As South Africans anticipate the 2026 National Budget Speech later in February (25th), motorists are watching closely for decisions that could affect their finances on and off the road. While the full details are still to be confirmed, existing economic signals already point to mounting pressure on car owners, from rising vehicle prices and financing costs to insurance, maintenance, and road safety concerns.
According to Mike Pashut, automotive industry expert, CEO of CHANGECARS, and presenter of All Things Motoring on Ignition TV (DStv channel 189), the Budget will arrive at a time when affordability is already stretched for many households.
“Even before any policy announcements, motorists are feeling the cumulative effect of inflation,” says Pashut. “The cost of owning and running a vehicle has risen steadily, and that makes every budget line item linked to transport important.”
Road safety, infrastructure and enforcement in focus
One of the key areas expected to draw attention is road safety funding. South Africa continues to record high road fatality rates, particularly during peak travel periods. While government has previously committed to improving road infrastructure and enforcement, we’re still waiting to experience a sense of consistency and implementation.
“Investment in road safety doesn’t start and stop at the construction of a new site,” says Pashut. “It requires ongoing maintenance, visible traffic enforcement, and reliable monitoring systems. Without sustained funding, those efforts tend to fall short.”
He adds that motorists often end up absorbing the cost of poor infrastructure through increased vehicle wear and tear, higher maintenance bills, and insurance claims linked to road conditions.
“If potholes, signage and lighting aren’t addressed, drivers pay for it directly, and sometimes long before they see any improvement.”
Rising costs and affordability pressure
At the same time, vehicle prices have increased over the past few years, driven by global supply chain pressures, exchange rate volatility, and higher input costs. While recent data points to stronger new vehicle sales, affordability remains a concern, particularly for first-time buyers and middle-income consumers, according to WesBank’s latest vehicle market commentary. The latter also warns of rising vehicle prices, extended loan terms and sustained interest rate pressure.
“Sales volumes can look healthy on paper, but that doesn’t mean vehicles are more affordable,” says Pashut. “What we’re seeing is buyers stretching loan terms or trading down to manage monthly repayments.”
Maintenance and insurance costs are also climbing, influenced by the price of parts, labour, and claims severity. For many motorists, keeping an existing vehicle on the road is no longer a simple cost-saving decision.
“There’s a tipping point where running an older car becomes more expensive than replacing it,” Pashut notes. “That’s why informed decision-making is critical right now.”
Making smarter car decisions in a high-cost year
Today, motorists are being forced to think more strategically about their vehicle choices. Pashut believes education and planning are key.
“Whether you’re buying new, trading in, or holding onto your current car, the decisions you make now can have long-term financial consequences,” he says.
Here are Pashut’s five tips for making the right financial car decisions this year:
- Understand the full cost of ownership: Look beyond the purchase price. Insurance, servicing, fuel consumption and depreciation all affect affordability over time.
- Be realistic about loan terms: Longer finance terms reduce monthly payments but increase total interest paid. Balance short-term relief with long-term cost.
- Time your trade-in carefully: Trading in before major maintenance milestones can help preserve value and avoid large repair expenses.
- Prioritise reliability over features: Advanced features can drive up repair costs. Proven reliability often delivers better value in the long run.
- Compare financing and insurance options: Don’t default to the first offer. Small differences in rates can significantly affect total cost over a vehicle’s lifespan.
Back to the Budget Speech; motorists will be looking for clarity on how government plans to support safer roads and manage transport-related costs. In the meantime, experts like Pashut advise consumers to stay informed, cautious, and proactive.
“In a high-cost environment, knowledge is one of the most powerful tools a motorist has,” he says.
