Buying a vehicle in South Africa is becoming about far more than the purchase price. Consumers are increasingly weighing the long term financial implications of vehicle ownership, from fuel and maintenance costs to finance structures and resale values.
These trends are highlighted in the Q1 2026 Mobility Report by TransUnion, which amongst other factors examines how affordability is influencing buying decisions across the automotive market.
The report shows that consumer appetite for purchasing vehicles improved modestly during the first quarter of 2026 as affordability conditions strengthened and confidence began to recover. Younger consumers continue to drive much of this demand, although buyers across all income groups are becoming increasingly sensitive to affordability. At the same time, hybrid vehicles are strengthening their position as the leading electrified transition pathway option as motorists seek lower running costs. .
A key theme emerging from the report is the growing importance of total cost of ownership. This shift reflects the financial pressures many households continue to face. Rising vehicle prices have resulted in larger finance agreements, with more buyers relying on extended loan terms, balloon payments and other financing structures that reduce monthly repayments.
While these options improve short term affordability, they can increase the overall cost of borrowing and expose consumers to refinancing challenges or negative equity if vehicle values decline faster than expected.
Residual values are also becoming increasingly important. As finance periods extend beyond six years for many buyers, the future resale value of a vehicle plays a greater role in determining its overall affordability. Established brands continue to perform strongly in this area, while Chinese manufacturers are narrowing the gap as dealer networks expand, parts availability improves and consumer confidence grows.
Running costs are placing additional pressure on household budgets. Fuel price volatility remains a major concern, while maintenance costs, tyre and battery replacement and increasingly complex vehicle technology are adding to the cost of ownership. Although insurance inflation has remained relatively contained, repair costs continue to rise.
Energy costs are also influencing purchasing decisions. Higher fuel prices have improved the appeal of hybrid vehicles, while falling entry prices for electric vehicles have begun to change the ownership equation. However, charging infrastructure, electricity tariffs and local operating conditions continue to slow widespread electric vehicle adoption.
The report concludes that consumers are increasingly prioritising affordability, financial flexibility and ownership risk over the simple goal of vehicle ownership. The central question for many buyers is no longer what a vehicle costs to purchase, but what it will cost to own, operate and eventually sell throughout its lifecycle. This changing approach is influencing decisions across the automotive value chain, from manufacturers and lenders to insurers and dealers.
Electric vehicles (EVs) have introduced a whole new vocabulary into motoring. Instead of simply talking about litres of fuel, cylinders and kilometres per tank, motorists are now confronted with kW, kWh, AC, DC, WLTP, regenerative braking and a host of other terms.
Young South African motorists are increasingly opting for more affordable and practical vehicles as the cost of living puts pressure on household budgets, while still maintaining comprehensive insurance cover.
The row over BMW’s Spider-Man promotion is not really about superheroes. It is about trust, control and the creeping feeling that modern cars are becoming digital platforms first and private possessions second.
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I have bad reflexes. I was once run over by a car being pushed by two guys
Woody Allen
Young South African motorists are increasingly opting for more affordable and practical vehicles as the cost of living puts pressure on household budgets, while still maintaining comprehensive insurance cover.
The row over BMW’s Spider-Man promotion is not really about superheroes. It is about trust, control and the creeping feeling that modern cars are becoming digital platforms first and private possessions second.
With forecasts of snow, icy rain and stormy weather across the country, motorists are urged to drive carefully and adapt their driving style to suit the conditions.
