The salary you need to afford Suzuki’s new sedan in South Africa

Motorists will need to earn at least R25,000 per month in order to afford Suzuki’s new sedan on a finance plan, according to a calculation by TopAuto.

The Japanese automaker recently launched the next-gen Dzire in South Africa, which is available in three specifications with prices ranging from R224,900 to R266,900.

The Dzire shares the same platform as the fan-favourite Swift hatchback, which means buyers can expect a 1.2-litre naturally-aspirated petrol engine with 60kW and 112Nm.

The base GA units are sold with a five-speed manual gearbox, while the higher-spec GL+ has the added option of a continuously variable transmission (CVT).

The manual Dzire has an average fuel consumption of 4.4l/100km, while the CVT consumes a slightly higher 4.5l/100km.

As far as equipment is concerned, the GA models come standard with 14-inch steel wheels with plastic covers, daytime running lights, manual aircon, a multi-info driver’s display, cloth seating, rear parking sensors, electronic stability control, hill-start assist, ABS, and six airbags.

The GL+ then has extra features such as front fog lamps, 15-inch alloy wheels, chrome accents, a multifunction steering wheel, a 7-inch infotainment system with wireless Apple CarPlay and Android Auto, cruise control, and a reverse camera.

Each purchase includes a 5-year/200,000km warranty and 4-year/60,000km service plan.

What you need to earn

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

• Car price – R224,900/R266,900
• 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 R4,985 per month for the GA, and up to R5,898 per month for the GL+ Auto.

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 R24,925 per month to R29,490 per month to afford the new Dzire on a finance plan.

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