A BMW Z4, Range Rover Evoque, and Jaguar XE are a few of the cars you can purchase on a vehicle finance plan that costs R20,000 per month.
These are the types of cars and SUVs available in the R950,000 price range – which is what you can access if you are willing and able to cover this monthly installment.
The payment plan in this example is based on a five-year contract at an interest rate of 9%.
No deposit was put down and no balloon payment was used.
The calculation below provides an overview of this R20,000-per-month example.
- New Car Price – R955,000
- Payment Term – 60 months (5 years)
- Interest – 9%
- Deposit – 0%
- Balloon – No balloon payment
- Extras – No optional extras were fitted
- Monthly Payment – R19,918
In terms of the cars on offer in the price range, there are a bevy of SUVs from Jaguar, Land Rover, BMW, and Audi on offer.
A few stylish sedans and high-end 4x4s are also available to local shoppers.
The list below provides an overview of the types of vehicles available.
- Jeep Wrangler 3.6 Rubicon – R908,365
- BMW Z4 sDrive20i M Sport – R920,014
- Volkswagen Amarok 3.0 V6 TDI Highline 4Motion – R921,900
- Jaguar XE P300 AWD R-Dynamic HSE – R931,856
- Land Rover Range Rover Evoque P250 – R944,930
How much you should earn
R20,000 per month is a lot of money to pay for a car, and financial experts recommend only taking on this type of financing if you can afford it.
A good way to check whether you can afford a car is to look at the monthly payments compared to your gross salary.
It is recommended that you do not spend more than 20% of your gross monthly income on car payments.
This means that you should earn R100,000 per month before deductions before you consider spending R20,000 per month on a car.
You must also keep in mind that fuel and insurance costs will have to be covered over the lifetime of your vehicle.
It is therefore prudent to calculate a total monthly “cost of ownership” for the vehicle and ensure it does not eat an unreasonable chunk of your income.