The salary you need to earn to afford the new VW Golf in South Africa

Motorists will need to earn at least R64,000 per month in order to afford the new VW Golf on a finance plan, according to a calculation by TopAuto.

Since launch, the current-gen Golf has been exclusively sold in its hot hatch GTI and R forms in South Africa, but this will soon change with the re-introduction of the mass-market TSI variants.

The TSI will go on sale before the end of March with a total of four variants – the Life, Life +, R-line, and R-line + – with prices ranging from R580,900 to R688,100.

Importantly, this means the cost of entry for the Golf has been slashed by a substantial R272,500, as the GTI currently retails for R853,400.

The TSI models run on a 1.4-litre turbocharged petrol engine with 110kW and 250Nm, which is transmitted to the front wheels via an eight-speed automatic gearbox.

This results in an average fuel consumption of 5.2l/100km.

In terms of equipment, the Golf Life is sold with LED headlights, 16-inch Norfolk alloy wheels, a multifunction steering wheel, cruise control, a six-speaker stereo, air conditioning, 10-colour ambient lighting, a 10-inch digital cockpit, and 12.9-inch infotainment screen with wireless Apple CarPlay and Android Auto.

The Life + will throw in a customizable driver profile with modes for Normal, Comfort, Sport, Eco, and Individual, as well as a rearview camera, 30-colour ambient lighting, and Art-velour Sports seats.

The R-Line, meanwhile, adds a heated steering wheel with paddle shifters, sports suspension, three-zone climate control with rear vents, keyless entry, R-line branded seats, park distance control, 17-inch Coventry alloy wheels, and R-line bumpers for the body.

Anyone who buys the R-line +, will also get IQ Matrix LED headlights, an illuminated VW logo on the grille, 18-inch Leeds alloy rims, a power-adjustable driver seat, heated and ventilated front seats, Vienna leather upholstery with R-line logos, and stainless steel pedals.

What you need to earn

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

• Car price – R580,900 /R688,100 
• Payment term – 60 terms (5 years)
• Interest – 11.00%
• Deposit – 0%
• Balloon – No balloon payment
• Extras – No optional extras

According to this, you’ll need to pay at least R12,725 per month for the Life, or up to R15,056 per month for the R-line +.

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

This means you’ll need to earn anywhere from R63,625 per month to R75,280 per month to afford the new Golf TSI on a finance plan in South Africa.

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