Depending on how much you drive daily, using Uber could be more cost-effective than buying the cheapest car in South Africa in 2024\u2014the Suzuki S-Presso.<\/p>\n\n\n\n
In 2024, more than 70% of all the cars in South Africa now cost more than R500,000.<\/p>\n\n\n\n
One key reason for this spike was the Covid-19 pandemic, which saw car factories around the world shut down and lay off workers when lockdown restrictions were enforced, and the demand for cars dropped.<\/p>\n\n\n\n
After the easing of restrictions, consumer spending quickly rebounded, while production was slower to return to pre-Covid levels. This created a supply-and-demand problem, leading to inflation.<\/p>\n\n\n\n
In South Africa, the poor performance of the local economy and the rand\/US dollar exchange rate have magnified this effect, making it exponentially more expensive to import and sell vehicles here.<\/p>\n\n\n\n
According to Tracker, this means the tipping point for South Africans to choose between vehicle ownership and ride-hailing now depends on financial affordability, lifestyle preferences, and evolving urban dynamics. <\/p>\n\n\n\n
The car-tracking firm said that despite the appeal of ride-hailing services, many young adults and first-time buyers still see car ownership as a symbol of independence and mobility. <\/p>\n\n\n\n
However, car prices and economic constraints, combined with factors such as student debt and job market uncertainty, may delay or prevent them from realising this aspiration.<\/p>\n\n\n\n
The table below compares the monthly travelling costs of a Suzuki S-Presso versus taking an Uber, as outlined by the tracker.<\/p>\n\n\n\n The total cost of owning a car was calculated based on a vehicle price of R175,000. The car was financed over 72 months at 13% interest with a 10% residual value. <\/p>\n\n\n\n The total cost includes petrol, maintenance, insurance at a rate of R4.84\/km, and other miscellaneous expenses such as R200 for parking and R139 for tracking fees. <\/p>\n\n\n\n Additionally, Uber rates for different service levels (including “Go” and “Comfort”) were recorded to show the potential charges for Joburg commuters during work hours.<\/p>\n\n\n\n Based on these calculations, using ride-hailing services can be cost-effective if you travel around 1,400km per month. <\/strong><\/p>\n\n\n\n However, beyond this distance, it may be more economical to own your own car. <\/p>\n\n\n\n If you’re considering purchasing a vehicle that is more expensive than the cheapest option available, Uber could still be the more affordable choice, even if you travel well over 1,000km every month.<\/p>\n\n\n\n Tracker points out that when the finance contract expires, as long as you have been making your payments diligently, you will have a fully paid-off car. <\/p>\n\n\n\n At that point, you will only need to cover the running costs, and you won’t have this type of reward if you choose to drive for Uber instead. <\/p>\n\n\n\n On the other hand, due to the depreciation of vehicles, the company suggests that if you were to save the difference between owning a car and using e-hailing each month and invest it in an interest-bearing account, you could end up with a more substantial financial asset after several years than if you had an old vehicle.<\/p>\n\n\n\nDistance Travelled<\/th> Car Owner<\/th> Uber Go<\/th> Uber X<\/th> Uber Comfort<\/th><\/tr><\/thead> 600km\/month<\/strong>
(20km\/workday + 20km\/weekend day<\/strong><\/td>R6 688<\/td> R4 740<\/td> R5 640<\/td> R6 300<\/td><\/tr> 1020km\/month<\/strong>
40km\/workday + 20km\/weekend day<\/strong><\/td>R8 721<\/td> R7 092<\/td> R8 706<\/td> R9 660<\/td><\/tr> 1440km\/month<\/strong>
60km\/workday + 20km\/weekend day<\/strong><\/td>R10 753<\/td> R9 738<\/td> R12 108<\/td> R14 406<\/td><\/tr><\/tbody><\/table><\/div><\/figure>\n\n\n\n
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