after month.