Revved Up By Itu Motuba
A few years ago, after my car suffered a major breakdown, I found myself without one for a while. A friend asked why I did not simply lease a car in the meantime. The thought had never crossed my mind. Apart from the occasional rental on holiday or a business trip, the idea of a long-term lease felt completely foreign. It made me wonder whether I was the only one who had missed this new way of getting behind the wheel.
South Africans like to own things. We own houses, furniture and braai stands that have seen better days but are absolutely not going anywhere. When it comes to cars, we are especially attached to ownership. There is something deeply satisfying about saying, ‘This is my car. ’For years, leasing a car seemed strange to many South Africans. Why make monthly payments only to return the vehicle at the end of the agreement? Surely the point of paying for a car is that it eventually becomes yours?
But attitudes are changing. As the cost of living rises and the prices of new cars make many of us stare through dealership windows as though we are admiring luxury handbags, more people are asking whether ownership is always the smartest financial choice. Suddenly, leasing does not sound quite as unusual as it once did. So, which option is better? It depends on the kind of driver you are.
The Case For Buying
Let us start with the traditional South African approach. You find the car you want, negotiate the price, sign what feels like 47 pages of paperwork and commit a significant portion of your salary to it for the next few years. Eventually, however, you own it, and that remains the biggest attraction. Once the finance is settled, the monthly instalment disappears and the car is yours to keep, sell or modify. You can drive it for ten years, trade it in when you are ready or fit ridiculous rims because you have suddenly decided you are a Formula One driver. Nobody can stop you.
Buying also gives you freedom over mileage. If your job requires long-distance travel, or you enjoy disappearing down the open road whenever the opportunity arises, you do not have to worry about exceeding an agreed allowance. There is also real financial comfort in finally being able to say, ‘I do not have a car payment anymore.’ That moment deserves a celebration.
Ownership does, of course, have its disadvantages. Cars depreciate, sometimes painfully. The beautiful new vehicle that once seemed like the best decision of your life can lose a significant portion of its value over time. As it gets older, maintenance and repairs also become your responsibility, and every dashboard warning light begins to
Then there is leasing
Leasing works differently. Instead of buying the vehicle, you pay to use it for an agreed period, subject to the terms of the contract. At the end of that period, you generally return the car or follow the end-of-lease arrangement set out in your agreement. This is usually where many South Africans pause: ‘You mean I pay every month and then give the car back?’ Yes. That is essentially the point, but it is worth understanding the benefits before dismissing the idea.
For someone who enjoys driving newer vehicles, leasing can provide access to a car without the same long-term commitment that comes with ownership. Depending on the agreement, maintenance and certain other costs may be included in the monthly payment, making expenses easier to predict. There is also something appealing about not having to drive the same car into its teenage years while it develops a collection of mysterious noises.
However, leasing comes with conditions. Mileage limits may apply, excess wear and tear can attract additional charges, and making every monthly payment does not mean you own the car at the end. That last point is probably the biggest psychological hurdle for South Africans because we are accustomed to thinking, ‘If I am paying for it, I want to own it.’ Leasing requires a different mindset.
So, who wins?
Annoyingly, there is no universal winner. If you keep a car until it has practically become part of the family, drive many kilometres and want the freedom to retain it after the finance is settled, buying may make more sense. If you prefer newer vehicles, value more predictable costs and would rather not deal with selling or trading in an ageing car, leasing may be worth exploring.
Whichever route you consider, do not judge the deal by the monthly payment alone. A lower instalment does not automatically make an agreement better. Compare the total cost, including the deposit, interest or finance charges, maintenance, insurance, mileage restrictions, additional fees and what happens at the end of the contract. A shiny advertisement may promise an irresistible monthly payment, but the small print has teeth.
Perhaps the biggest change is not the cars, but us. The ways we work and travel are evolving, while the cost of living continues to rise. Buying a brand-new car, keeping it for years and eventually trading it in will not suit every driver. For some people, ownership will always be the preferred choice. For others, leasing may offer access to a vehicle without the traditional commitment. Choosing to lease does not mean you have somehow failed the South African ownership test. It simply means you have chosen a different arrangement.
The most important question is not whether buying or leasing is better. It is which option makes the most sense for your lifestyle, driving habits and budget. After all, the best car is not necessarily the one in your driveway with your name on the registration papers. It is the one you can comfortably afford to drive. If you can manage that without surviving on two-minute noodles for the next five years, I would call it a win.
