The salary you need to afford the cheapest and most expensive cars in South Africa

You will need to earn anywhere from R20,000 per month up to a staggering R1,450,000 per month in order to afford the cheapest and most expensive cars in South Africa, if you were to hypothetically buy either one on a finance plan. 

South Africa’s car market is incredibly diverse with models that come in all shapes, sizes, and price brackets, ranging from entry-level hatchbacks to family crossovers, 4×4 SUVs, double-cab bakkies, luxury sedans, and ultra-exclusive supercars.

The local entry point to the world of motoring is the Renault Kwid, which is officially the cheapest car in South Africa following a price cut in October.

The Kwid starts at R178,799, which is slightly more affordable than something like the Ferrari 849 Testarossa Spider, which asks for a mere R13,550,000.

The Ferrari is the most expensive car with an official price tag in South Africa, bearing in mind that companies like Rolls-Royce often list their vehicles as “price on request.”

To put it another way: if you have to ask, you can’t afford it.

Of course, the Spider’s price tag is sure to be even greater than advertised, given that such a prestigious car will undoubtedly come with thousands of rands in optional extras – something Ferrari actively encourages to ensure that every model it sells is unique.

To give a brief comparison of what each car has to offer, the wallet-friendly Kwid comes with a 1.0-litre naturally aspirated petrol engine with 50kW and 91Nm.

This is sent to the front wheels via a five-speed manual gearbox, resulting in a frugal fuel consumption of 4.9l/100km.

In contrast, our Italian entry features a 4.0-litre twin-turbo V8 block with no less than three electric motors.

The result is a staggering combined output of 772kW and 842Nm, letting the car sprint from 0 to 100km/h in a blistering 2.3 seconds.

It can also reach top speeds over 330km/h.

The Ferrari uses an all-wheel-drive system, and gear changes are handled by an eight-speed F1 dual-clutch automatic transmission.

Naturally, the spec sheet for each car has different selling points, as the French hatchback boasts things like 14-inch steel wheels, electric windows, cloth seats, and an 8-inch infotainment screen with Apple CarPlay and Android Auto.

Anyone lucky enough to buy the Ferrari can expect nice-to-haves such as 20-inch carbon fibre wheels, a flat-bottom Sport steering wheel with paddle shifters, aluminum pedals, Daytona Racing seats with heating and ventilation, custom seat stitching, a digital driver display, adaptive cruise control, a surround-view camera system, and a hardtop folding roof.

What you need to earn

Putting aside the fact that anyone with Ferrari money will certainly not be relying on a finance plan, we can use the following formula to work out the hypothetical monthly payments on both cars:

• Car price – R178,799/R13,550,000
• Payment term – 60 terms (5 years)
• Interest – 10.25%
• Deposit – 0%
• Balloon – No balloon payment
• Extras – No optional extras

Based on this, you’ll need to pay at least R3,916 per month for the Kwid, or a incredible R289,662 per month for the Spider.

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

For the Renault, this means you should earn around R19,580 per month, but anyone with aspirations of owning a Ferrari would technically need to R1,448,310 per month if they were to use a finance plan.

As a side note, if you were to purchase the Testarossa in this manner, you would incur an additional R3,828,505 in interest.