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With consistent fluctuations in South Africa’s automotive industry, it comes to no surprise that car owners will have to add additional fees to their cost of owning a car, on their 2018 new year’s resolution.

The Government Gazette has revealed Transport Minister Joe Maswanganyi’s proposed R30 increase in the country’s vehicle license transaction fee, which will be paid to the Road Traffic Management Corporation.

Here are the facts for the implementation of SA’s new vehicle license fees:

  • Vehicle license transaction fee increase amount – R30
  • Total vehicle renewal fees – R72
  • Effective date – 1st of February 2018

That is approximately a radical 71.43% increase in vehicle license transaction fees, compared to the minute 16.67% increase in 2016 by former Transport Minister Dipuo Peters.

607596f99a4aa309c976935ede125f5cea5c4e58 vehicle license increase

But, the highly debated proposition doesn’t end there… ‘Junk status’ is no longer an excuse!

The Justice Project of South Africa (JPSA) has questioned the Road Traffic Management Corporation’s lack of ability to follow through with 2 mandatory road traffic acts:

  1. “Enhancing road safety”
  2. “Reducing the catastrophically high carnage which exists on South Africa’s roads”

It’s no wonder the JPSA has called on the country’s Transport Minister to justify his tremendous vehicle license transaction fee increase.

The current reported inflation rate in South Africa is 4.8% as at August 2017 and therefore, the latest published transaction fee exceeds the current inflation rate by almost fifteen times.

Click below to read the full response of the Justice Project of South Africa to the:

71% increase in vehicle licensing transaction fees

Did you know?

Although vehicle license renewals occur every 5-years, your car depreciates as soon as it touches the road. This means by the time your car’s 5-year period hits, the value of your secondhand car could have depreciated by up to 50%.

Fluctuations in government fees and car depreciation are making a steadfast hit on the cost of owning a car, which include service and maintenance fees, fluctuating fuel prices, mechanical or cosmetic repairs, expensive vehicle insurance and service plans.

Why burn holes in your pocket now and not get any value out of it in a couple of years time?

  • On www.carzar.co.za you can find out the value of your car in just seconds for free.
  • If you’re happy with your online quote, you can book an independent professional inspection at any available DEKRA or Kwikfit inspection centre.
  • If you’re unhappy with your online quote or with your offer at the inspection, we’ll give you the opportunity to advertise your vehicle to our nationwide network of dealers to allow you to receive the best price the market is willing to pay and possibly match your asking price – something you will not get when you trade in car.

Sell second hand car with a guaranteed final cash offer. Our services are 100% obligation-free, so you won’t lose out on anything during your car evaluation.