How much that new car is really costing you

Keeping your car for longer can significantly improve your financial position

While upgrading every few years feels normal for many South Africans, it often keeps you locked into higher costs for longer than necessary.

Key benefits of holding onto your car:

• Frequent upgrades trigger repeated depreciation, higher insurance premiums and longer finance terms
• A paid-off or older car frees up monthly cash flow and reduces financial stress
• Simple, consistent maintenance habits prevent major repair costs later
• Learning basic car care builds confidence and lowers ownership costs
• Planning your next car while still driving your current one removes urgency and pressure

Here’s a scenario many South African drivers will recognise: after about three years of car ownership, your service plan is ending, the mileage is climbing and a small, worrying noise starts to creep in. That low-level unease makes upgrading to a new car feel like the responsible move - an easy way to avoid risk, repairs and inconvenience. But what feels like safety is often just habit (and a bit of clever marketing). The result is a cycle where you keep returning to the most expensive phase of car ownership (early depreciation, new finance terms and higher insurance) without ever reaching the point where the car actually becomes cheaper to run.

The real cost of starting over

Every time you change cars, you reset the clock financially, and that comes with real costs. Depreciation is the biggest one: a car loses value fastest in its first few years, often dropping significantly the moment you drive it off the showroom floor and continuing steeply after that. When you upgrade regularly, you’re repeatedly paying for that early loss in value instead of moving past it.

Vehicle finance adds another layer of cost and it’s not always like-for-like. Each new deal comes with a fresh loan term (often 60–72 months), but also a new interest rate that isn’t guaranteed to match your previous one. While your credit profile plays a role, your rate is also influenced by broader factors like the national interest rate and lending conditions at the time. If rates have increased, you could end up paying significantly more in interest on a similar or higher loan. So even if the monthly repayment looks familiar, you may be taking on a longer commitment at a higher overall cost.

Insurance tends to follow the same pattern. Newer cars are more expensive to insure, particularly when they’re financed or higher in value. On their own, these costs may seem reasonable. But together, they create a cycle where money continuously flows out, with very little time spent in a later, lower-cost phase of car ownership.

How to manage an ageing car (without becoming a mechanic)

Owning an older car is less about how long it lasts and more about how you show up as an owner. For many people, this is where uncertainty comes in. Not because the tasks are complex, but because they were never taught to do them. Basic checks like oil, water and coolant levels can feel unfamiliar at first, yet they play a major role in preventing bigger issues later.

Check and top up your engine oil

Park on a flat surface and let the engine cool. Pull out the dipstick, wipe it clean, reinsert it, then pull it out again to read the level. If it’s below the minimum mark, top up with the correct oil (your manual will specify which type). Do this slowly, pouring in small amounts at a time, and recheck. Low oil increases engine wear over time, often without obvious warning.

Monitor your coolant level

Only check coolant when the engine is completely cool. Open the bonnet and locate the coolant reservoir (usually a translucent tank with “min” and “max” lines). If the level is low, top up with the correct coolant or a water-coolant mix. Running low on coolant can cause overheating, which is one of the fastest ways to damage an engine.

Keep an eye on water levels (if applicable)

Most modern cars have sealed cooling systems, so you’ll usually only need to monitor the coolant reservoir. However, if you drive an older vehicle, you may need to check the radiator water level directly. Always make sure the engine is completely cool before opening the radiator cap, as hot systems are pressurised and can cause injury. If the level is low, top up with water or the correct coolant as needed. For most drivers, sticking to the reservoir is both safer and sufficient.

Stick to service intervals

Even if the car feels fine, don’t skip scheduled services. Oil changes, filter replacements and inspections are what catch small issues early before they turn into expensive repairs.

Watch your tyres and brakes

Check tyre pressure monthly (most petrol stations have gauges) and keep an eye on tread wear. Uneven wear can signal alignment issues. Pay attention to braking. Squeaking, grinding or reduced responsiveness when braking usually means it’s time for new brake pads.

Budget for wear-and-tear parts

Tyres, brake pads and batteries will all need replacing over time. These aren’t surprises; they’re part of car ownership. Expecting them and budgeting for them makes them easier to handle when the time comes.

Create a maintenance fund

Put away a fixed amount each month specifically for your car. It doesn’t have to be large, but it creates a buffer. That way, when something needs attention, you’re not scrambling because you’ve already made provision for it.

None of this is complicated, but it does require consistency. Instead of reacting to problems, you stay slightly ahead of them and that’s what keeps an older car reliable and far more affordable to run.

Keeping your car longer allows you to plan and save for the next one

The real advantage shows up when you start preparing for your next car while still driving your current one. By keeping your car longer, you create time to save gradually towards its replacement. You can estimate what a future car might cost, factor in inflation and set aside an amount each month that fits your budget.

When it’s time to replace your car, you’re no longer starting from zero. You may be able to put down a larger deposit, reduce how much you need to finance or avoid financing altogether. The upgrade then becomes a planned step made from a position of preparation, not pressure.

A different kind of confidence

Keeping your car for longer does ask more of you. It requires some attention, a willingness to learn the basics and an acceptance that occasional repairs are part of the deal. But in return, you get a clearer understanding of your car, your costs and how to manage both without constant upgrades.

Upgrading every few years may be common in South Africa, but it’s not the only option. Keeping your car longer gives you more control over your money, reduces how often you take on new debt and allows you to plan your next move without pressure.