The average monthly repayment agreed to by buyers when financing their vehicle purchase has grown significantly in South Africa over the last six years, and more so among used vehicle buyers than their new vehicle counterparts.

Over the same period, CPI has risen by around 35%, providing important context for understanding how repayment growth compares with broader inflation pressures.

An analysis of data gleaned from Lightstone's transactional systems also provided interesting insights on the average loan amounts entered into when Passenger and Light Commercial Vehicles were purchased.

Lightstone's study was conducted on the actual agreed loan amount at the start of the repayment window and did not consider the overall average repayment across the country in any given month.

In January 2019, the average repayment amount agreed to by vehicle buyers was R6 890 per month for new vehicles, and R4 660 per month for used vehicles. By November 2025, the equivalent amounts were R9 080 per month for new vehicle purchases, and R6 980 per month for used vehicles.


Average monthly instalment for financed vehicle purchases - new vs used



This represents approximately a 30% increase in the agreed repayment amount for new vehicle loans, at an average annual increase of about 5%. Interestingly most of this growth occurred around 2023, when monthly repayments at initiation jumped by almost 20% on average from 2022. Average repayments declined in 2024 and 2025.

Remarkably, despite lower monthly repayments over the past two years, the average loan amount for new vehicle buyers increased from R355 000 in 2019 to R470 000 in 2025. This was most likely due to the shift to longer-term financing periods.

For used vehicles, the initial repayment amount has increased by almost 50% since 2019. But, unlike new vehicles, this growth has been on an upward trajectory year after year. The loan amount agreed to by those choosing to finance their pre-loved purchase climbed from an average of R235 000 in 2019 to R345 000 in 2025.


Average loan amount for financed vehicle purchases - new vs used



The gap between monthly repayments for new and used vehicles has, however, narrowed. In 2019, the ratio of used to new vehicles was 1:1.52, meaning that for every R1 spent financing a used vehicle in an initial loan agreement, R1.52 was spent financing a new one. By 2025, that ratio had tightened to 1:1.35.


Monthly repayment ratios - used and new