Features / 30 April 2021 / Albert du Toit

10 cars you can buy with the average South African salary

According to Stats SA, the average monthly salary paid to employees in the country’s formal sector in 2020 was R23,133.

This money is used by individuals to cover their expenses, with a major one being car payments.

As you may know, R23,000 per month will not let you drive around in the newest German coupe.

In addition, yearly increases in vehicle prices along with record-high petrol prices have made owning a vehicle a greater financial burden.

You therefore want to be sure that the car you buy today will last you for several years.

Car payments

To see the cars you can “afford” on a monthly salary of R23,133, we took advice from financial service providers which states you should not spend more than 20% of your gross monthly income on financing a car.

This works out to a limit of R4,626 per month in car finance payments – excluding insurance and running costs – and gives you a new vehicle purchase price of R280,000 when using the parameters below.

New car price – R280,000
Payment term – 72 months (6 years)
Interest rate – 9%
Deposit – 10%
No balloon payments or extras

The list below details the new vehicles available in South Africa in this price range.

Bakkie

Mahindra Pik Up 2.2CRDe S6

Price – R271,499
Power – 103kW/320Nm
Warranty – 4-year/120,000km warranty, a 5-year/90,000km service plan, and 4-year/120,000km roadside assistance.

GWM Steed 5 2.0VGT Double Cab SX

Price – R274,900
Power – 105kW/305Nm
Warranty – 5-year/100,000km warranty, a 3-year/45,000km service plan, and 5-year/unlimited kilometre roadside assistance.

Hatchback

Hyundai i20 1.2 Motion

Price – R275,600
Power – 61kW/115Nm
Warranty – 5-year/150,000km warranty and an additional 2-year/50,000km powertrain warranty, a 2-year/30,000km service plan, and 7-year/150,000km roadside assistance.