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Cape Town - With seemingly never-ending petrol price hikes and shrinking budgets, hard-pressed consumers' thoughts may well turn to renting as opposed to buying a car.
So let's look at both options, using Toyota's popular Etios 1.5 SD XS as a yardstick.
According to Anthony Luyt, salesperson at Rola Toyota Somerset West, the Etios is currently priced at R126 700. Luyt gives a comprehensive breakdown of what you can expect to pay if you buy a brand new vehicle
Monthly instalments with a 10% deposit over 54 months are about R3 000 per month, says Luyt. With a 10% deposit and a 25% residual or balloon payment, the monthly cost drops to about R2 600p/m.
The full maintenance plan for the Etios for 60 000km or five years is R13 091.40.
What can you expect to pay for insurance? Motor finance company Ariva says insurance premiums on vehicles within the Etios' price range are about R1 017p/m. This is only a rough estimate though as "each individual will attract a different insurance rate depending on a number of factors".
Insurance premiums from other insurance companies probably average between R800p/m to R1 500p/m, according to Ariva.
Bear in mind that if you have an accident, your insurer will pay out for collision damages but you as owner are still liable for an excess payment.
Is rental the option for you?
So how does that compare to the rental option? Heather Mahlaji, national mini-lease coordinator of Avis car rental, gives a detailed price breakdown of rental costs you can expect to pay for the Etios.
On the long-term mini-lease option of 11 months, it would cost R 5 729.87, says Mahlaji.
This monthly rate covers VAT, public liability insurance, oil and maintenance on the vehicle. It also includes 3 000 kilometres per month; if you go over that, an additional fee is charged per kilometre.
Eventualities for car rental include an admin fee of R550 for theft and collision and a R220 admin fee for traffic fines. Optional extras such as personal accident insurance and windscreen and tyre cover are also charged separately.
Besides the fixed costs of buying or renting a vehicle, drivers also need to make provision for fuel, general wear and tear, car washes and valets, and parking expenses.
Don't overlook the cost of depreciation if you are looking to buy your wheels, cautions Ariva. "Depreciation is a real cost to the vehicle owner and will vary from vehicle to vehicle."
The average car priced at R150 000 will lose about 15% of its value per annum over five years, with the average book value at the end of the five-year period dropping to 38%-45% of its original value, according to Ariva.
Depreciation is one of the biggest "expenses" but largely ignored by consumers.
- Fin24
So let's look at both options, using Toyota's popular Etios 1.5 SD XS as a yardstick.
According to Anthony Luyt, salesperson at Rola Toyota Somerset West, the Etios is currently priced at R126 700. Luyt gives a comprehensive breakdown of what you can expect to pay if you buy a brand new vehicle
Monthly instalments with a 10% deposit over 54 months are about R3 000 per month, says Luyt. With a 10% deposit and a 25% residual or balloon payment, the monthly cost drops to about R2 600p/m.
The full maintenance plan for the Etios for 60 000km or five years is R13 091.40.
What can you expect to pay for insurance? Motor finance company Ariva says insurance premiums on vehicles within the Etios' price range are about R1 017p/m. This is only a rough estimate though as "each individual will attract a different insurance rate depending on a number of factors".
Insurance premiums from other insurance companies probably average between R800p/m to R1 500p/m, according to Ariva.
Bear in mind that if you have an accident, your insurer will pay out for collision damages but you as owner are still liable for an excess payment.
Is rental the option for you?
So how does that compare to the rental option? Heather Mahlaji, national mini-lease coordinator of Avis car rental, gives a detailed price breakdown of rental costs you can expect to pay for the Etios.
On the long-term mini-lease option of 11 months, it would cost R 5 729.87, says Mahlaji.
This monthly rate covers VAT, public liability insurance, oil and maintenance on the vehicle. It also includes 3 000 kilometres per month; if you go over that, an additional fee is charged per kilometre.
Eventualities for car rental include an admin fee of R550 for theft and collision and a R220 admin fee for traffic fines. Optional extras such as personal accident insurance and windscreen and tyre cover are also charged separately.
Besides the fixed costs of buying or renting a vehicle, drivers also need to make provision for fuel, general wear and tear, car washes and valets, and parking expenses.
Don't overlook the cost of depreciation if you are looking to buy your wheels, cautions Ariva. "Depreciation is a real cost to the vehicle owner and will vary from vehicle to vehicle."
The average car priced at R150 000 will lose about 15% of its value per annum over five years, with the average book value at the end of the five-year period dropping to 38%-45% of its original value, according to Ariva.
Depreciation is one of the biggest "expenses" but largely ignored by consumers.
- Fin24
