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Rudolph Muller
02-15-2012, 07:40 PM
It costs 55% more to get and keep an entry-level vehicle on the road in South Africa than it does in the USA.

It will also take 95% of the average salary of a public school teacher to buy the vehicle, compared to only 23% in the USA.

This means that if that teacher could spend his entire monthly salary towards saving to buy the car, it would take South Africans 11.4 months to save the amount, while it would take an American teacher just shy of three months.

In an International Mobility Study released on Wednesday by moveable asset-based financier Wesbank, the cost of buying, using and maintaining an entry-level vehicle was compared across seven countries – Australia, Brazil, China, Germany, South Africa, the UK and the United States.

More here: http://www.moneyweb.co.za/mw/view/mw/en/page295023?oid=562139&sn=2009+Detail&pid=287226

McT
02-15-2012, 10:08 PM
Nice article ;)

We're definitely being fleeced. Fleeced on many fronts too.

After swallowing the huge bitter pill and making the initial purchase, you have to maintain the vehicle. The cost of servicing and spares is expensive. The cost of repairs following an accident is also stupidly over-priced. Cost of fuel. Cost of roads. Cost of wasted time commuting. Cost of parking (for some). Cost of financing. Cost of insurance.

Whew! Eina! And ouch!

Some of the costs could be addressed through efficient, cost effective public transport.

Also, do we need the variety of makes and models currently available. I think not. So it's nice to have so much choice, but there is little economy of scales. With the choice comes the huge price we must pay.

mercurial
02-15-2012, 10:51 PM
We are overcharged for everything in this country. Time to emmigrate.

Rudolph Muller
02-16-2012, 08:28 AM
South Africa’s Competition Commission has initiated a formalinvestigation into high car prices and a number of sales practices,which, if established, would be violations of the CompetitionAct.

The competition authority said yesterday that preliminaryinformation gathered, as well as the public outcry regarding newcar prices remaining high, notwithstanding the country’scurrency strengthening, is the driving force for furtherinvestigation of this industry.

I think South Africans has always overpaid for cars - nothing changed since 2004.

McT
02-16-2012, 09:24 AM
Hopefully the commission will get to grips if pricing in general.

fonoi
02-16-2012, 11:57 AM
Hopefully the commission will get to grips if pricing in general.

The prices in South Africa are generally crazy. There are many factors, one is the government messing with our currency to keep it at +- R8/$.

As usual they are benefiting a few to give the rest of us a hard time.

mercurial
02-16-2012, 05:56 PM
South Africa’s Competition Commission has initiated a formalinvestigation into high car prices and a number of sales practices,which, if established, would be violations of the CompetitionAct.

The competition authority said yesterday that preliminaryinformation gathered, as well as the public outcry regarding newcar prices remaining high, notwithstanding the country’scurrency strengthening, is the driving force for furtherinvestigation of this industry.

I think South Africans has always overpaid for cars - nothing changed since 2004.

Excellent! I hope they nail all those greedy corporate scumbags.

I wish they could bring the petrol down :p

robt
02-17-2012, 09:43 AM
Bloody frikkin hell! Bad enough that we don't have a decent public transport system and we're all forced to use cars - now I find out it also more expensive for us :(.

SA is a tough place for someone starting out - they need a job to afford a car but they also need a car to get a job.

McT
02-17-2012, 03:26 PM
SA is a tough place for someone starting out - they need a job to afford a car but they also need a car to get a job.

Damned if you do, damned if you don't.

HotPie
02-20-2012, 01:20 PM
I think the customs and excise duty might have something to do with car prices being so high in SA

trixie53
02-20-2012, 07:34 PM
All factors considered, what percentage of the population are affording cars ? It comes down to supply and demand.

noxibox
02-21-2012, 07:28 AM
Our secondhand prices are also hugely inflated. It generally seems even worse compared to other countries than the new prices.

But even in spite of the prices too many people in South Africa have cars in relation to the capacity of our roads. Nor do we have adequate capacity for proper driver instruction, a suitably high standard of testing and enforcement to keep unlicensed drivers off the road.


All factors considered, what percentage of the population are affording cars ? It comes down to supply and demand.
No it doesn't.


I think the customs and excise duty might have something to do with car prices being so high in SA
Vehicles manufactured in South Africa cost more. At one time a comparison was done between the price of a vehicle made in South Africa and sold in Australia, and the same vehicle sold in South Africa. It cost more here. Now of course it is very possible that because an imported vehicle is expensive due to duties that manufacturers inflate the prices of locally manufactured vehicles to similar levels (and this doesn't only happen on vehicles). In that case it would be appropriate to come down on their heads.

Space_Kriek
02-21-2012, 01:14 PM
no wonder more than half of the cars on the roads are falling apart

robt
02-22-2012, 05:26 PM
no wonder more than half of the cars on the roads are falling apart

Almost makes me feel ashamed for ramming up the bumper of a jelopy doing 40km on the highway the other day :D.

nanonyous
02-28-2012, 01:14 PM
That article ought to have included Japan. Fuel doesn't cost one much more there than it does anywhere else in the world, but insurance on a motor vehicle will cost you an arm and a leg, while the vehicles themselves will also cost you a few organs to buy new.

Many people are also under the impression that a motorcycle bought in Japan is cheaper than one bought here, since you're essentially buying it from home-turf - if what you're planning to buy is a 50cc scooter not found anywhere else in the world, sure, you can get yourself a nice little Honda/Suzuki/Yamaha/Kawasaki number for a cheap R8k.

Or you could just buy one of those R8k 125cc motorbikes we get from India, in South Africa...

All that said, the second-hand market for cars is excellent in Japan. You can get yourself a minivan-type vehicle for a cool R20k in excellent condition, and it'll come with things like central locking, multi-zone air conditioning, sometimes even parking sensors. That is, before you pay various levies and taxes to have it transferred to your name, but those seldom cost you more than R5k tops, unless you're lazy and not at all interested in learning a bit of Japanese, in order to avoid the car salesman offering to do all of that for you 'for the modest fee of R20k' (or more).

Also, I'd love to see a South Africa where our public transportation system is actually worth using. Currently, even if the train tickets don't cost you nearly as much as to operate a vehicle to get from point A to point B, the costs incurred from potential muggings on the stations, on the trains or in the over/underpasses at stations simply don't justify the savings. Even if you've nothing on your person to have stolen, the damage to your health that the stress of using our public transportation can cause, alone, can cost one a fortune in the long run.