The salary you need to afford the new VW Golf GTI in South Africa

Should you be in the market for the new VW Golf 8.5 GTI, you will need to earn at least R97,000 per month to afford it on a finance plan, according to a calculation by TopAuto.

Following its temporary delay, South Africa’s favourite performance hatchback is officially on sale locally.

While VW has doubts over its introduction due to poor local fuel quality, the latest Golf GTI has landed on our shores with a price tag of R908,000.

This price includes all relevant taxes, a 3-year/120,000km warranty and a 5-year/90,000km service plan.

Included in the price is more than a mid-generation facelift, with VW making sure to add 15kW more power in the latest version, as well as an all-new look.

The German automaker has managed to crank the 2.0-litre TSI motor up to 195kW and 270Nm, which, coupled with a seven-speed DSG transmission, allows it to reach 100km/h in under six seconds and reach 250km/h.

Built on a MacPherson front axle and a four-link rear axle, the latest GTI offers an individual ESC control system for racing conditions, as well as a special 17-inch brake system for superior braking performance.

A completely overhauled exterior features LED Plus headlights, brand-new rear lights, a horizontal LED strip in the grille which includes the iconic GTI red line, and an illuminated “VW” logo – as seen in other VW models.

Completing the look is an exclusively designed and developed set of 19-inch Queenstown alloy wheels.

Inside, VW fitted the performance hatch with premium Vienna leather sport seats, integrated head restraints, and decorative red stitching on the seats, armrest, floor mats and multifunction steering wheel.

The automaker also completely redesigned both the hardware and software of the Golf GTI’s infotainment system.

What you need to earn

The following formula can be used to work out the monthly repayments on a VW Golf GTI:

• Car price – R908,000
• Payment term – 60 terms (5 years)
• Interest – 10.25%
• Deposit – 0%
• Balloon – No balloon payment
• Extras – No optional extras

If you consider this calculation, you will need to pay at least R19,499 per month for the brand new VW Golf 8.5 GTI.

With financial experts recommending that buyers do not spend more than 20% of their gross monthly salary on vehicle payments, you will need to earn at least R97,500 per month to afford it on a finance plan.

With that in mind, the calculation does not account for the additional vehicle ownership expenses, including insurance and maintenance costs, as well as fuel and other running costs, which all need to be considered.