Running Costs & Ownership
The full cost of owning a new car in South Africa: instalment, fuel, insurance, servicing, tyres, licensing and depreciation, and how to keep it down.
6 topics · 24 answered questions · 2 articles
The instalment is the number everyone focuses on, but it is only one line in the monthly cost of owning a car. Fuel, comprehensive insurance, servicing and tyres, the annual licence and the slow, invisible cost of depreciation all sit alongside it. Two cars with similar instalments can differ widely once these are added up, which is why a cheaper car to buy is not always a cheaper car to own.
This category breaks down each of those costs for South African conditions, explains what drives them and shows where you have room to save. Car4Less lowers the largest item, the amount you finance, by offering every new car below the manufacturer's retail price, and the guides and calculators on the site help you budget for everything else before you commit.
Topics
Explore Running Costs & Ownership
Each topic has its own page with a plain-English explanation, the related articles and the questions people ask most.
Total Cost of Ownership
How to add up the true monthly cost of a car, including the costs that never appear on the finance quote.
1 article · 4 answers
Fuel Costs
Budgeting for fuel: how to estimate your monthly spend, what moves the pump price and the habits that reduce the bill.
4 answers
Car Insurance Costs
What drives your comprehensive insurance premium, why financed cars must be insured and how to keep cover affordable.
4 answers
Depreciation & Resale
The biggest hidden cost of a new car: how depreciation works, which cars hold value and how to protect your resale price.
1 article · 4 answers
Licensing & Admin
Licence renewals, registration, roadworthy rules, tolls and traffic fines: the small admin costs of keeping a car legal.
4 answers
Cheapest Cars to Run
What makes a car cheap to own, the body styles and powertrains that keep costs down, and the traps that make a bargain expensive.
4 answers
Articles
Latest in Running Costs & Ownership
Depreciation: The Cost That Quietly Outspends Your Fuel Bill
Fuel is the cost drivers complain about; depreciation is the one that actually costs more. It is silent, gradual and settled in one lump on trade-in day. Here is how it works, which cars resist it and the one lever most buyers overlook.
05 Sep 2026 · 3 min read
The Real Monthly Cost of Owning a Car Goes Well Beyond the Instalment
Ask most people what their car costs and they quote the instalment. For almost every driver it is well under half of the true figure. Fuel, insurance, servicing, tyres, licensing and depreciation make up the rest, and adding them up takes only a few honest numbers.
15 Aug 2026 · 3 min read
Quick answers
One question from each topic. Open the topic for the full set.
What is included in the total cost of owning a car?
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The instalment and interest on your finance, fuel or electricity, comprehensive insurance, servicing and repairs outside any plan, tyres and wear items, the annual licence and any tolls or parking you pay regularly, plus depreciation, which is the difference between what you paid and what you get back when you sell. Together they give a realistic monthly figure.
How do I work out my monthly fuel cost?
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Estimate your monthly distance, divide by one hundred and multiply by your car's consumption in litres per hundred kilometres to get litres used, then multiply by the current pump price. Use a consumption figure somewhat above the official one to be realistic. Keep a note of the trip computer's average once you own the car and refine the estimate.
Do I have to insure a financed car?
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Yes. Vehicle-finance agreements require comprehensive insurance for the full term, because the bank has an interest in the car until it is paid off. You choose the insurer, but the cover must be in place before the car is delivered. Letting it lapse breaches the finance agreement, so budget for the premium as part of the instalment.
How much value does a new car lose?
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The steepest drop comes in the first year or two, after which the decline slows. The exact amount depends heavily on the model and brand: bakkies and popular reliable brands tend to hold value well, while some luxury and niche models fall faster. Look at used listings for three-year-old examples of the car you are considering to see the pattern.
How much does a car licence cost each year?
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The annual licence fee is set by each province and depends mainly on the vehicle's tare weight, so heavier cars and bakkies pay more. Renewal notices are sent before the disc expires, and payment can be made at licensing offices, some post offices and online in most provinces. Late renewal attracts penalties, so diarise the date.
What type of car is cheapest to run?
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Generally a small petrol or hybrid hatchback or compact crossover from a mainstream brand. They use little fuel, are cheap to insure, run on small tyres, come with service plans and hold their value because there is always demand for them. Choose a modest engine and standard specification rather than the biggest wheels and the most powerful variant.
Other categories
Buying a New Car
Everything about buying a brand-new car in South Africa: budgeting, cash or finance, timing, test drives, ordering, delivery and the paperwork.
Car Finance
Vehicle finance in South Africa explained: applications, credit, interest rates, deposits, terms, balloon payments, settlement and what to do if you are declined.
Trade-Ins
How trade-ins work in South Africa: valuations, trade-in versus private sale, outstanding finance, equity and preparing your car for the best offer.
Choosing the Right Vehicle
Honest, South-African-specific help with matching a new car to your life: body style, seats, boot space, commuting distance and business use.
Body Styles & Segments
A plain-English guide to every new-car body style sold in South Africa: SUVs, bakkies, hatchbacks, sedans, 7-seaters, luxury and performance cars.
Petrol, Diesel, Hybrid & Electric
How petrol, diesel, hybrid, plug-in hybrid and electric cars really differ: running costs, driving feel, charging and which suits South African conditions.
Put it into practice
Browse over 1 318 new cars, every one below the manufacturer's retail price.