The cost of keeping your vehicle on the road
Finance repayment terms and insurance costs
The Covid-19 pandemic has dealt its own share of harm to the automotive industry, with the consequences still being felt today. Factory shutdowns, suspended manufacturing and semiconductor chip shortages have hampered regular production. If that wasn’t enough, the conflict in Ukraine has served up a host of unforeseen impacts, not only for the automotive sector but for world economies too.
With the lifting of the national state of disaster after 750 days of various levels of Covid-19 induced lockdowns, the country is slowly returning to some sort of normalcy. This includes many businesses and organisations encouraging their employees to return to the workplace.
However, while fuel prices continue to hit record levels due to, among other things, the ongoing unrest in Ukraine, fluctuations in the currency and a recent interest rate hike – the first of at least three for this year, economists have predicted – it is the consumer who has to face the brunt of continued rising prices. The past two years have seen many of us work from home, thus saving on motor vehicle costs such as fuel and maintenance with reduced usage. However, getting back on the road and having to manage the actual costs of vehicle ownership now also need to be factored into what is for many an already constrained budget.
“It is important to understand the total monthly costs of vehicle ownership, whether the car is being driven more frequently or not. Fuel consumption might vary accordingly, but fixed monthly payments, such as the vehicle finance repayment terms and insurance costs, remain a constant and need to be included in the monthly household budget,” says Lebogang Gaoaketse, WesBank Motor Head of Marketing and Communication.
This has led to South African motorists seeking affordability as a key consideration in the vehicle purchase decision. “This has seen the emergence of new brands focused on more affordable models, together with the introduction of many new entry-level options from established brands,” Gaoaketse continues. “These offerings also enable customers to tackle affordability at a lower price point, thereby lowering their monthly expenses, without sacrificing the benefits of new vehicle ownership.”
– MOTORPRESS
With the lifting of the national state of disaster after 750 days of various levels of Covid-19 induced lockdowns, the country is slowly returning to some sort of normalcy. This includes many businesses and organisations encouraging their employees to return to the workplace.
However, while fuel prices continue to hit record levels due to, among other things, the ongoing unrest in Ukraine, fluctuations in the currency and a recent interest rate hike – the first of at least three for this year, economists have predicted – it is the consumer who has to face the brunt of continued rising prices. The past two years have seen many of us work from home, thus saving on motor vehicle costs such as fuel and maintenance with reduced usage. However, getting back on the road and having to manage the actual costs of vehicle ownership now also need to be factored into what is for many an already constrained budget.
“It is important to understand the total monthly costs of vehicle ownership, whether the car is being driven more frequently or not. Fuel consumption might vary accordingly, but fixed monthly payments, such as the vehicle finance repayment terms and insurance costs, remain a constant and need to be included in the monthly household budget,” says Lebogang Gaoaketse, WesBank Motor Head of Marketing and Communication.
This has led to South African motorists seeking affordability as a key consideration in the vehicle purchase decision. “This has seen the emergence of new brands focused on more affordable models, together with the introduction of many new entry-level options from established brands,” Gaoaketse continues. “These offerings also enable customers to tackle affordability at a lower price point, thereby lowering their monthly expenses, without sacrificing the benefits of new vehicle ownership.”
– MOTORPRESS
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