The hidden costs of car ownership in South Africa

Having observed the trends that shaped the automotive industry over many years, it’s clear to see how priorities have shifted. Today, many South Africans are making decisions based on what they can afford upfront, understandably so.

However, monthly repayments are only part of the picture. Due consideration must still be given to maintenance costs, used car values and inherent quality and technology.Real value goes far beyond the price on the showroom floor. In a market where economic pressure is real and new brands are constantly emerging, it has never been more important to distinguish between true premium products and experiences, ‘under the skin’ quality versus short-term appeal. In my opinion, the bigger picture is worth a thousand words.

The listed price is only the beginning. The real cost of a vehicle lies in how easy it is to maintain, how it holds its value, how efficient and effective the after sales experience is, how readily available the parts are, and the peace of mind it provides over time. These are the areas where trusted premium brands continue to prove their worth, often in ways that only become clear further down the road.A decade ago, the premium segment in South Africa was significantly larger than it is today. That shift reflects changing consumer priorities and tighter budgets.

Yet the core of the premium promise remains the same: thoughtful engineering, intelligent technology, safety you can count on, and confidence throughout the ownership journey.Some newer brands offer eye-catching benefits like lifetime plans or unlimited mileage warranties. At first glance, these sound compelling. But a closer look often reveals otherwise.

Either these plans are locked to ownership or impacted by limitations within the fine print. Additionally, the way people buy cars has evolved. Buyers are certainly doing more research. Access to online product information and offers, motoring reviews and comparisons, and a plethora of 3rd party sites all offering a variety of motoring information in the interest of creating business opportunities for themselves.

That means premium brands must meet people where they are, with mobility and ownership solutions that are both practical and consumer-focused. Our challenge locally is to make premium products and the brand more accessible to consumers, specifically through financing products.Traditional finance, by contrast, means paying off the full cost of the vehicle, along with interest, over the loan period.

Consumers take on the depreciation and are often responsible for the residual value, which can create shortfalls if the owner chooses to upgrade their vehicle. Over time, that can become more costly than it first appears. Not just in monetary terms, but in effort, maintenance risks, and lack of flexibility.

* Hoosen is the head of retail, planning and supply chain at Audi South Africa.

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