Here’s how much your car costs have increased

21 August 2018 - 08:50
By Staff Reporter
Here’s how much your car costs have increased.
Image: Free stock image/pixabay Here’s how much your car costs have increased.

The average cost of motoring has increased by just over 30% in five years‚ due partly to increases in the petrol price.

“Despite prevailing interest rates remaining at low levels and favourable vehicle price inflation‚ the rising cost of petrol and an increase in VAT from 14% to 15% have resulted in higher overall costs when looking at the total monthly cost of motoring‚” according to the latest data from WesBank.

Vehicle instalments and fuel spend remain the biggest components‚ accounting for 80% of monthly mobility spend‚ the company said in a statement on Tuesday.

“The average costs of motoring have increased by approximately R940‚ or 14% in the last year‚ and 31% since 2013.”

These costs are reflected by the WesBank Mobility Calculator‚ a tool the bank uses to track and calculate historic motoring costs.

The total mobility basket comprises all fees that are involved in vehicle ownership: a monthly instalment‚ the insurance premium‚ fuel and maintenance. Over time‚ these costs are updated to reflect prevalent inflation rates and fuel prices‚ with the sample vehicle price based on an average entry-level car that travels approximately 2‚500km a month.

At the beginning of 2013‚ petrol cost R11.86 a litre‚ according to the AA – compared with the current R16/l for 95 unleaded.

“The past year has been a rollercoaster ride with drastic fuel price fluctuations making it difficult for consumers to keep track of monthly budgets‚” said Ghana Msibi‚ executive head of sales and marketing at WesBank.

“As a rule‚ we generally advise motorists to allow some breathing room in their budgets to help absorb these changing costs.”

WesBank’s data also indicates that purchase prices are steady. In July this year‚ WesBank’s average new vehicle financed deal was only 1.43% higher than the same time last year at R307‚445‚ while the average used vehicle finance deal is 6.9% higher than that of last year at R216‚309.

“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‚” said Msibi.

“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.”