The salary you need to afford South Africa’s cheapest new car

You will need to earn at least R20,000 per month to afford a new car in South Africa in 2026, if you decide to buy it with a finance plan.

The cheapest vehicle in the country right now is the Renault Kwid, which asks for a minimum of R178,799, though prices can climb as high as R222,999 for the top-spec model.

The range is currently split across four trim levels – Evolution, Techno, Anniversary Edition, and the Climber.

In all cases, the small hatchback is fitted with a 1.0-litre naturally aspirated petrol engine with 50kW and 91Nm.

This can either be paired with a five-speed manual or a five-speed automated manual transmission (AMT), resulting in a frugal fuel consumption of just 4.9l/100km.

As for the equipment you can expect from South Africa’s entry-level car, the Kwid comes standard with LED daytime running lights, LED taillights, and 14-inch steel wheels.

It also has central locking, a multi-information driver display, manual air conditioning, cloth seats, electric windows, rear parking sensors, two airbags, and an 8-inch infotainment screen with Apple CarPlay and Android Auto.

The higher trim levels will then add electric side mirrors, front fog lamps, roof rails, a rearview camera, and up to six airbags.

The Anniversary Edition and Climber also have unique cosmetic details, including bespoke badges and two-tone seats.

Each purchase comes with a 5-year/150,000km warranty, and a 2-year/30,000km service plan.

What you need to earn

We can use the following formula to work out the monthly payments for South Africa’s cheapest new car:

• Car price – R178,799/R222,999
• Payment term – 60 months (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 R3,938 per month for the Evolution, and up to R4,888 per month for the Climber Auto.

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

In other words, South Africans need to earn at least R19,690 per month to purchase a new vehicle on a finance plan in 2026, or up to R24,440 per month if they want the same car with all the bells and whistles.

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