OWNING a car comes with costs that many consumers have to contend with daily.
This is according to Lebogang Gaoaketse, WesBank’s head of marketing and communication, who says the effects of the Covid-19 pandemic on the automotive industry are still being felt.
In a statement, Gaoaketse said motorists at large were paying a hefty price due to the continuous increases in fuel caused by the ongoing unrest between Russia and Ukraine.
“It is important to understand what makes up the total monthly cost of vehicle ownership, whether being driven more frequently or not. While fuel consumption might vary accordingly, the fixed monthly payments, such as car finance and insurance costs, are constant expenses that need to be included in the monthly household budget,” he said.
He added that all these costs had resulted in car owners considering affordability as a key consideration in the purchasing decision.
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Gaoaketse said the 2022 figures indicated that car instalments and fuel spending remained the largest portions of the basket, accounting for 81% of the monthly spend.
“Fuel spend accounts for 39% of the total, with the vehicle instalment cost at 42%. The figure for November indicates that the average monthly fuel spend, at R3 950, is almost on par with the car instalment rate at R4 313,” he said.
“The monthly insurance cost of R1 409 makes up 14% of the cost, with running costs per month accounting for the final 5% at R493,” he added.
