How Much Do South Africans Owe on Their Cars?
South Africans Owe Around R250 000 on Their Cars
New data from credit bureau TransUnion shows that the average South African who has financed a car still owes the bank about R249,420 on their vehicle.
This is based on the latest numbers from the end of 2024, which means many motorists still have a long way to go before fully owning their cars.
2 Million Car Being Paid Off
It is said that there are around 13 million registered cars in SA. Out of that number, there are around 2.17 million vehicle finance accounts in the country.
If you do some quick math that adds up to a massive R541.72 billion in vehicle debt that people are currently paying off. Obviously, some people still have a lot more to pay and others a lot less, but this average gives us a good idea of where most car owners stand.
The Average is Up
The average amount owed by people paying off financed vehicle (and this includes companies and individuals) has also gone up — increasing by just over 5% compared to the same time the previous year. The main reason is that new cars are getting more expensive
People Are Buying More Used Cars
While new car prices are up, second-hand car prices have actually dropped, making them an increasingly popular choice. Of course, people still need to borrow to pay off such cars.
For every new car financed, about one and a half used cars are financed. Most people are also choosing mid-range car loans, between R250,000 and R750,000, which now make up over 65% of all financed vehicles.
Car Sales Are Up But…
Even with tough economic times, it seems that based on the stats vehicle purchases and finance is showing some signs of recovery, with the total value of vehicle loans growing steadily. But looking ahead, there’s some uncertainty in the market.
The ongoing US tariff disputes with other countries is currently upsetting global trade, and this is bound to impact local car prices in time. If the cost of importing cars, parts, or materials rises, it will then most likely push up the prices of both new and used and that would directly affect how much people need to borrow, and what their monthly repayments might look like.