In a world where new cars come with glossy touchscreens, advanced driver-assist tech, and hefty price tags, it might seem like upgrading every few years is the smart choice. But in South Africa’s 2025 economy – where vehicle finance costs, insurance premiums, and maintenance expenses are weighing heavily – there is a strong case to be made for holding onto your older car. 

Here is why keeping your “old faithful” on the road might just be the financially savvy move this year. We trust that this information will help you make an informed decision about your next purchasing choice. 

New Car Costs Are Climbing 

The average price of a new entry-level car in South Africa now sits north of R250,000, while family SUVs easily exceed R500,000. When you factor in the rising interest rates on car finance, and the monthly repayment on a new car can become a serious burden. 

By contrast, if you have already paid off your older car, your only major expenses are fuel, maintenance, and insurance. That frees up thousands of rands each month for savings, investments, or household needs. So, whether it’s looking at older secondhand options or the older set of wheels you already own, we would urge you to seriously think about if a brand-new vehicle is the right choice for you. 

Reliability Has Improved 

It used to be that a car with 150,000 km on the clock was considered to be “on its last legs.” However, advances in manufacturing mean that modern cars are built to last much longer. With proper servicing, it is not unusual for vehicles today to pass 300,000 km before they start to show signs of slowing down. 

Our verdict? If your car is mechanically sound, keeping it may be far more cost-effective than taking on a new finance agreement. 

Lower Insurance And Registration Costs 

Older vehicles typically cost less to insure because their replacement value is lower. Similarly, annual licensing fees are lower for smaller, older vehicles than for newer, higher-powered models. 

That’s a double saving: cheaper cover and cheaper running costs. 

The Tech Trade-Off 

Of course, older cars don’t always come with the latest safety tech, such as lane-keeping assistance or adaptive cruise control. Fuel efficiency may also be less competitive compared to newer hybrid or electric vehicles. 

But this is where balance comes in. If your car is safe, reliable, and affordable to run, the missing bells and whistles may not be worth the financial strain of upgrading. 

Maintenance: The Real Deciding Factor 

The one area where older cars can catch owners off guard is maintenance. Repairs on high-mileage vehicles can add up, especially if you’ve skipped services or ignored warning signs. 

The key is to: 

• Stick to your service schedule. 

• Use reputable mechanics. 

• Replace critical wear-and-tear parts (like brakes and tyres) before they become safety hazards. 

A well-maintained older car can remain reliable for years – but neglect it and the costs could rival those of a new vehicle instalment. 

A Greener Perspective 

It is also worth noting that keeping an older car around for longer has an environmental benefit. There is no escaping the fact that manufacturing new cars generates significant carbon emissions, so extending the lifespan of existing vehicles is, in many ways, a more sustainable choice. 

Feeling Informed? 

Owning an older car in 2025 isn’t about “making do” – it’s about financial wisdom. Opting for a new vehicle can mean incurring hefty car repayments and high insurance premiums, which are savings that you can redirect to where it really counts. If your vehicle is reliable, safe, and suits your lifestyle, then resisting the pressure to upgrade might just be the smartest move you can make this year. 

Don’t forget that you have access to ten leading car insurance quotes through the AA Insurance Supermarket. Through these ten insurers, you have the power to select a competitive car policy that suits your needs based on price, benefits, and personal preference.