What you need to earn to afford the new Tata Osprey in South Africa

Anyone looking to get their hands on Tata’s new SUV – the Osprey – will need to earn at least R27,000 per month to afford it on a finance plan, according to a calculation by TopAuto.

That is because the crossover, which is known as the Nexon in its home market, arrived in four derivatives and prices starting from R249,900.

No matter the price, all four Osprey variants are powered by a 1.2-litre turbocharged petrol engine that makes 88kW and 170Nm, while their transmissions are what set them apart.

The Smart+ derivatives feature a manual and an automatic version, while the Creative and Creative+ are fitted with a seven-speed dual-clutch automatic transmission as standard.

While Tata has yet to confirm local figures for the Osprey, the Nexon boasts fuel consumption of 5.7 to 5.9l/100km, which may translate to our market.

Standard features on the entry-level Osprey Smart+ derivatives include LED headlamps and daytime running lamps, rear parking sensors and 16-inch steel wheels.

Inside, these are fitted with a 4-inch LCD driver display behind a two-spoke flat-bottom steering wheel, a seven-inch touchscreen infotainment screen, and fabric seats.

Safety features include six airbags, Electronic Stability Programme (ESP), and ABS with Electronic Brakeforce Distribution (EBD).

The Creative variants add a 10.25-inch Harman infotainment system and automatic climate control with rear air vents, alloy wheels and roof rails, cruise control, a 360-degree surround-view camera and a blind-view monitor.

At the top of the range, the Creative+ adds an electric panoramic sunroof and a wireless phone charger, keyless entry and push-button start, front parking sensors and a tyre pressure monitoring system.

What you need to earn

South African buyers looking to purchase the Indian crossover SUV can use the following formula to calculate whether the vehicle would fit their budget:

• Car price – R249,900/R329,900
• Payment term – 60 months (5 years)
• Interest – 10.50%
• Deposit – 0%
• Balloon – No balloon payment
• Extras – No optional extras

According to this calculation, potential buyers will need to spend at least R5,371 per month for the manual entry-spec Smart+, up to R7,091 per month for the top-spec Creative+ variant.

Financial experts also recommend that buyers avoid spending more than 20% of their gross salary on monthly vehicle repayments.

Someone in the market for the Indian crossover and decides to follow this advice will need to earn at least R26,850 per month to afford the manual model.

However, if you are in the market for the top-of-the-range automatic variant, you will instead need to earn at least R35,500 per month, without a deposit or balloon payment.

Buyers looking to purchase any of the Tata crossovers need to realise that these repayments do not include additional vehicle ownership costs that need to be considered when calculating affordability.

These include, among others, insurance, fuel, and maintenance, which could easily add a few thousand rand per month to your vehicle ownership costs.