The salary you need to afford the cheapest car built in South Africa

Any South African looking to buy the Polo Vivo right now will need to earn more than R29,000 per month to afford the hatchback on a finance agreement, according to a calculation by TopAuto.

The German hatch is built at VW’s Kariega production plant in the Eastern Cape – alongside every other Polo sold worldwide – and is the cheapest locally-built passenger vehicle in our market.

VW offers the Vivo in eight distinct guises, with three powertrains, and a starting price of R271,900, all the way up to R363,300 for the GT variant.

In its base trim, the Vivo is fitted with daytime running lights, 14-inch steel rims, and a frugal naturally aspirated 1.4-litre petrol engine unique to this model.

This motor produces 55kW and 130Nm and is mated to a five-speed manual gearbox, combining for a reported average fuel consumption of 5.5l/100km and a top speed of 171km/h.

Inside the cabin, buyers can expect to find a multifunction steering wheel, manual aircon, cloth seats, a 9.0-inch infotainment system with Apple CarPlay and Android Auto, four speakers, front electric windows, and two airbags.

Upgrading to the flagship GT gets you a 1.0-litre turbo-petrol motor mated to a six-speed manual gearbox, boosting its performance to 81kW and 200Nm.

This configuration results in a top speed of 196km/h, and gives the sporty hatch an average fuel consumption of 4.8l/100km, making it the most efficient Vivo on the market.

The GT features an exclusive Wild Cherry Red paint scheme, 17-inch silver alloy wheels, silver body panel highlights, a chrome exhaust, black boot spoilers, and GT badging.

Inside, the GT is fitted with sports seats, two-tone red-and-anthracite upholstery, aluminium-look pedals, and GT-branded floor mats.

Its standard fittings include light-sensing headlamps, rain-sensing wipers, adaptive cruise control, manual air conditioning, and a 7-inch infotainment screen with Apple CarPlay and Android Auto.

What you need to earn

The following formula can be used to calculate the monthly repayments on the VW Polo Vivo:

• Car price – R271,900/R363,300
• Payment term – 60 months (5 years)
• Interest – 10.50%
• Deposit – 0%
• Balloon – No balloon payment
• Extras – No optional extras

Using this calculation, you will need to pay at least R5,844 per month for the entry-level Vivo hatch, all the way up to R7,809 per month for the top-of-the-range GT derivative.

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

As a result, you will need to earn a minimum of R29,250 per month to afford the cheapest passenger car built in South Africa, up to R39,050 per month to afford the flagship VW Polo Vivo GT, without paying a deposit or balloon.

It must be noted that this amount does not account for additional vehicle ownership costs, including insurance, fuel, and maintenance, which must all be factored into your budget when calculating affordability.