The salary you need to afford the new MG3 in South Africa

You will need to earn at least R30,000 per month to afford the new MG3 if you opt for a finance plan, according to a calculation by TopAuto.

The Chinese carmaker recently launched the new MG3 hatchback in South Africa, which is available in four specifications with prices ranging from R269,900 to R469,900.

The base Comfort and mid-range Luxury units run on a 1.5-litre petrol engine producing 81kW and 142Nm, which is sent down to the front wheels.

This can be paired with a five-speed manual or a continuously variable transmission (CVT), though either choice results in an average fuel consumption of 6.0l/100km.

Alternatively, you can buy the range-topping Hybrid+ Luxury, which combines the engine with an electric motor powered by a 1.83kWh battery.

The electrical assistance means the hybrid generates a substantial 155kW and 425Nm while consuming less fuel at 4.3l/100km.

Standard equipment on the Comfort includes 16-inch alloy wheels, light-sensing halogen headlights, LED daytime running lights, electric side mirrors, push-button start, four-way manually adjustable front seats, fabric upholstery, a multifunction steering wheel, automatic air conditioning, four speakers, a 7-inch digital driver display, and a 10.25-inch infotainment screen with Apple CarPlay and Android Auto.

It also comes with tyre pressure monitoring, electronic stability control, traction control, ABS, hill assist, rear parking sensors, a rearview camera with guidelines, ISOFIX child seat anchors, and four airbags.

The automatic version also has cruise control.

If you opt for the Luxury trim, you can expect LED headlights, heated auto-folding side mirrors, rain-sensing wipers, keyless entry, a microfibre leather steering wheel, six speakers, a six-way manual driver’s seat, PVC and fabric seat covers, seatback pockets, rear aircon vents, adaptive cruise control, forward collision warning, lane-keep assist, traffic jam assist, and a 360-degree camera.

The hybrid has a few more exclusive items, such as a tyre repair kit, onboard navigation, blind spot monitors, lane-change assist, rear cross-traffic alert, automatic emergency braking, and an electric hand brake.

Each purchase includes a 5-year/150,000km warranty and a 3-year/45,000km service plan.

What you need to earn

We can use the following formula to work out the monthly payments on the new MG:

• Car price – R269,900/R469,900
• Payment term – 60 terms (5 years)
• Interest – 10.50%
• Deposit – 0%
• Balloon – No balloon payment
• Extras – No optional extras

According to this, you’ll need to pay at least R5,896 per month for the Comfort, and up to R10,195 per month for the Hybrid+ Luxury.

Financial experts then recommend that you do not spend more than 20% of your gross monthly salary on vehicle payments.

This means you’ll need to earn between from R29,480 per month to R50,975 per month to afford the new hatchback on a finance plan.

Note that this figure does not account for insurance, fuel, and maintenance, which must all be factored into your budget.