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Thursday / 20 June 2024
HomeFeaturesThe salary you need to earn to afford the new Kia Picanto in South Africa

The salary you need to earn to afford the new Kia Picanto in South Africa

Motorists who wish to own a Kia in South Africa will need to earn at least R30,000 per month if they want to buy one on a finance plan, according to a calculation by TopAuto.

The Korean automaker’s entry-level car, the Picanto, recently underwent an extensive update that spruced up its look, added new features, and simplified the line-up.

The hatchback now has six units to choose from, with prices ranging from R260,995 to R325,995.

The facelifted Picanto has a new light profile with horizontal bars across the front and back, a revised grille, and new bumpers that are intended to give the car a sportier design.

The base LX comes with remote central locking, keyless entry, 14-inch steel wheels with styled covers, black cloth upholstery, a multifunction leather steering wheel, manual aircon, an 8.0-inch infotainment unit with Apple CarPlay and Android Auto, a reverse camera, four speakers, ABS, and two front airbags.

Adding to this, the mid-range EX features 14-inch alloy rims, a centre storage console, occupant alert for the rear seats, a 4.2-inch multi-info driver’s display, automatic headlights, two more speakers, electronic stability control, and hill-start assist.

Those who splash for the top-end EX Plus can then expect 15-inch alloy wheels, push-button start, automatic climate control, two-tone black-and-grey artificial leather upholstery, and rear parking sensors.

There are two engines to choose from in the Picanto range, starting with a 1.0-litre petrol that puts out 49kW and 95Nm and has an average fuel consumption of 5.0-5.3l/100km, depending on the transmission.

The other option is a 1.2-litre unit with 62kW and 122Nm, which consumes anywhere from 5.0-5.9l/100km.

In either case, you can opt for a five-speed manual or a four-speed automatic gearbox.

Each purchase of the new Kia city car comes with a 5-year/unlimited-kilometre warranty and roadside assistance plan, as well as a 2-year/30,000km service plan.

What you need to earn

We can use the following formula to work out the monthly payments on the new Kia:

  • Car price – R260,995/R325,995
  • Payment term – 60 terms (5 years)
  • Interest – 11.75%
  • Deposit – 0%
  • Balloon – No balloon payment
  • Extras – No optional extras

According to this, you will need to spend anywhere from R5,868 per month and R7,306 per month to pick up the new Picanto.

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

This means you will need to earn at least R29,340 per month and R36,530 per month to afford the hatchback on a finance plan.

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

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