• News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa
Monday, October 6, 2025
  • Login
Auto Journal Africa
  • News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa
Ask Autojorunal AI
No Result
View All Result
  • News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa
No Result
View All Result
Morning News
No Result
View All Result
Home News

Short relief, long pain: Why car loans cost 36% more in South Africa

David Ijaseun by David Ijaseun
August 26, 2025
in News, Premium
0
Car loans in South Africa
2.5k
SHARES
13.5k
VIEWS
Share on FacebookShare on Twitter

South Africans are driving deeper into debt as car loans stretch over longer periods, offering short-term relief but adding heavy long-term costs.

Data from research firm Lightstone Auto shows that the average vehicle loan now runs for 72 months, six years, reflecting the country’s ongoing cost-of-living crisis. Many households are cutting back to a single car but financing it for longer, often without a deposit.

READ ALSO

Renault plans to cut 3,000 jobs to stay competitive amid rising costs

U.S. faces sharp drop in electric vehicle sales after tax credit ends

“South Africans are under immense pressure. They want mobility but can’t afford it upfront,” said Andrew Hibbert, a data analyst at Lightstone Auto. “The six-year repayment window has dominated since 2015, peaking at 87% of deals in 2020. Today, it still accounts for 72% of loans. But we’re now seeing even longer terms, some reaching eight years.”

More debt for short-term relief

A longer loan lowers monthly instalments, giving buyers breathing room. But it also piles on interest charges, leaving motorists paying far more than the car is worth.

Take the Toyota Corolla Cross, one of South Africa’s bestsellers, for instance. The entry-level model retails at R414,800, with the prime lending rate at 10.5%. Without a deposit, a 72-month contract works out to R7,881.19 per month.

By the end of the loan, the buyer pays R567,445.68, nearly R153,000 more than the sticker price. That’s a 36% increase due to interest alone.

Longer contracts becoming the norm

Back in 2015, five-year terms were the second most common option. But in 2025, eight-year contracts are climbing fast, replacing 60-month deals.

For many, it is the only way to afford a car, even though the long-term financial impact is severe. “The shift tells us cars are becoming unaffordable for the average South African,” Hibbert said.

A squeeze on families

The country’s economic struggles have forced households to adapt. Families that once owned two cars are often selling one to save money. But even then, the single car often comes with a loan that lasts nearly a decade.

Consumers, Hibbert warned, should be cautious. “Lower installments may ease the monthly burden, but the total cost is much higher. It’s a trade-off many don’t fully calculate until it’s too late,” he said.

The data underscores a painful reality: South Africans are keeping their wheels turning, but at a high price that may haunt them for years.

Read more on Why Volkswagen, Volvo, Toyota recall nearly 7,000 vehicles in South Africa

Tags: car loanHeadlineSouth Africa

Related Posts

Renault
News

Renault plans to cut 3,000 jobs to stay competitive amid rising costs

October 5, 2025
U.S. electric vehicle tax credit
Electric Vehicles

U.S. faces sharp drop in electric vehicle sales after tax credit ends

October 5, 2025
Nord Motors SUV
Business

Minister backs Nigerian innovation, picks Nord Demir as official vehicle

October 5, 2025
electric vehicles (EVs)
News

China to tighten EV exports with permit system after 1.65m shipped in 2024

September 27, 2025
Siltech World Falcon Elohim bike in USA (4)
Africa

Nigeria’s SiltechWorld makes history with Africa’s first EV export to U.S.

September 24, 2025
Porsche Italia & Ferragamo - 911 and Taycan Models
Business

Investors punish Porsche as EV rollout stalls and profit forecast drops to record low

September 24, 2025
Next Post
Suzuki to invest $8bn into India as first EV rolls off Gujarat plant

Suzuki to invest $8bn into India as first EV rolls off Gujarat plant

POPULAR NEWS

Inferno at Toyota 1000 Desert Race consumes 49 cars

Inferno at Toyota 1000 Desert Race consumes 49 cars

July 3, 2023
Mobius Motors

Mobius Motors: Rising taxes, competition ends Kenyan SUV maker’s journey

August 7, 2024
Autojournal car race

Get ready for the biggest RACE show this December in Nigeria

August 12, 2024
From style to sustainability: How Geely Auto is shaping the future of luxury vehicles

From style to sustainability: How Geely Auto is shaping the future of luxury vehicles

October 25, 2024
Oyo State Governor gifts Saheed Osupa Toyota Prado SUV worth ₦70M 

Oyo State Governor gifts Saheed Osupa Toyota Prado SUV worth ₦70M 

August 22, 2023

EDITOR'S PICK

Oceanco unveils the 364-foot Y726, one of its largest megayachts

Oceanco unveils the 364-foot Y726, one of its largest megayachts

June 16, 2025
Elon Musk

Tesla shares jump as Musk’s $1bn stock buy renews investor faith

September 15, 2025
FIA President

FIA introduces rotating race directors for F1 2025 to enhance efficiency

February 8, 2025
Airport flight delayed

Stunning statistics: Weather responsible for 70% of airport delays worldwide

July 18, 2023

About

Auto Journal Africa is the leading online and print magazine for automobiles in Africa.

Follow us

Recent Posts

  • Renault plans to cut 3,000 jobs to stay competitive amid rising costs
  • U.S. faces sharp drop in electric vehicle sales after tax credit ends
  • Minister backs Nigerian innovation, picks Nord Demir as official vehicle
  • Uber launches women-only rides in South Africa to boost safety and trust

Links

  • Privacy Policy
  • About Us
  • Contact Us
  • News
  • Reviews
  • Events
  • Tools
  • For Sale

© 2023 Auto Journal

No Result
View All Result
  • News
    • Tech
    • Lifestyle
    • Business
    • Opinion
    • Premium
  • Reviews
  • Events
    • Nigeria
    • South Africa
  • Tools
    • Price Guide
    • Find your idea car
    • Car valuation
    • Sell your car
    • Car insurance quote
    • Locate a dealer
    • Deals
  • For Sale
    • New Cars for sale
    • Cheap Cars for sale
    • Bikes for sale
    • Trucks for sale
    • Boats for sale
    • Jets for sale in Africa
    • Cars under 5m
    • EV in Nigeria
    • EV in South Africa

© 2023 Auto Journal

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In