When most people work out whether they can afford a car, they look at one number: the monthly payment. But in South Africa the instalment is only part of the story. The real cost of owning a vehicle includes fuel, insurance, licensing, maintenance and depreciation — and understanding all of it is the key to buying a car you can genuinely afford. Here’s the full picture.

1. The cost of the car itself

This is the obvious one, but there’s a hidden trap: interest. With traditional bank finance, a large share of what you pay over the term is interest rather than the value of the car. On a multi-year loan that can add tens of thousands of rand to the true price. This is exactly why an interest-free model matters so much — with NBV rent-to-buy, your fixed monthly payment goes towards the vehicle, not towards a bank’s profit.

2. Fuel

With South African fuel prices where they are, this is often the biggest ongoing expense after the car payment. Your bill depends on three things: how far you drive, how thirsty your vehicle is, and how you drive it. A frugal 1.5-litre hatchback might sip fuel on your daily commute, while a big double-cab bakkie will cost significantly more to keep moving. Before you buy, estimate your monthly kilometres and be honest about consumption — it can make a bigger difference to your budget than the instalment itself.

3. Insurance

Comprehensive cover is essential, and in many areas it’s non-negotiable for peace of mind. Premiums vary with the car’s value, where you live and park, your age and claims history, and the vehicle’s theft risk. As a rough rule, more expensive and more “stealable” cars cost more to insure. Always get a quote before you commit to a vehicle, because a surprisingly high premium can blow your monthly budget.

4. Licensing and registration

Your annual vehicle licence renewal is an unavoidable running cost, and the fee scales with the weight and type of vehicle. It’s not huge, but it needs to be budgeted for so it doesn’t catch you off guard once a year. Keeping your licence current also avoids penalties.

5. Maintenance, servicing and tyres

Every car needs servicing, and eventually consumables like tyres, brake pads and a battery. Premium and performance cars generally cost more to service and shoe with tyres than mainstream models. If your vehicle is still under a service or maintenance plan, budgeting is easier; if not, set aside a monthly amount so a big service or a set of tyres doesn’t become a crisis.

6. Depreciation

Depreciation is the silent cost — the value your car loses over time. It doesn’t hit your bank account monthly, but it’s real, and it varies a lot between models. Cars with strong resale demand hold their value better, which matters when you eventually sell or trade in. Choosing a model known for holding value is a quietly smart financial move.

7. The extras: tolls, parking and fines

Depending on where you live and work, tolls and paid parking can add a meaningful amount each month. Add the occasional traffic fine and these “small” costs quietly add up. They’re easy to forget when you’re excited about a new car, but they belong in an honest budget.

Putting it all together

A useful exercise is to add up every one of these costs into a single monthly figure — instalment, fuel, insurance, a slice for licensing, and a maintenance buffer. That total, not just the instalment, is what the car really costs you each month. Many people are surprised to find the “true monthly cost” is well above the payment they were focused on.

The good news: you can control several of these levers. Choosing a fuel-efficient model, insuring sensibly, and — crucially — avoiding interest on the purchase itself can dramatically reduce your total cost of ownership.

How NBV lowers the biggest hidden cost

Fuel, insurance and maintenance depend largely on the car you choose. But interest is a cost you can remove entirely. Because NBV rent-to-buy is 100% interest-free and Shariah-compliant, you never pay a financing charge on top of the vehicle. Combined with a fixed, predictable monthly payment, that makes budgeting for the true cost of ownership far simpler.

Buy smart from the start

Work out your real monthly cost before you fall in love with a car, choose a model that fits both your needs and your budget, and remove interest from the equation. Browse the NBV showroom to compare fixed monthly figures, and complete a rent-to-buy application when you’re ready to own a car the affordable, interest-free way.