MOTORING NEWS - The cheapest car on the showroom floor is not necessarily the cheapest car to own.

That is becoming increasingly important for South African motorists as household budgets remain under pressure and buyers take a closer look at what a vehicle will cost them over its entire ownership period.

According to Brandon Cohen, chairperson of the National Automobile Dealers’ Association (NADA), consumers are increasingly looking beyond the purchase price and monthly instalment when making their decisions.

“Price remains the starting point for most vehicle buyers, particularly while South African households are under significant financial pressure. 

However, the vehicle with the lowest purchase price may not necessarily be the one that will prove most affordable over the full ownership period,” Cohen says.

The real cost of owning a car

South Africa’s new-vehicle market has remained resilient despite financial pressure on households, with the industry on track to sell more than 600 000 vehicles this year.

At the same time, the arrival of new automotive brands has given consumers a wider choice of competitively priced and well-equipped vehicles.

But Cohen says price and features are only part of the equation.

“Consumers are becoming more considered in their buying habits. They are increasingly asking what a vehicle will cost to finance, fuel, insure, service and maintain, as well as what support will be available throughout the ownership period and what the vehicle may be worth when they sell or trade it in,” he says.

Fuel consumption is an increasingly important consideration following substantial increases in fuel prices.

Insurance premiums, tracking-device requirements and the additional interest costs associated with longer finance periods can also make a significant difference to the overall cost of a vehicle.

Think beyond the monthly instalment

A vehicle that fits comfortably into a monthly budget can still become expensive to run.

Fuel, insurance, servicing, tyres, repairs and maintenance all contribute to the actual cost of ownership.

South Africans are also holding on to their vehicles for longer, making factors such as servicing costs, parts availability, maintenance plans and warranty extensions increasingly important.

“A manageable monthly instalment does not necessarily mean that a vehicle is affordable. Fuel, insurance, maintenance and other expenses should also be considered before a customer commits to the purchase,” Cohen says.

AI is changing how people shop for cars

The way consumers research vehicles is changing too.

Buyers have traditionally relied on online searches, reviews and comparison sites, but artificial intelligence (AI) tools are increasingly being used to compare models, specifications and potential ownership costs.

Cohen says this can help consumers become better informed, but believes technology does not replace the value of expert advice.

“Technology can provide information, but it cannot replace the experience of sitting in a vehicle, driving it, asking detailed questions and discussing your individual circumstances with someone who understands the product and the realities of ownership,” he says.

The dealership experience still matters

Buying a vehicle remains a significant financial decision, but it is also a personal one.

Cohen says the physical dealership gives consumers the opportunity to experience different vehicles, compare options and speak directly to people who can provide advice about finance, servicing and ownership.

“People ultimately buy from people. A vehicle is a significant financial commitment, but it is also a highly personal and often emotional purchase,” he says.

The relationship does not necessarily end when the paperwork is signed.

Servicing, maintenance, warranty claims, parts and technical advice can all form part of the ownership journey, making the dealership an ongoing source of support rather than simply the place where the vehicle is purchased.

Affordability depends on the individual

There is no single vehicle that will be the most affordable choice for every buyer.

A motorist who drives long distances every day will have different priorities from someone who mainly uses a vehicle for short trips. Similarly, someone planning to keep a car for 10 years may place greater importance on long-term maintenance costs than a buyer expecting to trade it in after three years.

Cohen says dealers can help consumers assess these factors alongside the information they find online.

“Dealers don’t compete on price alone. In a market with more brands, products and technologies than ever before, the quality of the physical dealership experience, supported by transparency, expertise and trusted human advice, will be a critical differentiator,” he says.

Ultimately, NADA's message is that affordability should be measured over the full ownership journey, rather than by the purchase price or monthly instalment alone.

“The responsibility of a dealership is not simply to determine whether a customer can afford to buy a vehicle today. It is to remain available to support them throughout the ownership journey,” Cohen says.

NADA is a proud association of the Retail Motor Industry Organisation (RMI).

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