VAT, my car!

As we all know, on the 1st of April 2018 the VAT increased to 15%, and on the 4th of April 2018 the new fuel levy kicked in. But what does this tax increase really mean, especially with regard to your car? And you know you must pay more attention to your habits, but which and how?


As Netstar is your trusted partner, we want to explain a few things to help put your heart at ease and your mind in drive (on how to compensate for this tax increase).


1. Insurance

Not only will your monthly premiums be affected by VAT but also by the price increase of car parts (which will be affected by VAT, the fuel increase and import tax). In addition, your excess will also increase. So make sure you check and read your policy statements.


One way for you to counter this increase is by installing a tracking device. Insurance companies see a tracking device as lowering your risk of theft. You’ll also have the bonus of enjoying peace of mind knowing that if someone tries to take what’s yours; we’ll be out there trying to get it back.


2. Fuel

In the budget speech, it was also announced that the fuel levy will increase. On 4 April 2018, 95 octane petrol went up by 72 cents, 93 octane petrol by 69 cents, and diesel by 65.2 cents.


The way to counter or adapt to this is to pay more attention to how you drive; for example, sticking to the speed limit. You can also use the Safe and Sound app to monitor your driving and make improvements to save fuel based on your findings.


3. Tyres

Tyre prices will also be affected by all three major increases – VAT, fuel and, depending on what you need, import tax.


How do you compensate? For one, don’t buy the biggest, baddest tyres you can find. They might make your vehicle look better, but in the long run, they’re not an economically-wise choice. For another, take better care of your tyres so they’ll last longer – drive less aggressively, remember to rotate them, and regularly check the pressure and alignment.


4. Maintenance

Unfortunately, this is unavoidable. Not only will the service costs increase, but so will the car parts you need. Even more so if the parts need to be imported. You can compensate for this by keeping your car in good condition; waiting for something to break before you take it in for a service is never a good idea. Not only are you decreasing the resell value of your car, as you’ve missed services, but you’ll also end up paying a very unexpected and very expensive service. So, make sure you have your vehicle serviced regularly, but be clever about it. 


5. Wash

This is a no-brainer – having your car washed will now cost you more, especially if you live in a drought-stricken area, where water prices’ have been increased. ‘

Although car wash centres have high-pressure hoses so they can use less water, the more affordable option will be to wash your car yourself. Remember to do so correctly, or you might end up wasting water.


6. Repayments

Depending on where your vehicle is financed, you can expect your monthly payments to increase. Read your statement attentively and if there is anything that you’re unclear about or that doesn’t look right, contact your financial service provider and clear the matter up immediately.

Bearing this in mind, you can trade in your vehicle for a more affordable model, but know that by taking proper care of your vehicle you will be retaining its value so making it more affordable in the long run.


Although increasing your monthly Safe and Sound subscription fee is unavoidable, we are developing our products to enhance your benefits. For instance, our Safe and Sound Early Warning and Safe and Sound Early Warning Plus subscriptions come with a remote panic button, impact detection, Jamming Resist, provides you with driver behaviour reports and so much more.


Speak to us today about how you can benefit from a Safe and Sound subscription. Call 0860 12 24 36 or visit