The salary you need to afford Tata’s new crossover in South Africa

You will need to earn at least R26,000 per month to afford the new Tata Punch on a finance plan, according to a calculation by TopAuto.

The Punch is a small crossover that starts at R244,900, making it one of the most affordable compact SUVs in the country.

It is available in five specifications, all of which are powered by a 1.2-litre naturally aspirated petrol engine with 65kW and 115Nm.

This can be paired with either a five-speed manual or automated manual transmission, and fuel consumption works out to an average of 5.3l/100km.

The base Adventure model comes with 15-inch steel wheels, a multifunction steering wheel, fabric seats, a height-adjustable driver’s seat, manual air conditioning with rear vents, four speakers, a 4-inch digital instrument cluster, and a 7-inch infotainment screen.

It also has ABS, dual airbags, electronic stability control, ISOFIX child seat anchors, rear parking sensors, and a rearview camera.

The mid-range Adventure+ S units will add automatic headlights, rain-sensing wipers, a shark fin antenna, roof rails, a sunroof, keyless entry and start, a front armrest, USB Type A and Type C ports, wired Apple CarPlay and Android Auto, two more speakers, and What3Words onboard navigation.

If you want all the bells and whistles, you’ll need to get the Creative +, which throws in 16-inch alloy rims, LED daytime running lights, a larger 10.5-inch floating touchscreen, wireless Apple CarPlay and Android Auto connectivity, automatic climate control, cruise control, a rear armrest, rear USB ports, a wireless charging pad, and a cooled glovebox.

Each purchase includes a 5-year/125,000km 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 Tata:

• Car price – R244,900/R339,900
• 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 R5,359 per month for the Adventure, and up to R7,401 per month for the Creative.

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 anywhere from R26,795 per month to R35,205 per month to afford the new Punch on a finance plan.

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