Finance vs Subscription Comparison — South Africa
Compare Drive data againts buying a vehicle.
Last updated: May 2026
Vehicle Class
Selecting a class pre-fills subscription and purchase price. All fields are editable.
Subscription Side
Excess km over 1,500/month are billed at R4.00/km.
Finance / Buy Side
SA average: 15%/yr for most vehicles. Used to estimate resale value and net equity at term end.
Finance is cheaper over the full term
Financing is cheaper over the full term by R9 085 once resale value is factored in. You also build R 168 608 in net equity.
Subscription
R 7 500/mo
All-in monthly cost
Finance / Buy
R 9 525/mo
Instalment + insurance + maintenance
Key Metrics
Monthly cost difference
R 2 025
Subscription saves per month
Total difference (net equity)
R 9 085
Finance is cheaper overall
Finance net equity
R 168 608
Resale minus balloon at term end
Things to Consider
- Subscriptions typically include maintenance and tyres — your actual finance maintenance cost may be higher than modelled.
- Ownership builds equity and gives you flexibility to sell or trade at any time. A subscription gives you flexibility to switch vehicles more easily.
- Depreciation is an estimate — actual resale depends on make, model, mileage, and condition. Adjust the depreciation rate to model best and worst cases.
Figures are illustrative. Actual subscription pricing, interest rates, insurance, and resale values will vary. Not financial advice.
Compares the total cost of financing (or buying) a vehicle against a vehicle subscription — factoring in insurance, maintenance, depreciation, resale value, and balloon payments.
Key inputs explained
- Vehicle class
- Pick the class closest to what you'd consider — presets auto-fill typical SA market prices and subscription costs.
- Monthly km
- Subscriptions include a km allowance; excess km is charged per km. Heavy drivers often find finance cheaper.
- Annual depreciation
- New cars lose 15–25% of value in year one, then 10–15% per year. This determines your net equity at term end.
Subscription removes depreciation risk — if the vehicle's value drops faster than expected, that's the provider's problem. But financing builds equity: at the end of the term you own an asset worth something.
Frequently Asked Questions
A vehicle subscription gives you access to a vehicle for a fixed monthly fee that typically covers insurance, maintenance, tyres, and roadside assistance — with a set monthly kilometre allowance. Traditional finance means you borrow money to own the car: you pay for insurance, maintenance, and repairs separately and build equity (or carry balloon risk) over time.
Subscription contracts charge an excess kilometre rate for every km above your monthly allowance — typically R3–R5 per km. If you drive 2,000 km/month on a 1,500 km contract at R4/km, you pay an extra R2,000/month. Factor your realistic monthly km into the comparison — high-mileage drivers can find excess km charges make subscriptions expensive.
Yes — significantly. When you finance a vehicle, you bear the full depreciation risk. A new car loses roughly 15%–20% of its value in the first year, and 10%–15% per year thereafter. In a subscription, the provider bears the depreciation risk. This is a key hidden advantage of subscriptions for vehicles that depreciate quickly (new luxury or EV models).
Advertisement