SOUTH AFRICA, Johannesburg, 10 September 2026: Vehicle buyers are increasingly looking beyond the showroom price and monthly instalment to understand the full cost of owning a vehicle, according to Brandon Cohen, Chairperson of the National Automobile Dealers’ Association (NADA).
Speaking at the recent Automechanika CEO Breakfast at the Festival of Motoring, Cohen said this changing consumer behaviour means dealerships no longer compete on price alone.
“Price remains the starting point for most vehicle buyers, particularly while South African households are under significant financial pressure. However, the vehicle with the lowest purchase price may not necessarily be the one that will prove most affordable over the full ownership period,” Cohen says.
South Africa’s new-vehicle market has remained resilient despite constrained household finances, with the industry on track to sell more than 600 000 vehicles this year. The arrival of new automotive brands has also given consumers access to an increasingly diverse selection of competitively priced and well-specced vehicles.
However, Cohen says the performance of different vehicles and brands demonstrates that price and features are not the only factors influencing purchasing decisions.
“Consumers are becoming more considered in their buying habits. They are increasingly asking what a vehicle will cost to finance, fuel, insure, service and maintain, as well as what support will be available throughout the ownership period and what the vehicle may be worth when they sell or trade it in,” he says.
Fuel efficiency has become particularly important following substantial increases at the pumps. Insurance premiums, tracking-device requirements and the costs attached to longer vehicle-finance periods can also have a significant effect on affordability.
South Africans are also keeping their vehicles for longer, making servicing costs, parts availability, maintenance plans and warranty extensions increasingly relevant.
“A manageable monthly instalment does not necessarily mean that a vehicle is affordable. Fuel, insurance, maintenance and other expenses should also be considered before a customer commits to the purchase,” Cohen says.
The way consumers research vehicles is also changing. Buyers have moved beyond conventional online searches and are beginning to use artificial intelligence (AI) tools to compare models, specifications and likely ownership costs.
While these tools contribute to a better-informed consumer, Cohen believes they make the dealership’s advisory role even more important, rather than less relevant.
“Technology can provide information, but it cannot replace the experience of sitting in a vehicle, driving it, asking detailed questions and discussing your individual circumstances with someone who understands the product and the realities of ownership,” he says.
“People ultimately buy from people. A vehicle is a significant financial commitment, but it is also a highly personal and often emotional purchase. The physical dealership allows customers to experience the vehicle, compare options and build a relationship with the people who will support them after the sale.”
This ongoing relationship becomes particularly important when customers require servicing, maintenance, warranty assistance, parts or advice during the ownership period. The dealership is not simply the place where the transaction takes place, but an important point of support throughout the vehicle’s lifecycle.
Every customer’s financial position, travel requirements and intended ownership period are different. While digital tools can help buyers gather information, a knowledgeable dealer can help them interpret the information and locate the vehicle, arrange finance and package a deal best suited to their circumstances.
“Dealers don’t compete on price alone. In a market with more brands, products and technologies than ever before, the quality of the physical dealership experience, supported by transparency, expertise and trusted human advice, will be a critical differentiator,” Cohen says.
“The responsibility of a dealership is not simply to determine whether a customer can afford to buy a vehicle today. It is to remain available to support them throughout the ownership journey.
NADA is a proud association of the Retail Motor Industry Organisation (RMI).
