The average gross take-home pay in South Africa in October 2021 was R15,042, which is a 3.1% decline when compared to the same time last year.
This is according to data from BankservAfrica – as reported on by BusinessTech.
Financial experts recommend that car buyers and owners do not spend more than 20% of their gross salary – their salary before deductions – on a car payment.
Taking the average local salary into account, this gives South Africans a car budget R3,008 per month when using a vehicle finance plan.
To calculate the vehicle you can afford on this monthly instalment, we can use the formula below.
- Monthly instalment – R3,008
- Payment Term – 60 terms (5 years)
- Interest – 9%
- Deposit – 10%
- Balloon – No balloon payment
- Extras – No optional extras
This works out to a vehicle buying price of R156,000.
Unfortunately, if you’re looking to buy a new car, this budget leaves very little room for choice – as there are only three new vehicles that can be bought at this price in South Africa.
While the second-hand segment can present a few bargains, it has also experienced a rise in prices over the last 18 months.
We take a look at what can be had in both these markets for a monthly instalment of under R3,008.
New
BAIC D20 Hatch 1.3 Comfort
- Price – R149,990
- Power – 75kW/128Nm
- Warranty – 5-year/120,000km warranty and 5-year/unlimited kilometre roadside assistance.
Suzuki S-Presso 1.0 GL
- Price – R152,900
- Power – 50kW/90Nm
- Warranty – 5-year/200,000km warranty and a 2-year/30,000km service plan.
Suzuki Celerio 1.0 GA
- Price – R153,900
- Power – 50kW/90Nm
- Warranty – 5-year/200,000km warranty and a model-dependent 2-year/30,000km service plan.
Used
2017 GWM Steed 5 2.2 MPI Double Cab
- Price – R154,995
- Power – 73kW/180Nm
- Mileage – 36,423km
2019 Kia Picanto 1.0 Start
- Price – R154,995
- Power – 49kW/95Nm
- Mileage – 31,200km
2017 Renault Sandero Stepway 66kW Turbo
- Price – R155,990
- Power – 66kW/135Nm
- Mileage – 87,000km
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